In this third and final article in our series on Queensland’s new Property Law Act – which comes into force on 1 August 2025 – we look at three key changes that will impact property rights and obligations.
Key points:
- The Property Law Act 2023 (Qld) (2023 Act) replaces the Property Law Act 1974 (Qld) (1974 Act)
- The 2023 Act introduces significant reforms aimed at making property transactions more transparent and clarifying the rights and obligations of sellers and buyers
- Among the changes, easements over burdened land will apply to successive owners, the limitation period for disputes in respect of deeds has been reduced from 12 to 6 years, and settlement dates can be extended due to an ‘adverse event’
Positive covenants in easements now ‘run with the land’
Under the 1974 Act, a positive covenant (an obligation to take an action) contained in an easement was not enforceable against a successor in title, regardless of whether the easement was registered on title or not. This was because the obligation was considered personally binding on the registered owner who granted it, so did not automatically transfer to a future owner of the property on its sale.
Under the 2023 Act, both positive and negative covenants contained in a registered easement over land relating to the use, ownership or maintenance of the burdened land will bind the grantor and the grantee of the easement, as well as their respective successors in title. The 2023 Act provides a non-exhaustive list of examples of positive covenants, including:
- maintaining or repairing the burdened land;
- paying (or contributing to the payment) of rates or taxes relating to the burdened land;
- constructing, maintaining, repairing or replacing improvements or infrastructure on the burdened land in connection with the easement;
- indemnifying a party to the easement in connection with the use of the easement;
- insuring (or paying for or contributing to the payment for insuring) for risks associated with the use of the easement.
That being said, this new rule will not apply if the covenant is expressed to be personal to the original grantor and grantee named in the easement.
Six-year limitation period for bringing an action under a deed
The limitation period for bringing an action under a deed is now six (6) years from the date on which the cause of action arose. Previously it was 12 years.
This change only applies to deeds that are entered into from 1 August 2025 (so it does not apply retrospectively).
Settlement extensions permitted for adverse events
The 2023 Act allows for the settlement of a contract of sale to be extended where there is an ‘adverse event’ which prevents a party (the non-attending party) from completing settlement on the nominated date and time. In these circumstances, time will cease to be of the essence and the non-attending party will not be considered in breach of contract – provided they have taken reasonable steps to mitigate the effects of the adverse event on settlement.
An ‘adverse event’ is an event that causes serious disruption to a community, including, for example:
- a cyclone, fire, flood, landslide, seismic event, storm, storm tide, tsunami or tornado;
- a public health emergency under the Public Health Act 2005 (Qld);
- a requirement to comply with a lawful direction or order given by a government entity under a law of the Commonwealth or a State;
- an act of terrorism, activity related to war, civil commotion, public disturbance or riot; or,
- an explosion or sudden impact of an object, including, for example, an aircraft or object from space.
As soon as practicable after the adverse event, the non-attending party must elect a new date and time for settlement of the contract (being not less than 5 business days and not more than 10 business days after the date the notice is given). The parties may subsequently agree to a different date and time for settlement.
As soon as the new day and time are nominated, time will again be of the essence. If both parties are impacted by the same adverse event and both serve notices electing a new date and time for settlement, the notice given by the seller will prevail.
For more information, please contact Sarah Roettgers, Matthew Butchard or Faye Winterflood.
