Important News For Sellers: Mandatory QLD Seller Disclosure Applies From 1 August

New laws in Queensland make it mandatory for commercial and residential property sellers to complete formal disclosures before any contract is signed. From 1 August, the Property Law Act 2023 will come into effect, replacing the 50-year-old Property Law Act 1974 and introducing a compulsory seller disclosure requirement.

The law change marks a significant move away from the historical ‘buyer beware’ model and introduces stricter obligations for sellers to provide upfront and accurate property information. 

The consequences for non-compliance can be significant, including the right of the buyer to terminate the contract. This new approach also brings Queensland legislation in line with other states.

SELLER DISCLOSURE REQUIREMENTS

Under the new laws, sellers must deliver a completed  Form 2 Seller Disclosure Statement and supporting documents to prospective buyers before a contract is signed. This applies to all relevant property sale contracts from 1 August 2025with the exception of off-the-plan sales.

Form 2 is a statutory document that consolidates essential information about the property and must be signed by the seller before being given to the buyer. It is divided into sections, each detailing key facts about the property. Required disclosures include:

• Seller’s name, property address, lot and plan description
• Current title search and survey plan
• Tenancy history and rent increases (if applicable)
• Planning and land use details such as zoning, heritage listings, and notices of infrastructure proposals or resumptions
• Building and structural information 
• Rates and water charges
• Registered and unregistered encumbrances (eg. easements, leases)
• Statutory encumbrances (eg. infrastructure access rights)
• Body Corporate Certificate where applicable for community title schemes.

IMPORTANT INFORMATION FOR SELLERS

Compliance with the new regime involves more than just completing a form. Sellers should be aware of the legal and procedural responsibilities involved:

• All disclosure information must be true and accurate at the time it is given to the buyer
• Form 2 must be accompanied by prescribed supporting documents 
• The buyer must receive the documentation before signing the contract of sale 
• Non-compliance may give the buyer a legal right to terminate the contract.

Sellers can ask their solicitor to prepare the form. While agents can help with this process, it is important that sellers and buyers seek independent legal advice when preparing and reviewing this document.  

This process could slow down negotiations so it’s a good idea to have documentation prepared at the listing stage.

CONSEQUENCES FOR FAILING TO COMPLY

Two termination rights are introduced under Section 104 of the Act. These apply regardless of the parties’ intentions or any special conditions in the contract.

The buyer of the property has rights to terminate the sales contract at any time prior to settlement in two situations: 

• Failure to provide the disclosure statement: If Form 2 and supporting documents are not given to the buyer before they sign the contract, the buyer may terminate at any time before settlement.
• Inaccurate or incomplete disclosure: If material information is missing or incorrect and the buyer can demonstrate it influenced their decision to sign, they may also terminate, subject to satisfying three specific criteria.

In either case, the buyer is entitled to a full refund of any deposit paid.

To help reduce these risks, you may be asked to review the initial disclosure statement prior to any offers being presented. 

EXEMPTIONS TO THE DISCLOSURE REGIME

The seller disclosure will be required to be completed for most real estate transactions. Some examples of when an exemption may apply include:

• Sales between related parties where the purchaser waives the right to disclosure
• Court-ordered sales
• Transfers to a personal representative or beneficiary under a will
• Where the seller is a local government and the sale is to recover overdue costs
• Where the purchaser is a publicly listed company, the state or a statutory body.

WHERE TO OBTAIN MORE INFORMATION

If you’re preparing for a sale, it’s important to be aware of these changes. When it comes to completing the Form 2, you can ask your solicitor to prepare the form on your behalf.

To learn more, speak with our team or visit the links below for additional resources:

Seller disclosure in Queensland: General information for sellers

New seller disclosure regime in Queensland