On 7 June 2024, REIQ published new updated versions of the contracts for House and Residential Land and Residential Lots in a Community Title Scheme, to reflect the amendments to the Residential Tenancies and Rooming Accommodation Act 2008 (Qld) (‘RTRA Act‘).
The RTRA Act was amended to apply an annual limit on the number of times a landlord can increase the rent at a premises, which is now no more than once in 12 months (section 93 of the RTRA Act).
In addition to this, a new section 93A has been added to the RTRA Act which, on request by a tenant, requires a landlord to provide evidence to the tenant of the day the last rent increase was provided for the premises. If the landlord is unable to provide the evidence within 14 days of the request from the tenant, financial penalties may apply.
To reflect these amendments, the REIQ Residential (House and Land and unit) Contracts have each been amended to add the disclosure obligations on the Seller of a residential property, where the Seller is now required to disclose if whole or part of the property has been tenanted any time in the last 12 months under a Residential Tenancy Agreement or a Rooming Accommodation (‘Relevant Agreements‘).
What this means for you as a Buyer
If you are a Buyer purchasing a residential property, and the Seller has disclosed that the property was tenanted under a Relevant Agreement in the last 12 months, you must ensure that the Seller provides to you before settlement, evidence of the date of last rent increase at the premises to enable you to provide this evidence to any current or future tenant who asks for that evidence and to avoid financial penalties under the RTRA Act.
What this means for you as a Seller
If you are a Seller selling a residential property, and your property was tenanted under a Relevant Agreement in the last 12 months, you must:-
- make accurate disclosure under the REIQ Contract; and
- provide to the Buyer before Settlement, evidence of the date the last rent increase occurred.
Any inaccurate disclosure of Relevant Agreements or the last date of rental increase is a breach of warranty, and the Buyer may be entitled to compensation.
Any failure to provide the required Rent increase evidence before Settlement may permit the Buyer to terminate the Contract.
NOTE: the above comments are very general. Individual circumstances will require specific solutions.
For more personalised legal advice based on your circumstances, please contact Wilson Lawyers on (07) 3392 0099.