The next phase of changes to legislation governing Queensland manufactured home parks are coming into effect on 6 December 2025. Manufactured home parks, also known as “residential parks”, are often targeted at the over-50s age group as a lifestyle choice that offers a low maintenance lifestyle with community benefits, while still allowing a high degree of independence.
These legislative changes, which are being implemented in stages, aim to enhance the protections for homeowners, promote transparency and ensure fair trading practices within residential parks in Queensland. They have implications for park owners, homeowners and prospective buyers.
Prior amendments
Previous amendments that have already commenced include:
- Limitations on Site Rent Increases: Site rent increases are capped at the higher of 3.5% or the Consumer Price Index (CPI). Market rent reviews as a basis for increasing site rent are prohibited, and any such clauses in agreements are deemed void.
- Buy-Back Scheme: Eligible homeowners can “opt-in” to a buy-back scheme if their home is vacant, remains unsold for six months and is listed for sale by the park owner. If the homeowner opts in to the scheme, six months after the homeowner opts in, the park owner must reduce the site rent by 25%, and twelve months after the homeowner opts in, the park owner is required to buy back the home from the homeowner.
- Payment Options for Site Rent: Park owners must offer new homeowners at least three approved methods to pay site rent, including at least one fee-free option.
- Park Comparison Document: Park owners are required to prepare and publish a park comparison document on their website, providing prospective homeowners with essential information about the park.
- Registration of New Parks: Park owners must apply to register new residential parks. Operating an unregistered park is now an offence.
- Enhanced QCAT Powers: The Queensland Civil and Administrative Tribunal (QCAT) has been granted broader discretion to issue appropriate orders and award compensation when a site agreement is terminated.
Amendments commencing on 6 December 2025
The next phase of amendments, effective from 6 December 2025, introduce significant changes to the operation of residential parks:
- Expanded Payment Options for Existing Homeowners: Park owners must offer all existing homeowners at least three approved methods to pay site rent, including one fee-free option. Previously, this requirement applied only to new homeowners.
- New Site Agreements for Buyers: All buyers of manufactured homes will be required to enter into a new site agreement with the park owner. Existing site agreements can only be assigned when transferring ownership to a family member. Certain terms, such as utilities, communal facilities, and services included in the site rent, must remain unchanged.
- New Site Agreement Form: A new site agreement form will be introduced, incorporating the updated requirements prescribed by regulation.
- Prescribed Site Rent Increases in New Agreements: Site rent increases included in a site agreement must be in the form of one of the bases for increasing site rent prescribed by regulation. Where the bases for site rent increases results in a site rent increase greater than the annual limit, the increase will be capped at the higher of CPI or 3.5%.
- Pre-Contractual Disclosure Requirements: Prospective buyers must be provided with a new Home Owners Information Document, along with the park comparison document and site agreement, at least 21 days before entering into the site agreement. This period can be reduced to seven days if the buyer obtains legal advice to waive the pre-contractual disclosure period.
- Mandatory Sale Agreement Requirements: Sale agreements for manufactured homes must now include specific details, such as a detailed description of the home (including the number of bedrooms and bathrooms, unique features, and any attached items excluded from the sale), details of any alterations or additions to the home, sale price, payment terms and transfer of ownership details, information on the homeowner’s right to terminate the site agreement under cooling-off, and circumstances that automatically end the sale agreement.
Future Amendments
Also coming in the future is a requirement for park owners to prepare maintenance and capital replacement plans for the residential park. These plans must be provided to the homeowners’ committee, the relevant department and other homeowners upon request. The requirements for these plans will be established in an approved form and developed in consultation with key stakeholders.
Implications
Park owners must ensure that they are informed about and comply with the new requirements, including offering multiple payment options, preparing and maintaining park comparison documents, and adhering to the new site agreement and sale agreement requirements.
The buy-back scheme and limitations on site rent increases may impact financial planning and operations, especially in slower markets.
Existing homeowners will benefit from increased transparency and protections, including capped site rent increases and the availability of fee-free payment options.
The buy-back scheme provides a safety net for homeowners struggling to sell their manufactured homes.
The new pre-contractual disclosure requirements and mandatory sale agreement terms will ensure buyers are more informed before entering into site agreements.
Conclusion
The amendments to the Manufactured Homes (Residential Parks) Act 2003 (Qld) represent a significant shift towards greater transparency, fairness, and consumer protection in the operation of residential parks. It is imperative for all park owners to familiarise themselves with these changes and take the necessary steps to ensure compliance.
If you have any questions in relation to these changes, please reach out to our Property + Business Transactions team.
For further information on this alert, contact Directors Amanda Tolson & Carly Brailak.
The assistance of Lawyer Michelle Broome in the research for this article is gratefully acknowledged.
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