NEW SELLER DISCLOSURE IN QUEENSLAND
From 1 August 2025, Queensland will implement a comprehensive statutory seller disclosure regime under the Property Law Act 2023 (Qld) and associated regulations. This marks a significant shift from the current “buyer beware” approach, aligning Queensland with other Australian jurisdictions and introducing new compliance obligations for sellers, agents, and solicitors.
BELOW WE COVER:
- Seller disclosure made simple by MAP Lawyers
- Risks of not getting a solicitor to prepare the sellers disclosure documents
- What is requested under the new regime
- Frequently asked questions:
- What are the consequences of non-compliance?
- When does the Disclosure Regime apply?
- When will disclosure NOT apply?
- What if changes occur after the Disclosure Statement and prescribed certificates are provided to a buyer?
- When and how should the disclosure documents be given?
- Specific rules for auctions
- Who can sign the Form 2 Disclosure Statement?
- Proactive steps sellers can take
1. SELLER DISCLOSURE MADE SIMPLE BY MAP LAWYERS
Here at MAP Lawyers, seller disclosure statements are not anything new as we have been preparing these for NSW and VIC jurisdictions for some time, and we have the processes and capacity in place to ensure a seamless transition in QLD. We are also set apart from our competitors in that each matter is handled from A-Z by a qualified solicitor, decreasing the chances for errors and omissions.
OUR SERVICE
For a fixed fee of $699.00 incl GST plus the cost of searches, we will offer the following services:
- Preparation of the disclosure statement and compilation of prescribed certificates and information into a neat bundle which gets signed by the seller and provided to the agent for marketing and contract;
- The agent can still retain control over the contract of sale negotiation; and
- We are happy to complete a free pre-signing contract review service for standard REIQ contracts prior to signing (if required).
TIMEFRAME
Our estimated timeframes for the preparation of the seller disclosure documents are:
- For standard house/land – 3-5 business days
- For lots in a community title scheme or BUGTA scheme – 5-10 business days.
The above is a guide only and would commence upon receipt of our engagement documents and funds into trust.
HOW TO ENGAGE MAP
We strongly recommend that agents have the seller disclosure documents prepared immediately following the execution of a Form 6 engagement agreement. If you would like us to become involved, all you need to do is send an introductory email to contact@maplawyers.com.au or call 1300 680 584 and we can get the ball rolling from there.
The sooner we are instructed, the sooner the documents can be prepared, and the property can be sold.
HOW WE HELP BUYERS
We offer a free pre-signing contract review service for standard REIQ contracts and try to turn this around within 2 hours (t’s and c’s apply).
If a buyer would like us to review the Seller Disclosure Statement and Prescribed Certificates, our fees vary from $299-$699 depending upon the length and complexity of the documents. Our review service includes a comprehensive review and summary letter. Our review does not include negotiation of contractual terms.
2. RISKS OF NOT GETTING A SOLICITOR TO PREPARE THE SELLER DISCLOSURE DOCUMENTS?
If the seller disclosure documents are incomplete or inaccurate, it may entitle a buyer a right of termination right up until settlement and this is going to be a legal minefield.
We strongly suggest that the small fee of paying a solicitor to prepare the seller disclosure documents is worth every cent to ensure that the deal proceeds to settlement. We also recommend using a firm like MAP Lawyers that are specialists in property law and have the appropriate processes in place to turn the seller disclosure statements around quickly and cost effectively.
While agents are permitted by law to prepare and deliver the disclosure documents on behalf of the Seller, we note the following:
- Preparation of the documents is a stressful and onerous task;
- Risk of inaccuracy: Agents may not have the legal expertise to interpret complex encumbrances, statutory notices, or compliance issues, increasing the risk of errors or omissions and ultimately, jeopardizing a deal;
- Limited legal protection: If the agent makes a mistake, the seller may still be liable, and the buyer may terminate the contract. Having a solicitor prepare the disclosure documents will mean that the risk for dispute and potential litigation is minimised; and
- Complex properties: For properties with complicated title, planning, or environmental issues, agent-prepared disclosures may be inadequate.
3. WHAT IS REQUIRED UNDER THE NEW REGIME?
SELLER DISCLOSURE STATEMENT (FORM 2):
Sellers must provide a completed and signed Form 2 Seller Disclosure Statement to the buyer before the buyer signs the contract. This form is in the approved format and must contain prescribed information and warnings.
See the following link to access the Form 2:
If no form or the incorrect form is used, this may entitle a buyer to terminate the contract any time up until settlement.
PRESCRIBED CERTIFICATES
Sellers must also provide the following Prescribed Certificates:
- Current title search
- Registered plan
- Owner builder notice if building works have been completed by an unlicensed person within the last 6 years
- If the Seller has been given a show cause or enforcement notice which remains in effect under the Building Act 1975 or Planning Act 2016
- If the Seller has received a notice or order by a competent authority requiring work to be done or money spent which remains in effect, a copy of the notice
- Contaminated Land Search
- If the property contains a pool, a pool safety certificate or notice of no pool safety certificate
- If the property is a lot in a community titles scheme or BUGTA scheme, a copy of the Body Corporate Certificate for the lot (in the approved form) or, an explanatory statement as to why it cannot be provided.
PRESCRIBED INFORMATION
Sellers are also required to provide the following Prescribed Information:
- Name of the Seller, address of the lot, legal description
- Details of registered encumbrances (ie. easements or covenants)
- Details of unregistered encumbrances (ie. access agreements, unregistered mortgage or tenancy agreement)
- Details of statutory encumbrances (ie. dial before you dig/Develo type report) which includes a description of the encumbrance and plan showing the location of the infrastructure
- Zoning information
- QCAT Neighbourhood Disputes search
- Transport and Main Roads search
- Heritage search
- If the Seller has received a notice of intention to resume the lot or any part of it by any Authority
- Most recent rates and water rates notices
- If subject to a residential tenancy agreement, a copy of the tenancy agreement and the date of the last rent increase.
