Push for property laws to include sellers disclosing flood risks

The state’s councils are pushing the Palaszczuk government to mandate that flood and natural hazard risks be­ ­disclosed by property sellers to prospective buyers.

An image from the 2011 floods in Brisbane. Picture: AFP PHOTO / Torsten BLACKWOOD

The state’s councils are pushing the Palaszczuk government to mandate that flood and natural hazard risks be­ ­disclosed by property sellers to prospective buyers.

It comes after the government introduced new laws to parliament last month, including new disclosure rules aimed at ensuring buyers were better informed about their purchases.

But, in a submission made to the parliamentary committee examining the legislation, the Local Government Association of Queensland warned the proposed scheme does not go far enough.

The LGAQ wants the government to work with councils so that a mandatory disclosure scheme of natural hazard risks – such as floods – can be introduced before the new property laws come into effect.

They have argued that by putting the onus on the vendor, it would ensure buyers are able to avoid a property purchase that “proves to be adversely affected by factors they may be unaware of”.

“Queensland is the country’s most disaster-prone state and yet, without a statutory seller disclosure scheme, it is currently a case of ‘buyer-beware’,” the LGAQ says in its submission.

“The current proposed reforms do not go far enough to inform buyers of constraints on land and natural hazard risks, putting even more pressure on councils.

“There is a need for a consistent statewide approach to this issue to benefit Queensland communities through increased awareness of risks.”

The LGAQ points out that the onus is currently on the buyer to “undertake due diligence”, and that they must take on the costs of conducting these checks.

“This means there is no guarantee a buyer will know the risks when purchasing a home in an area affected by a natural hazard,” the submission says. “In other jurisdictions, costs are borne by the vendor to obtain the necessary certificates as part of the conveyancing process, so buyers are informed.”

Attorney-General Shannon Fentiman’s office pointed to comments she made in her speech when she introduced the laws – where she promised to work with stakeholders, including the LGAQ, to develop a mandatory disclosure scheme. However, in that same speech, she also said there were a “range of practical and legal difficulties” in introducing such a scheme – including that different councils held varying information on the possible risks.

Under the government’s proposed reforms, disclosure certificates would not need to include any specific warnings about flood risks that directly relate to a property, merely a statement urging prospective buyers to do their due diligence to ensure the property does not have any flood or natural hazard risks.