Australian Property News
New Queensland tenancy laws to have wide impact
Posted on Friday, June 26 2009 at 5:17 PM
New residential tenancy laws in Queensland could impact on businesses, according to law firm Clayton Utz.
Senior associate Paula Noble says businesses with property interests need to make sure they fully understand their obligations in regard to the new Residential Tenancies and Rooming Accommodation Act 2008 (Qld), which comes into effect on July 1.
She says the act will introduce changes to existing laws, including in areas including leaseback arrangements, entering into tenancy agreements, rental increases and a landlord's rights of entry.
It will directly affect parties including property and infrastructure developers, mining companies, banks and real estate agents.
One of the major changes under the new Act is leaseback arrangements.
"It's common practice in any project development work to invite the previous landowners to lease back their residential property following the acquisition of a property for a project," says Noble.
"The repealed Act did not apply to such leaseback arrangements, provided the lease was formed under a term of the contract of sale."
"While the new Act provides a similar exemption, the lease must be for a period of 28 days or less in order to qualify for the exemption."
"If the leaseback arrangements exceed 28 days, the buyer/landlord will need to strictly comply with the provisions of the new Act."
Under the new Act, a mortgagee in possession must now give a tenant two months – instead of four weeks – notice before taking possession of a residential property.
It also requires that advertising for the leasing of residential properties state a fixed rent amount and tenants must also be given the right to dispute any "unreasonable" significant changes upon the renewal of a tenancy agreement.
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