The Prescribed Information is contained within the Form 2 Disclosure Statement.
The Disclosure Statement, Prescribed Certificates and Prescribed Information is collectively referred to as the Seller Disclosure Documents.
4. FREQUENTLY ASKED QUESTIONS
WHAT ARE THE CONSEQUENCES OF NON-COMPLIANCE?
If the seller fails to provide the disclosure statement or prescribed certificates the buyer will be entitled to terminate the contract at any time prior to settlement. There is no requirement for this failure to be material.
If the information in the disclosure statement or a prescribed certificate is inaccurate at the time it is given or not substantially complete, the buyer may terminate the contract if the inaccuracy or omission relates to a material matter affecting the lot, which the buyer was unaware of at the time of signing and if the buyer had been aware of the correct state of affairs, the buyer would not have signed the contract. Note, changes to rates and water are specifically excluded as a ‘material matter’ that would give rise to a right of termination.
WHEN DOES THE DISCLOSURE REGIME APPLY?
The new seller disclosure regime will apply to all contracts for the sale of freehold land signed on or after 1 August 2025 and this is not something that can be contracted out.
WHEN WILL DISCLOSURE NOT APPLY?
The Seller Disclosure Regime will not apply to the following:
- off the plan contracts;
- contracts for the sale or transfer of leasehold land;
- a transfer of land from one party to another without consideration (ie. a gift);
- transfer of a water allocation;
- sale of a unit in a building with company title;
- where the buyer and seller are related parties;
- where the buyer is the State, Commonwealth or local government, a statutory body, a listed corporation or a subsidiary of a listed corporation;
- where the contract gives effect to a court order, or financial agreement under the Family Law Act 1975 (Cth);
- where the contract gives effect to the transmission of an interest in the lot to a personal representative;
- the contract is for the sale of a lot under the Acquisition of Land Act 1967;
- where the contract arises from the exercise of an option, the seller has previously complied with the disclosure requirements, and the buyer remains unchanged; and
- where the purchase price is $10m or more and the buyer signs a waiver.
WHAT IF CHANGES OCCUR AFTER THE DISCLOSURE STATEMENT AND PRESCRIBED CERTIFICATES ARE PROVIDED TO A BUYER?
The information must be true and accurate at the time it is given. There is no statutory requirement to update the seller Disclosure Documents if it becomes inaccurate after it is given but before the contract is signed. However, failing to update may expose a seller to claims of misleading or deceptive conduct, and if the inaccuracy is material, the buyer may have a right of termination. Best practice therefore is to update the disclosure and ensure the buyer receives the most current information before signing.
WHEN AND HOW SHOULD THE DISCLOSURE DOCUMENTS BE GIVEN?
The disclosure statement and the prescribed certificates must be given to the buyer before the buyer, or if multiple buyers, the first buyer, signs the contract.
The disclosure statement and prescribed certificates can be provided by hand, post, by providing an electronic link and if consent to receive electronic communication is given, email (note, consent to receive electronic communication can reasonably be inferred from the conduct of a buyer).
The prescribed certificates may be given with the disclosure statement, but they are not required to be attached and can be provided separately and by different communication methods (provided they are all given to the buyer before the buyer signs the contract).
We anticipate that agents will provide the seller signed disclosure statement and prescribed certificates as a bundle via email/electronic link and the buyer will sign the disclosure statement to acknowledge that they have received it prior to signing the contract.
The onus is on the seller to prove that the disclosure statement and prescribed certificates were provided to the buyer before the buyer signed the contract. Record keeping for agents will become essential.
SPECIFIC RULES FOR AUCTIONS
If a property is sold by auction, the seller should give a copy of the disclosure documents to all registered bidders prior to the commencement of the auction.
If the buyer is not registered as a bidder until after the start of auction, the following apply:
- If the auction is conducted in person, disclosure documents must be displayed at the place of the auction from the start of the auction until completion, or a physical document must be provided stating the disclosure documents can be viewed by using a stated electronic link.
- If the auction is conducted electronically, a copy of the disclosure documents or a link to the disclosure documents must be available in the same electronic medium being used to conduct the auction from the start of the auction until the completion of the auction.
WHO CAN SIGN THE FORM 2 DISCLOSURE STATEMENT?
Section 97 of the Property Law Act 2023 provides that anything required to be done by a seller may be done personally or by an authorised agent. Accordingly, a seller, agent or solicitor can arguably sign the Disclosure Statement – it would however be prudent for agents to record the authority in writing.
5. PROACTIVE STEPS SELLERS CAN TAKE
If you or your clients are thinking of selling, it is worthwhile starting to compile the following information in relation to the property:
- Details of any unregistered encumbrances – for example, unregistered lease, access agreement, unregistered mortgage, tenancy agreement (copies of the agreements will be required).
- If the property has been subject to a tenancy agreement in the past 12 months, evidence of the date of the last rental increase.
- Most recent rates and water rates notices.
- Notices of any intention to acquire/resume the property or part of the property, notices related to contamination and environmental protection, any show cause or enforcement notices received under the Building Act or Planning Act and/or any notices the seller has received from a local, State or Commonwealth government, a court or tribunal, or other competent authority, requiring work to be done or money to be spent in relation to the property.
- If unlicensed building works have been completed within the past 6 years, the seller must provide an owner builder notice.
- Sellers should also apply for an ATO Clearance Certificate from the following link: https://www.ato.gov.au/single-page-applications/frwt-certificate
We will be able to order the relevant searches but will require the Seller to provide us with the above (if applicable).
