There have been more changes made under the Property Law Act 2023 (QLD) recently, and the main one is the new seller disclosure regime, commencing for all contracts signed by all parties by the 1st of August 2025, therefore, unless both parties sign a Contract before that date, the seller disclosure requirements will apply to the Contract.
The updated framework aims to improve transparency and consistency in property transactions. It requires that crucial information about a property be provided to buyers before they sign a contract, enabling them to make more informed choices and minimising the likelihood of unexpected issues down the track and by this, helping them make more informed decisions and reducing the risk of them finding out issues and potentially terminating later down the track once the contract is signed.
Whether engaging in the purchase or sale of residential property, it is imperative to understand the implications of these changes. Being well-informed enhances preparedness, ensures stronger legal protection, and fosters greater confidence throughout the transaction process.
Some of these new requirements and sections of are set out below in this blog.
New disclosure requirements by the Seller
Sellers will be required to provide information for transparency about the property to buyers, prior to the execution of the contract.
Currently, buyers make these enquiries themselves after the contract is executed and usually during the cooling off or the due diligence period.
The documents the seller is going to be providing to the buyer before they sign a contract are:
- a completed and signed Form 2 Seller Disclosure Statement, which can be prepared ether by the Seller (strongly not recommended if this is not your area of expertise and it is important you always seek legal advice), an Agent or a Lawyer; and
- the relevant searches and certificates required to be provided and relevant to the property.
This does mean that the outlays for sellers is going to be increasing, however on the upper hand, the buyer is advised of any potential issues about the property before the contract is signed, minimising the ability for a buyer to terminate the contract once it is signed, should all the relevant disclosures and certificates be correctly provided.
What is the information that is to be disclosed by a Seller?
The seller will need to provide buyers, prior to execution of the contract, with documents and disclosures as follows, under the Property Law Regulation 2024:
- Seller and Property Details, such as the owner’s legal name and the address of the property.
- Title Details and Encumbrances, such as the legal description of the property and any encumbrances on title (like easements or covenants and tenancy history).
- Land Use, Planning and Environment details from government entities such as council, transport infrastructure, environmental land registers and others.
- Buildings and Structures such as information on pool safety compliance, building compliance and show cause or enforcement notices from local authorities.
- Rates and Services, which are rates and water bills and information.
- Community Titles or BUGTA Schemes which are the community management statements and body corporate certificates or explanatory statements.
Can Buyers terminate the Contract still if this information is disclosed?
No, buyers cannot terminate the Contract if the information is already disclosed, however they can terminate the contract, up until the settlement date, if:
- the disclosure documents are not provided correctly by the sellers; or
- buyers uncover ‘material inaccuracies’ that were not initially disclosed once they order their own searches.
The inaccuracy must be such that the buyer would not have signed the contract had it been aware of the situation obtained in those search results in relation to the property.
The new disclosure statement does not cover everything, such as building and pest inspections on the property, town planning enquiries, other searches which may be ticked as ‘no’ by the seller to disclose or not required to be disclosed, but the buyer may still want information on, for example on items such as:
- Flooding or natural hazard history
- Building or development approvals
- Utility connections
Buyers are still recommended to carry out their own due diligence enquiries still either before entering into the contract, or before settlement.
What sales are excluded from the above?
Sales which are exempt from the new seller disclosure regime are:
- Sales between related parties where the buyer voluntarily waives the requirement.
- Sales between co-owners or neighbouring landowners when the purpose is a boundary realignment.
- Sales mandated by a court order.
- Transfers to personal representatives or beneficiaries under a will or due to the death of the property owner.
- Contracts stemming from an option where the seller previously disclosed information to the buyer when entering into the option for when the buyer under both the contract for the sale of the lot and the option for the sale of the lot are the same. If a nominee is appointed under an option, separate disclosure is necessary before the option is exercised.
- Sales with a price exceeding $10 million (including GST) where the buyer consents to waive the requirement.
- Sales by entities such as Brisbane City Council or another local government to recover overdue rates or charges. In such cases, the buyer is notified that the seller is exempt from providing the disclosure statement and required certificates.
- Off the plan sales.
- Sales by the state where the buyer has been the property’s tenant for at least three years, and the buyer receives a notice that the seller is not obligated to provide the disclosure statement and required certificates.
- Sales to buyers who are publicly listed corporations (or subsidiaries of publicly listed corporations), the state, statutory bodies, or constructing authorities under the Acquisitions of Land Act 1967 (Qld).
Can FC Lawyers help you with the new seller disclosure regime?
Yes, we sure can.
There are many steps you must take once a contract is signed moving forward and this is why it is crucial that you speak with us before signing a contract, so that you are well prepared for the next steps in the usually fast paced conveyancing process.
Contact our team today to speak with us regarding any property matters.
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