Under the reforms introduced last August, buyers must receive key property information before signing a contract, including body corporate records, planning and zoning details, and registered encumbrances rather than during the contract phase.
QLS President, Peter Jolly said it was important to clearly distinguish between longstanding market behaviour and the purpose of the new disclosure regime.
Gazumping is when a seller accepts a higher offer after a verbal agreement but before a binding contract is signed. It is a feature of competitive property markets and is driven by how properties are marketed and how offers are managed by sellers and agents.
Mr Jolly said the seller disclosure laws and gazumping are not related.
“The seller disclosure regime is designed to improve transparency, streamline the buying process, and provide sellers with greater confidence that a contract will hold and buyers with important information upfront.
"Gazumping, relates to how a sale is handled, and in that respect many of the underlying dynamics that existed prior to the regime remain unchanged.”
Mr Jolly said the disclosure regime does not change listing strategies, offer deadlines or negotiation processes, and provides benefits for both buyers and sellers.
“Buyers have transparency about what they're buying, and sellers have the confidence to know that when they get to a contract stage, the contract is more likely to go all the way to completion.”
Professor Sharon Christensen who played a key role in drafting the legislation said Queensland was simply catching up with other states.
“Other Australian jurisdictions and comparable overseas markets have long accepted seller disclosure as standard practice. Queensland is not out on a limb; it is simply catching up.”
She said early experiences showed the regime was working as intended.
“What we’re seeing now is the disclosure regime working exactly as it was designed. Buyers are making decisions with their eyes open, before they are legally committed, which is the most effective way to reduce risk and regret in property transactions.”
First home buyer Sarah De Jong said the new disclosure documents made the decision to buy clearer.
“I think it's overwhelming generally when you're purchasing your first property, so anything that we can do to make that process a little bit more streamlined for any buyer, let alone first home buyers, I think has to be a positive impact in the way that our property market is going.”
She said the documents made it clear exactly what her family was entering.
“I think it gave us a real sense of comfort that we really knew what we were buying, what our hidden costs may have been, what our hidden future might have looked like in relation to this property.”
Mr Jolly said the reforms bring property transactions into line with disclosure obligations that apply to lesser value purchases.
"If you buy a product or a car, you expect to get a lot of information about the product or the car before you buy it. So, it's not unreasonable that the same process should apply when you make the biggest investment decision that you might ever make.”
QLS continues to work closely with legal practitioners, the real estate industry and government to ensure a smooth transition to the new seller disclosure laws.
