Seller Disclosure - 'Buyer Beware' No More?

Buyer Beware no more?  Seller Disclosure - The Impact on Selling a Property from 1 August 2025

From 1 August 2025, all property sales in Queensland will be subject to a new mandatory Seller disclosure framework established by the Property Law Act 2023 (Qld).  This significant change introduces a framework for Seller disclosure across Queensland, with the intention of increasing transparency in property transactions by ensuring Buyers receive key information in respect of the property prior to signing the Contract.  This regime applies to all Contracts entered into on or after 1 August 2025 - including both residential and commercial properties.

For Sellers, understanding these new requirements is essential to avoid disputes within the conveyance.

What does the change mean for Sellers?  Why is it important?

The new regime imposes an obligation on Sellers to disclose key information in respect of the property before the Buyer signs the Contract. Historically in Queensland, the ‘buyer beware’ principle applied. The Buyer was expected to undertake their own due diligence in respect of the property they were purchasing.

For Sellers, the consequences of non-compliance can be significant. If a Seller:

1. does not provide the Form 2 Seller Disclosure Statement (“Disclosure Statement”) or prescribed certificates to the Buyer prior to the Buyer signing the Contract; or 

2. if the information within the Disclosure Statement or prescribed certificates is materially inaccurate or incomplete (to the extent that if the Buyer had been aware of the state of affairs, the Buyer would not have signed the Contract);

then the Buyer may have a right to terminate the Contract at any time prior to settlement and receive their deposit (if any) back. This termination right can be exercised even after the Buyer has paid a deposit or satisfied other Contract conditions (such as finance or building and pest).

There are some exceptions to the regime, such as: transfers between related entities, transfers made pursuant to orders of a Court, boundary re-alignments or where the purchase price exceeds $10 million (among others). The Buyer and Seller cannot ‘contract out’ of the framework. In most scenarios, compliance with the regime will be mandatory.

What do Sellers need to disclose?

Under the framework, the Seller must provide to the Buyer the completed and signed Disclosure Statement and the prescribed certificates prior to the Buyer executing the Contract.

The Disclosure Statement is divided into six parts, each containing specific categories of information and requiring the annexure of the prescribed certificates:

1. Seller and Property Details

• Seller’s name
• property address
• property lot on plan description/s
• body corporate information (if applicable)

2. Title Details, Encumbrances and Residential Tenancy Agreements

• copies of the current title search and survey plan for the property
• details of registered, unregistered and statutory encumbrances, such as easements, covenants, leases (both registered and unregistered) or access rights
• tenancy information including details as to the last rental increase

3. Land Use, Planning and Environment

• property zoning – including under the local planning scheme, or state / federal schemes (if applicable)
• copies of notices received in respect of transport infrastructure proposals and intended resumptions
• environmental management or contamination land notices or registrations
• copies of tree orders or neighbourhood dispute notices
• whether the property is included in the World Heritage list or other environmental protection legislation

4. Buildings and Structures

• whether the property has a swimming pool and if so, the provision of the relevant certificates
• details of any unlicensed owner-builder work
• show cause, enforcement or rectification notices issued by local authorities that remain unsatisfied

5. Rates and Services

• the costs of the Seller’s most recent rates and water charges for the property (excluding any discounts or concessions)

6. Community Titles or BUGTA Schemes (if applicable)

• if the property is within a body corporate, then a copy of the Community Management Statement (CMS) for the property and body corporate certificate/s must be annexed.

The Seller Disclosure Statement and prescribed certificates must be accurate at the time they are provided to the Buyer. While Buyers are not legally required to sign the Disclosure Statement, we recommended that they do so to acknowledge receipt of the same.

What the Disclosure Statement does not cover

It is important to note that the disclosure framework is not all-encompassing. Specifically, the regime does not require the Seller to provide the Buyer information in respect of:

• flooding zones or history of flooding for the property
• vegetation management zoning
• pest infestations (such as the existence of termites or termite damage) or the state of any buildings on the property
• the energy efficiency of the property
• the presence of asbestos within the property
• building approvals (or lack thereof) (unless subject to a requisition or enforcement notice)

Accordingly, Buyers should still undertake their own due diligence investigations, both to verify the information set out in the Seller’s disclosure and cover off on information not required to be provided, but still important to know - such as building and pest reports and flood and zoning searches prior to settlement.  

Who prepares the Disclosure Documents?

While the obligation rests with the Seller, the disclosure documents can be prepared by:

• the Seller personally;
• the Seller’s solicitor; or
• the Seller’s real estate agent.

If there is any uncertainty about what needs to be disclosed, Sellers should seek legal advice to ensure compliance and avoid disputes.

Need Assistance?

If you’re selling property in Queensland, our experienced property law team can guide you through the new disclosure requirements and help ensure your sale proceeds smoothly.  Contact us on (07) 4963 2000 or through the contact form below.