For years, Queensland’s property market has largely operated on a ‘buyer beware’ principle, placing the responsibility on the buyer to conduct extensive investigations before purchasing a property. However, from 1 August 2025, new seller disclosure requirements operate under the Property Law Act 2023 (Qld), fundamentally changing how properties are bought and sold in the Sunshine State. This is a significant development for anyone looking to sell property in Queensland.
The seller disclosure regime aims to enhance transparency for buyers and reduce the risk of disputes after a contract is signed, bringing Queensland more in line with other Australian states like New South Wales, Victoria, and South Australia.
What’s Changing for Sellers?
The biggest change is the introduction of a mandatory Seller Disclosure Statement (Form 2). This comprehensive document, along with various ‘prescribed certificates’, must be provided to potential buyers before they sign a contract. This means that sellers will need to be proactive in gathering information about their property much earlier in the sales process.
What Must Be Disclosed?
The Seller Disclosure Statement requires sellers to provide a range of important information about the property, including but not limited to:
- Seller and property details: The seller’s name/s, the property address, and its lot and plan description.
- Encumbrances: Details of all registered and unregistered encumbrances affecting the property. This includes easements (even if unrecorded), leases (whether written or verbal), and statutory encumbrances like rights for infrastructure access.
- Tenancy information: If the property is currently leased, details of the residential tenancy agreement.
- Zoning and land use: The property’s zoning classification under the local planning scheme.
- Government notices: Information about any notices given by local, state, or Commonwealth government entities regarding transport infrastructure proposals (like road resumptions), contamination, tree orders, or heritage listings.
- Building and compliance:
- Details of any building work carried out by an owner-builder in the last six years.
- Any unsatisfied ‘show cause’ or ‘enforcement’ notices issued under the Building Act 1975 (Qld) or Planning Act 2016 (Qld).
- Pool safety compliance (if applicable), including whether there is a valid pool safety certificate.
- Rates and water charges: Details of the most recent rates and water assessments.
- Community titles schemes (body corporates): If the property is part of a community titles scheme (like a unit or townhouse), a copy of the most recent Community Management Statement and a Body Corporate Certificate.
In addition to the Form 2, sellers must also provide prescribed certificates, which generally include:
- A title search showing interests registered under the Land Titles Act 1994
- A copy of the plan of survey registered under the Land Titles Act 1994
- Relevant notices issued under building and planning laws
- Copies of any current notices or orders from government authorities requiring work or money to be spent in relation to the property
- Relevant environmental notices
- For body corporate properties, the Community Management Statement and a Body Corporate Certificate
Certain exceptions apply to the seller disclosure obligations, and your solicitor can advise you in this regard.
What’s Not Covered?
It’s important to understand that while the regime significantly increases disclosure, some matters will remain the buyer’s responsibility to investigate. The Seller Disclosure Statement will not typically cover:
- Flooding or natural hazard history: While a crucial consideration in Queensland, sellers are not generally required to disclose this. Buyers should still conduct their own flood searches and due diligence.
- Structural soundness of the building or pest infestation: Building and pest inspections remain critical for buyers.
- Current or historical use of the property and whether building works are approved/certified: Buyers will still need to undertake their own council building approval searches.
- Presence of asbestos within buildings or improvements.
- Details about services connected to the property.
The principle of ‘buyer beware’ will still apply in these areas, highlighting the ongoing importance of a thorough due diligence process for purchasers.
Why a Disclosure Regime?
The disclosure regime aims to:
- Increase transparency: Ensure buyers have access to critical information about a property before they commit to a contract.
- Reduce post-contract disputes: By providing more information upfront, many common issues that lead to disputes after a contract is signed can be identified and addressed earlier.
- Align with other states: Bring Queensland’s property sale processes more in line with the established practices in New South Wales, Victoria, and South Australia.
Consequences of Non-Compliance
The new laws carry serious consequences for sellers who fail to comply. If a seller does not provide a completed and signed Seller Disclosure Statement and all required certificates before the buyer signs the contract, or if the information provided is inaccurate or incomplete in relation to a material matter, the buyer may have a statutory right to terminate the contract at any time before settlement.
What This Means for Sellers
If you’re planning to sell a property in Queensland, here’s what you need to know:
- Prepare early: Don’t wait until you have a buyer. Start gathering the necessary documents and preparing your Seller Disclosure Statement well in advance. This will help avoid delays once a buyer expresses interest.
- Seek legal advice: Engage a conveyancing lawyer early in the process. They can assist you in preparing the comprehensive Seller Disclosure Statement and obtaining all the required certificates, ensuring compliance with the new laws.
- Accuracy is key: The information provided in the disclosure statement must be accurate and up-to-date at the time it’s given to the buyer. Any changes that materially affect the property after disclosure may need to be addressed.
- Consider the costs: Be aware that you will now incur costs for various searches and certificates upfront, which were previously often the buyer’s responsibility or obtained later in the process.
Key Takeaways
- Mandatory disclosure: From 1 August 2025, sellers in Queensland must provide a comprehensive Seller Disclosure Statement (Form 2) and prescribed certificates to buyers before a contract is signed.
- Increased transparency: This new regime aims to give buyers more information upfront, reducing post-contract surprises.
- Seller responsibility: The onus is now firmly on the seller to provide accurate and complete information.
- Risk of termination: Failure to comply can give buyers the right to terminate the contract at any time before settlement.
- Early preparation is crucial: Engage a conveyancing lawyer early to ensure you meet all your obligations and avoid potential issues.
The new seller disclosure requirements represent a significant change for Queensland conveyancing. By understanding these changes and preparing accordingly, sellers can navigate the sales process with greater confidence and minimise risks.
This is general information only. Always seek professional legal advice to ensure your specific circumstances are properly addressed. If you or someone you know wants more information or needs help or advice, please call (08) 8232 8446 or email [email protected].