New seller disclosure laws in Queensland are contributing to a housing market slowdown, with documentation delays causing a contract “bottleneck”.<\/p>\n
Real estate agents say there’s anxiety and frustration over the regime, which came into effect on August 1 and is designed to increase transparency in property transactions and protect buyers.<\/p>\n
Sellers must provide a mandatory comprehensive disclosure statement before a contract is signed, with information including land contamination, zoning, heritage listings, transport resumption plans and accurate rates and water charges.<\/p>\n
New laws ‘causing headaches’<\/p>\n
Brisbane agent Brett Andreassen said the legislation has had an immediate, widespread impact on the housing market.<\/p>\n
“Right now, it’s frozen,” Mr Andreassen said.<\/p>\n
“It’s stopping the ability to do contracts \u2026 because the entire process is bottlenecked.<\/p>\n
“It’s causing headaches across the board.”<\/p>\n
<\/p>\n
Brett Andreasson says agents are already experiencing delays of up to 10 days in getting required documentation. (ABC News: Lexy Hamilton-Smith)<\/p>\n
Mr Andreassen said agents were already experiencing lengthy delays of up to 10 days in getting the full suite of documentation required from relevant agencies and departments.<\/p>\n
“Previously, I could get a phone call today from someone wanting to sell, we could book in to get the photos for tomorrow, and have the property on the market within days,” he said.<\/p>\n
“[That’s] because we’d have a 48-hour turnaround on the paperwork that was required for the contract.<\/p>\n
“Now, we’re waiting seven to 10 days for all the paperwork. It’s resulting in lost momentum.”<\/p>\n
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The new laws will allow buyers to cancel the sale if certain information is not given to them by the seller.\u00a0 (ABC News: Pete Mullins)<\/p>\n
It’s a sentiment echoed by Antonia Mercorella from the Real Estate Institute of Queensland, who said sales had slowed, particularly for units and apartments.<\/p>\n
“What we’re seeing playing out now is what we feared, which is that it can take time to obtain the necessary information from the relevant suppliers,” she said.<\/p>\n
“Realistically, it’s going to take a number of weeks, if not months [for the housing market to pick back up].”Agents ‘freaked out’<\/p>\n
Fellow Brisbane agent Gabrielle Trickey said the additional requirements were impractical and complex.<\/p>\n
“It’s been a nightmare,” Ms Trickey said.<\/p>\n
“I know one agent who sent out a disclosure statement that’s close to 100 pages \u2026 not even including the contract.<\/p>\n
“If you’re a first home buyer, you’re just buggered \u2014 you’re looking at so many pages before you even get to the contract.”<\/p>\n
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Gabrielle Trickey says real estate agents are “freaked out” by the potential for last-second cancellations by buyers. (ABC News)<\/p>\n
The reforms enable buyers to terminate a contract up until settlement if the required disclosure documents are not provided, or contain insufficient or incorrect details.<\/p>\n
“As agents, we’re all freaked out [by that],” Ms Trickey said.<\/p>\n
Ms Mercorella said sellers and agents were “right to be nervous”.<\/p>\n
“I’ve spoken with a number of lawyers who have expressed the view that the regime will be used by some to terminate contracts \u2026 we’ve seen the experience in other jurisdictions,” she said.<\/p>\n
<\/p>\n
Antonia Mercorella says agents are concerned buyers will use the laws to back out of sales. (ABC News: Michael Lloyd)<\/p>\n
“It’s well-known that some buyers will get cold feet and will look for opportunities and grounds for termination.<\/p>\n
“So, understandably, there is a degree of nervousness that is being experienced.”<\/p>\n
‘Guzumping’ fears<\/p>\n
Mr Andreassen said the uncertainty had created the “potential” for “gazumping”, which occurs when a buyer and seller agree on a price, but the seller backs out before the paperwork is complete.<\/p>\n