If you are currently looking to sell property in Queensland or are thinking of selling property in the near future, then this article applies to you. From 1 August 2025, major changes to property sale contracts as part of the new Property Act 2023 (Qld) will take effect in Queensland. Here’s what you need to know.
At the time of writing, the current authority in Queensland for all property transactions is the Property Act 1974 (Qld). However, the introduction of the new Property Act 2023 (Qld), coming into force on 1 August 2025, will aim to clarify existing uncertainties to ensure smoother dealings between buyers and sellers. Currently, buyers’ disclosure obligations have varied, resulting in confusion, disputes, and the breaking down of agreements. These new provisions therefore aim to guarantee that buyers receive valuable and accurate information about a property before they sign a contract.
What this means for you as a potential seller is that after August 1st you will be required to provide prospective buyers with a completed and signed disclosure statement, along with prescribed certificates, before the buyer signs the contract of sale. This law will apply to residential and commercial properties.
Why Are These Changes Happening?
The goal of the reforms is to ensure that buyers receive valuable and accurate information about a property before they sign a contract. It also aims to make sure costs are shared fairly between buyers and sellers.
When Do These Changes Start?
- The new laws apply to contracts signed on or after 1 August 2025.
- They do not apply to contracts or option agreements made before that date.
- There’s no retrospective effect — older contracts are not affected.
What Must Sellers Do?
Under the new law, a seller must provide two key documents before the buyer signs a contract:
- A Seller Disclosure Statement (in the official Form 2 format); and
- Prescribed Certificates (such as a title search, plan of the land, and council notices).
This is required for the sale of any registered lot — for example, a house, apartment, or vacant land with freehold title.
What Does the Seller Disclosure Statement Detail?
The Seller Disclosure Statement is a six-part document which must, by law, be completed and provided by a seller to a prospective buyer before a buyer signs any contract pertaining to the sale of property. Under the Statement, a seller must enclose:
- Seller and property details.
- Title details, existence of encumbrances and information on unregistered encumbrances, and existence of any residential tenancy or rooming accomodation agreements.
- Any relevant land use, planning, or environmental notices the property is subject to.
- Any buildings or improvements upon the land (e.g., a pool or an extension).
- Rates and charges, including water services.
- Existence and details (if relevant) of any Community Title or BUGTA schemes.
- For properties previously under residential tenancy, details of any rent increases in the past 12 months.
Furthermore, the Statement must be in the relevant Form 2 format, as approved by the Queensland Government, signed by the seller or their agent, and accurate at the time that it is given to the buyer.
The official Form 2 Statement can be found here: QLD Government Form 2.
What are Prescribed Certificates?
In completing the Seller Disclosure Statement, the seller must provide the buyer with all relevant detailed certificates (also known as prescribed certificates). These certificates give buyers official details about the property, and may come in the form of:
- Title search and survey plan.
- Zoning, environmental, or heritage notices.
- Pool safety certificate.
- Council rate and water notices.
- Copies of relevant notices or orders from government authorities.
Furthermore, for units in body corporate schemes, the seller must also provide:
- Community Management Statement.
- Body Corporate Certificate.
- For some older schemes, a BUGA Certificate and By-laws.
Who Is Exempt from Giving Disclosure?
The seller must give these documents before the buyer signs a contract. They can be delivered personally, sent by post, or provided electronically with the buyer’s consent. Where the property is attempted to be sold via auction, the relevant documents must be given to all registered bidders before the auction. For options to buy, disclosure must be given before the option is signed — and repeated if the buyer changes.
Certain exemptions may apply. The Property Law Act 2023 (Qld) allows flexibilities for certain types of sellers, or if the sale of the property arises in certain situations. Scenarios where disclosure is not required is outlined in Section 100 of the Act, which includes, amongst others:
- Sales between related parties where the buyer waives the disclosure requirement in writing.
- Transactions involving government bodies.
- Sales of property over $10 million where the buyer waives compliance in writing.
- Co-owners transferring between themselves.
- Court-ordered sales.
What Happens if Sellers Get It Wrong? Consequences of Non-Compliance
If a seller fails to provide the required disclosure documents or if the information is inaccurate or incomplete, the buyer has the right to terminate the contract at any time before settlement.
However, to cancel the contract, the buyer must show the mistake is material — meaning it would have affected their decision to buy.
If the contract is cancelled:
- The buyer is refunded their deposit plus interest.
- But the seller doesn’t have to repay things like rent or rates contributions.
If a body corporate certificate is wrong, the buyer cannot sue the seller, but can still cancel the contract.
Do Sellers Need to Update the Disclosure?
Generally, a seller is only required to ensure that information is accurate when it is first given. This means that, where the accuracy of disclosed information varies after it has been provided to the buyer, there is no general obligation by the seller to correct. However, if major changes occur and are not subsequently disclosed, the seller may, in certain scenarios, be liable for failing to disclose these changes. You should seek independent advice from a legal practitioner if you believe that you are, or may be, affected by such a circumstance.
What Does This Mean for Buyers and Sellers?
For buyers, these new laws ensure they get clear, reliable information before committing to buy a property. Buyers will benefit from increased transparency, allowing for more informed purchasing decisions. However, buyers should still conduct their due diligence, as certain aspects, such as flooding history, are not covered in the disclosure statement.
For sellers, it means ensuring all required information is accurately disclosed to avoid potential contract terminations and legal complications. It is imperative then that sellers obtain a lawyer if deciding to sell their property, in order to not risk losing a buyers offer.
It’s crucial for all parties (Sellers, Buyers, Real estate agents, Lawyers, and Property Professionals) involved in property transactions to familiarize themselves with these upcoming changes to ensure compliance and a smooth transition when the new laws come into effect on 1 August 2025.
These new requirements will greatly increase the selling costs for property owners and investors, making early preparation and expert legal guidance more important than ever.
Our solicitors can assist preparing the mandatory disclosure statement and prescribed certificates to help ensure the smooth sale of your property. Contact us at info@wglawyers.com.au or 0433-071-350.
Disclaimer:
The content of this article is provided for general information purposes only and does not constitute legal advice. While every effort is made to ensure the accuracy of the information, it should not be relied upon as a substitute for legal advice tailored to your circumstances. We recommend that you seek independent legal advice before acting on any information contained herein.
External Links and References:
- Important changes to property law in Queensland – Seller’s Disclosure Regime
- Get ready – biggest changes to real estate sales in decades coming soon to Queensland