Detailed Analysis of the New Seller Disclosure Statement in Queensland

Background and Rationale

As of 1 August 2025, Queensland introduces a mandatory Seller Disclosure Statement (Form 2) under the Property Law Act 2023, aligning with other Australian states like New South Wales and Victoria. This regime aims to enhance transparency in property transactions, empowering buyers to make informed decisions and reducing post-settlement disputes.

Previously, Queensland had limited disclosure requirements, but now, sellers must provide comprehensive details to buyers before contract signing, except in specific exempt cases like off-the-plan sales or sales by mortgagees in possession.

This shift reflects a decade-long consultation process, as noted by the Real Estate Institute of Queensland (REIQ) Statutory Seller’s Disclosure in Queensland, ensuring fairness and consistency in property sales.

Understanding the Seller Disclosure Statement (Form 2)

The Seller Disclosure Statement, or Form 2, is a legally required document effective from 1 August 2025 for all property sales in Queensland, covering residential, commercial, industrial, and agricultural properties.

The official template is available on the Queensland Government Publications Portal Queensland Government – Statutory Seller Disclosure Scheme. Sellers must use this exact form to ensure compliance, as it consolidates existing common law, statutory, and contractual obligations into one comprehensive disclosure requirement.

Mandatory Disclosures: What Sellers Must Include:

The Form 2 requires detailed disclosures to inform buyers fully. Below is a breakdown:

These disclosures ensure buyers understand the property’s legal and financial status, reducing the risk of disputes.

Non-Mandatory Disclosures: Buyer’s Responsibility

While certain disclosures are not mandatory, sellers should be aware to avoid misleading buyers, which could lead to legal issues. These include:

Flooding: Sellers aren’t required to disclose unless providing misleading information. Buyers should conduct their own enquiries, especially in flood-prone areas, as emphasized by Foundation Solutions Buyer Beware - New Property Law in Qld: Seller Disclosures.
Asbestos: The form includes a general warning, but sellers don’t confirm presence. Buyers should arrange inspections if concerned.
Infrastructure/Planning Proposals: Only official notices, like transport proposals or resumption notices, need disclosure. Speculative information should be avoided.

Importantly, structural soundness isn’t covered, so buyers must engage professionals for assessments, a critical point for informed decision-making.

Signature and Delivery Requirements

Proper execution of the Seller Disclosure Statement is crucial for legal validity:

• Sellers must sign to confirm accuracy, and buyers must sign to acknowledge receipt before or at contract signing.
• All parties (seller, buyer, agent if involved) must retain signed and dated copies.
• Electronic signatures are allowed, but digital tools like QR codes don’t satisfy proof of delivery, requiring physical or electronic signatures on the document itself, as per the original content.

Failure to meet these requirements can lead to disputes or contract termination, underscoring the importance of diligence.

Common Errors Leading to Termination

Sellers must avoid mistakes that could jeopardize their sale. Common errors include:

• Failing to update the form if material facts change, such as new encumbrances registered after preparation.
• Omitting required documents, like the current title search, seller’s name, or Body Corporate Certificate for community titles.
• Incorrectly assuming exemptions, such as for off-the-plan sales or mortgagee-in-possession sales, without verifying. Exemptions are narrowly defined and require legal advice.
• Delivering the form without the seller’s signature or without the buyer acknowledging receipt at contract time, which can trigger termination rights for the buyer.

These pitfalls highlight the need for thorough preparation and professional guidance.

Preparation and Issuing Process

The responsibility for preparing and issuing Form 2 lies with the seller, though real estate agents can assist, as permitted in Queensland. The process includes:

• Gathering necessary documents, such as title search, rates notices, and Body Corporate Certificate if applicable.
• Completing Form 2 with all required information, which can be signed electronically for convenience.
• There’s no restriction on preparing the form before 1 August 2025, but it applies only to contracts signed on or after that date. Contracts signed before remain under old requirements.

Starting early, especially for properties with complex encumbrances, ensures compliance and avoids last-minute issues.

Impact on Property Sales

The new regime will significantly affect Queensland property transactions:

• It applies to all freehold land sales, ensuring consistency across residential, commercial, and other property types.
• Increased transparency reduces “buyer beware” situations, empowering buyers with critical information upfront.
• Non-compliance risks legal action, including contract termination, emphasizing the need for accuracy.
• With nearly 12 months until commencement, stakeholders have time for education, supported by resources like REIQ factsheets and legal firm guides, as noted by Hamilton Locke New Seller Disclosure Scheme for Property Sales in Queensland.
  

Seeking Professional Assistance

Given the complexity, seeking legal advice is advisable. Lawyers, conveyancers, and agents can help with:

• Preparing and reviewing Form 2.
• Ensuring all documents are attached and exemptions verified.
• Advising on delivery and signature collection best practices.

Conclusion

The new Seller Disclosure Statement, effective 1 August 2025, is a pivotal change for Queensland property sales. It ensures buyers receive critical information, reducing disputes and enhancing fairness. Sellers must understand their obligations, avoid common errors, and seek professional advice to navigate this regime successfully. Accuracy and completeness are key to protecting all parties involved.

Visual Aids for Understanding

While this note cannot include actual charts or drawings, here’s where they could be incorporated:

Flowchart: A step-by-step diagram from deciding to sell to finalizing, highlighting preparing Form 2 and obtaining signatures.

Title Search Example: A mock-up illustrating key sections like owner’s name, encumbrances, and property description.

Roadmap Checklist: A timeline or checklist for sellers, detailing tasks like gathering documents, completing Form 2, and ensuring proper delivery.
These aids would enhance understanding and ensure compliance.
 

Key Citations

Statutory Seller’s Disclosure in Queensland
Queensland Government – Statutory Seller Disclosure Scheme
Buyer Beware - New Property Law in Qld: Seller Disclosures
New Disclosure Requirements for Property Sellers in Queensland
Queensland Seller Disclosure Laws: A Complete Guide for Conveyancers in QLD
New Seller Disclosure Scheme for Property Sales in Queensland
Queensland seller disclosure regime to commence 1 August 2025