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10 July 2024

Amendments to the Residential Tenancies and Rooming Accommodation Act 2008 (Qld)


Published on 10 July 2024
Legal trends Specialisation Client management

The amendments to the Residential Tenancies and Rooming Accommodation Act 2008 (QLD) will have an impact on REIQ contracts. According to Tara Cush, lecturer at the College of Law Queensland, these changes work to protect tenants and will have implications for sellers of a property in Queensland. Below Tara outlines the key amendment outcomes property practitioners need to be aware of.

What has happened?

The REIQ contract for houses and residential land and REIQ contract for residential lots in a community title scheme have been amended as of 7 June 2024.

The REIQ contract for houses and residential land is now in its 19th edition. REIQ contract for residential lots in a community title scheme is now in its 15th edition. 

Why have the contracts been changed?

To reflect the amendments made to the Residential Tenancies and Rooming Accommodation Act 2008 (Qld). (“RTRA Act”).

What is the purpose of the amendments to the Act?

Looking at the amendments which are relevant to the REIQ contracts, the amendments to the Act seem to aim to protect tenants from more than one rent increase in a twelve-month period regardless of whether the tenanted property is sold.

What has been changed in the contracts as a consequence of the amendments to the Act?

The changes to the REIQ contracts have an impact on the seller. But only if the seller is not an exempt lessor as defined in the RTRA Act.

The seller is required to disclose whether the property being sold has been subject to a Residential Tenancy Agreement or Rooming Accommodation Agreement (as defined in the RTRA Act) within the twelve-month period before the Contract Date. 

If the property has been subject to such an Agreement, then the seller must disclose the date of the last rent increase for the property.

At settlement, the seller must provide evidence of the day of the last rent increase for the property. This is an essential term of the contract. Examples of what is considered evidence are identified in the RTRA Act.

The seller is now also subject to an additional warranty with respect to:

  • The accuracy of the information provided in the contract with respect to Residential Tenancy Agreements or Rooming Accommodation Agreements; and
  • The current rent complying with the requirements of the RTRA Act with respect to any rent increases (if the property is subject to a tenancy).

If the warranty is incorrect, the buyer is entitled to claim compensation from the seller.

The changes to the contracts have had follow on effects in the contracts in that renumbering within some of the clauses has occurred, additional definitions have been included, and other clauses have been amended to reflect the renumbering.

 

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