What it does
The Land Sales Act 1984, as reproduced in the source, sets mandatory disclosure, settlement and trust-account rules for the sale of proposed lots in Queensland (see s 3, s 10-s 14, pt 2). Mechanically, the Act requires sellers to give either a disclosure plan and disclosure statement, or an approved plan of survey, before a buyer enters into a contract for a proposed lot (s 10). It prescribes what must be in the disclosure plan (prepared by a cadastral surveyor, s 11) and in the disclosure statement (signed by the seller, s 12). The Act gives buyers specific termination rights where disclosure or settlement rules are breached (s 10(3), s 13(4), s 14(5)). It also fixes a maximum period for settlement, 18 months from contract entry, for a seller to complete the subdivision and settle the sale (s 14(1)).
The Act imposes strict handling for amounts paid towards the purchase of a proposed lot before settlement. Those amounts must be paid to a recognised entity , a law practice, public trustee or a real estate agent , and held in a prescribed trust account (ss 15-17). Recognised entities must keep funds until entitlement vests and must deal with the monies under the law governing their trust accounts (s 18). Investment of trust monies is permitted only with contract authorisation or signed consent and in line with trust-account law (s 19).
For off-the-plan contracts, the Act now curtails automatic sunset termination. Division 4A (ss 19A-19F) treats sunset clauses as not automatically terminating a contract (s 19C), requires specified notice before termination attempts (s 19D), makes buyer consent a precondition to seller termination in most cases (s 19D(1)(a)), and creates a court pathway where the seller can apply to the Supreme Court for permission to terminate on just and equitable grounds (s 19F). The court must consider a non-exhaustive list of factors including seller conduct, whether matters beyond the seller’s control affected settlement, prospects for settlement, effects on buyer and seller, performance by the buyer, and any value increase in the proposed land (s 19F(3)).