Important changes have been announced to contracts of sale in Queensland.
One of the most noteworthy, is that sellers must now disclose if they have rented their property out at any time in the past 12 months.
This includes any details of Air BnB, temporary lodgings, and granny flats.
Previously, sellers have only had to detail any current tenancy arrangements – so why the change?
The State Government announced the changes as part of a suite of measures aimed at addressing the rental crisis.
According to the Queensland Department of Housing, (www.housing.qld.gov.au) the priority is to “provide a strong, balanced approach that protects renters and rental property owners, while improving stability in the rental market”.
There are also now limits on annual rent increases, which apply to the property itself, rather than a particular tenant. This means a landlord or agent must not increase the rent for the residential property more than every 12 months.
Disclosing the number of tenants in the past year, along with the rental price, means new tenants are not being unfairly targeted with huge increases in rent.
The new amendments to the REIQ residential contracts require the seller to disclose and warrant information regarding rent increases relating to the property within the previous 12 months as follows:
- Disclose whether the property has been subject to a Residential Tenancy Agreement or Rooming Accommodation Agreement at any time in the previous 12 months before the Contract Date and if so, the date of the last rent increase.
- Warrant that the statements in the contract regarding any tenancy agreement are true and correct; and if there are tenants, the current rent complies with requirements.
- Deliver to the buyer at settlement, evidence of the day of the last rent increase.
Any breach by the seller regarding information about any tenancy agreement may entitle the buyer to claim compensation from the seller. And failing to deliver the information at settlement could entitle the buyer to terminate the contract.
It’s important for sellers and agents to be aware of these updates and to comply with the updated REIQ residential contract.
If you have any questions about how this could affect you, please contact one of our property team. Our experts are here to help you.
Make an appointment with our office today, by phoning: (07) 3207 8700 or emailing: info@bimalaw.com.au.
