The Ultimate Guide to Queensland Seller Disclosure Statements

Selling a property in Queensland is complex. Furthermore, new laws are making things more transparent. Sellers now face mandatory disclosure requirements. The goal is to provide buyers with key information upfront. This new system, which began on 1 August 2025, changes the landscape completely. This guide explains everything you need to know. Sellers and their agents must understand this. Buyers also benefit from these new rules.

Understanding the New Seller Disclosure Regime

Queensland's new property laws are a significant shift. The Property Law Act 2023 introduces this seller disclosure scheme. Before this, Queensland had limited disclosure rules. Now, a seller must give a buyer a complete disclosure statement. This must happen before the buyer signs the contract. This new scheme applies to freehold land sales. However, there are some limited exceptions.

What is a Queensland Seller Disclosure Statement?

A seller disclosure statement is a legal document. It is also known as Form 2. This form contains crucial details about the property. It must be filled out accurately. The information must be true when given to the buyer. This statement must be signed by the seller. Electronic signatures are now accepted.

Key Information for Your Disclosure Statement

Preparing a full and accurate statement is vital. Consequently, sellers must gather many documents. The statement requires specific information. This includes the seller's name and property address. It also includes the lot-on-plan description.

You must also disclose unregistered encumbrances. This includes things like informal leases. Statutory encumbrances must also be noted. The property's zoning is another key detail. You must mention any proposed transport infrastructure. Any notices of intention to resume land must be disclosed.

Finally, the statement must mention land contamination. This applies if the property is on a register. Likewise, you must disclose if an owner-builder permit was used. This applies to building work in the last six years.

Required Prescribed Certificates and Documents

In addition to the statement, certificates are mandatory. Sellers must provide these documents to buyers. The list of certificates is comprehensive.

A current title search is required. Furthermore, a copy of the registered plan is needed. For units or townhouses, you need a body corporate certificate. This must be accompanied by the community management statement. Similarly, a pool safety certificate is needed if applicable.

Other documents may be required. This depends on the specific property. These documents should be current. You cannot simply use old searches. It is best practice to attach them to the statement. This provides clear evidence of compliance.

The Importance of Accurate Disclosure

The new laws flip the "buyer beware" principle. Now, the burden is on the seller. Providing inaccurate information has serious consequences. It is not just about honest mistakes. Deliberately withholding material facts is a big risk.

A "material matter" is not explicitly defined. However, it means something that affects the buyer's decision. If the disclosure is incomplete, the buyer has rights. They can terminate the contract before settlement. They must prove they would not have signed.

Consequences of Non-Compliance

Failure to comply carries significant risk. A buyer can terminate the contract. This right applies at any time before settlement. The buyer gets a full deposit refund, with interest. This right cannot be waived by contract. Any clause trying to override it is invalid.

Buyers can also seek damages. They may sue for compensation. This is for losses caused by non-disclosure. Examples include undisclosed structural issues. Misleading or deceptive conduct claims are possible. The financial liability for sellers can be massive.

Agents also face risks. They can lose their commission. There is also potential liability under Australian Consumer Law. Legal scrutiny of their practices is a real possibility.

What is Not Included in the Disclosure?

The disclosure scheme has its limits. The statement does not cover all issues. For instance, it does not include structural soundness. General defects are not covered. This includes pest infestations. Flooding history is not on the list. Past or present building approvals are not required.

Therefore, buyers must still do their due diligence. They should conduct their own searches. A building and pest inspection is still crucial. The disclosure scheme is a starting point, not the full picture.

How to Prepare a Queensland Seller Disclosure Statement

Preparation is key to a smooth sale. Start early to avoid delays. You can prepare the form yourself. Many sellers use a solicitor or conveyancer. They can assist in gathering documents. Real estate agents can also help.

Gather all necessary information first. Obtain all prescribed certificates. Check that all documents are current. Ensure the disclosure statement is fully complete. Finally, make sure the statement is signed.

You must give the documents to the buyer. This must happen before they sign the contract. You can deliver them in person. Likewise, email or post is acceptable. It is important to keep proof of delivery. This can be a read receipt or signed acknowledgement.

Exceptions to the Disclosure Regime

There are a few exceptions to the rules. These exceptions are very specific. For example, some high-value transactions. If the sale is over $10 million, a waiver can be used. This waiver must be provided by the buyer. Sales to government entities can also be exempt.

Certain related-party sales are excluded. Boundary realignments also have an exception. Sales arising from an option agreement have specific rules. It is always wise to seek legal advice. Do this to determine if an exception applies.

The Role of Legal and Real Estate Professionals

Property sales involve many parties. Solicitors, conveyancers, and agents are vital. Their role is now more important than ever. They must understand the new laws.

A seller's solicitor can help prepare the statement. They ensure compliance with the new Act. For buyers, a solicitor can review the documents. They can identify any potential issues. Real estate agents must also be knowledgeable. They guide sellers through the process. They must also manage buyer expectations.

Final Thoughts for a Seamless Sale

The new disclosure laws are a positive change. They promote transparency in property sales. Sellers who comply will have a smoother process. This minimizes the risk of contract termination. Buyers also get more protection.

Early preparation is the most important step. Don't wait until the last minute. Work with professionals who understand the new Act. By following these steps, you can sell your Queensland property with confidence. Furthermore, you will avoid costly disputes. This new regime is a clear win for the Queensland property market.

Contact MINT LEGAL for all assistance on 0452441583.