Queensland does not have a formal statutory seller disclosure scheme for property sales, unlike other Australian states such as New South Wales and Victoria. Operating under a ‘buyer beware’ approach, buyers currently bear the onus of conducting due diligence and identifying any potential issues when purchasing.
This will all change upon commencement of the Property Law Act 2023 (PLA) on 1 August 2025, which will introduce a new seller disclosure regime in Queensland. By placing strict disclosure obligations on sellers, the aim is for buyers to reap the benefits of increased transparency and consistency in the content and timing of disclosure.
Key Takeaway Points
- A new seller disclosure regime will be introduced in Queensland upon commencement of the Property Law Act 2023 on 1 August 2025.
- Sellers will be required to provide a buyer with a disclosure statement and applicable prescribed certificates, before the buyer signs the contract for the purchase of a lot.
- Sellers cannot contract out of the disclosure requirements, but there are limited exemptions to the disclosure scheme available.
- Buyers will have a termination right if the seller fails to provide the disclosure statement and prescribed certificates, or if the seller makes inaccurate disclosure in relation to a material matter.
The Disclosure Requirement for Sellers
Before the buyer signs a contract for the sale of a lot, the seller will be required to give the buyer:
- a disclosure statement; and
- applicable prescribed certificates.
The seller disclosure regime will apply to all sales of freehold land, including auctions, mortgagee or receiver sales, and sales following the exercise of an option. However, sales for off-the-plan lots will not be subject to these disclosure requirements and will continue to be regulated under the Land Sales Act 1994 and Body Corporate and Community Management Act 1997 (BCCM Act).
The disclosure documents may be given to the buyer either by delivering the documents personally, by post, or by way of an electronic link or electronic communication.
What is a Disclosure Statement?
The approved form for the disclosure statement (Statement) will be PLA Form 2 Seller Disclosure Statement. The information included must be accurate at the time the Statement is given to the buyer, and signed by the Seller either by wet ink or digitally.
The Statement must include the following:
• seller and property information;
• whether the lot is included in a community titles scheme or a Building Units and Group Titles Act 1980 (BUGTA) scheme;
• details of unregistered encumbrances;
• information in relation to zoning or transport infrastructure proposals;
• application or order made in relation to a tree on the lot;
• contamination, environmental protection, and heritage details;
• whether there is a relevant pool for the property;
• any notice of intention to resume the lot;
• rates and water services information; and
• any rent increase in the previous 12 months if the lot was subject to a residential tenancy agreement or rooming accommodation agreement.
The approved form additionally includes warnings and statements to the buyer about information not included in the Statement, and the implications of purchasing a property in a community titles scheme or BUGTA scheme.
What are Prescribed Certificates?
The following documents are prescribed certificates:
• Title search and survey plan;
• If the lot is in a community titles scheme – the community management statement and either the BCCM Form 33 or Form 34 body corporate certificate (depending on what regulation module applies);
• If the lot is in a BUGTA scheme – the BUGTA Form 18 body corporate certificate.
• Pool compliance certificate;
• Any notices or work orders from any government, building, environment or planning authority; and
• Any documents in relation to transport infrastructure proposals, an intention to resume the lot, or application or order in relation to a tree on the lot.
Where a body corporate certificate is required, the Body Corporate and Community Management (Body Corporate Certificates) and Other Legislation Amendment Regulation 2024 outlines the prescribed matters that must be included in the certificate.
Exceptions to Disclosure Requirements
Contracting out of the disclosure requirements is prohibited. However, there are specific exceptions that will exempt a seller from complying with the scheme, and these include where the:
• the buyer and seller of the property are related; or
• the buyer is the State, a government, constructing authority, statutory body, or a listed corporation; or
• the seller is a local government exercising its power to sell land to recover overdue rates and charges; or
• the contract price is more than $10 million including GST and the buyer gives the seller a notice waiving compliance.
Consequences for the Failure to Disclose
The buyer will have the right to terminate the sale contract if the seller fails to provide the disclosure statement or prescribed certificates, or makes inaccurate disclosure in relation to a material matter. This termination right exists until settlement, incentivising sellers to make full and correct disclosure.
Next steps
Our Property experts are happy to assist if you have any queries about how QLD’s anticipated seller disclosure regime may affect you / your clients.
