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. New Queensland laws are coming in on August 1st 2025, that are aiming to make things clearer for buyers and sellers. These changes are part of the new Property Law Act 2023 and will introduce a standardised seller disclosure regime for all contracts involving registered property lots.
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. Until now, disclosure rules have varied, leading to confusion and potential disputes.
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 Sellers Must 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)
- Prescribed Certificates (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.
Who Is Exempt from Giving Disclosure?
Certain transactions are exempt from these disclosure requirements, including:
- 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?
No. Sellers only need to make sure the information is accurate when first given. They are not required to update it, but if major changes occur and are not disclosed, the seller may be liable for misleading conduct.
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.
Key Aspects of the Seller Disclosure Regime:
- Mandatory Disclosure Statement: Sellers will be required to provide a comprehensive disclosure statement to prospective buyers before the contract of sale is signed. This statement must include:
- Seller and property details.
- Information on unregistered encumbrances.
- Zoning classifications and any planning restrictions.
- Details of any environmental notices or contamination issues.
- Pool safety compliance certificates, if applicable.
- Information on any ongoing disputes or legal notices affecting the property.
- Recent rates and water service charges.
- For properties previously under residential tenancy, details of any rent increases in the past 12 months.
- Prescribed Certificates: Alongside the disclosure statement, sellers must provide specific certificates, such as:
- Title search and survey plans.
- Body corporate certificates for properties within community titles schemes.
- Pool compliance certificates.
- Copies of relevant notices or orders from government authorities.
- Timing and Method of Disclosure: These documents along with the Form 2 Seller Disclosure Statement must be provided to the buyer before the contract is signed. They can be delivered personally, sent by post, or provided electronically with the buyer’s consent. For auctions, documents must be provided 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.
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.
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.
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.
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