Queensland's proposed seller disclosure regime could make selling a home harder

The proposed introduction of a seller disclosure regime in Queensland could see homeowners slugged with extra costs and responsibilities when selling their home.

As it stands in Queensland, the onus is on a buyer to make sure they’re aware of everything right and wrong with a house they’re planning to purchase, with minimal legal responsibility on the seller.

The proposal has been met with mixed feedback by Brisbane agents. Some welcome the changes, but others say it will only make the already stressful process of selling a home worse.

“We have these people already stressed to the eyeballs, do we want to put more pressure on them?” Belle Property Bulimba principal Tony O’Doherty said. “My primary and predominant concern is we’re putting strain on people who are already at breaking point.”

The QUT Commercial and Property Law Research Centre was commissioned by the Queenslander government to investigate if a seller disclosure regime should be introduced as part of a review.

Professor Sharon Christensen said because no such regime existed, buyers were loaded with the responsibility by default.

“In the absence of a seller disclosure regime the principle of caveat emptor applies,” Professor Christensen said. “This means provided the seller gives the buyer the required information about the title to the property the buyer must satisfy themselves about any matters related to the quality of the property.”

Professor Christensen’s team recommended the government require sellers to provide a slew of information to buyers including but not limited to all the title information, if any easements exist, if any works done by unlicensed builders. Buyers would still have to provide their own building and pest inspections, and do a few other inquiries by themselves.

Professor Christensen said the changes would streamline the process for all parties involved in residential sales, particularly for buyers at auction.

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“If the recommendations were adopted in their current form buyers at auctions should have more information about the property and be in a better position to make an informed decision whether to buy and at what price,” she said.

Jordan Navybox from Cohen Handler’s buyer’s agents welcomed the proposed changes. He said buyers disclosing as much as possible before putting their property on the market would ease the process for all parties involved.

“To be honest I think if they want a quick and easy sale like every seller does they should be disclosing these things,” Mr Navybox said. “With these being disclosed you will find it’s far fewer conditional contracts will be terminated and far fewer conditional contracts will need to be entered into.

“I think it needs to be noted that these are costs that are incurred anyway, we just need to note that they will be at the start of the transaction and move from the buyer to the seller.”

Harcourts M1 Coorparoo agent Patrick Ivey agreed with Mr Navybox’s assessment. “There should not be a grey patch as to what the buyer is purchasing, they should be fully equipped with every piece of information.”

He believed preventing contracts from falling through should be the highest priority. “Everyone needs to be on the same page, so there’s no remorse during the 14 day building and pest period.”

Mr O’Doherty wasn’t convinced. “Initially it’d be chaotic … we’re solving a problem that may not exist,” he said.

The Queensland Government will decided to move ahead with the proposed changes in the coming months, and the public can make submissions via email before November 11.

Read the full report here.