Buyer beware, begone – the table turn making it the seller’s obligation for disclosure when selling in Queensland

Effective from 1 August 2025, Queensland will implement a new seller disclosure regime under the Property Law Act 2023 and the accompanying Property Law Regulation 2024. This initiative aims to enhance transparency and consistency in property transactions by clearly outlining the obligations of sellers to disclose pertinent information to prospective buyers.

Key Components of the New Seller Disclosure Regime:
 

1. Mandatory Disclosure Documents:
   • Disclosure Statement: Sellers must provide a completed and signed disclosure statement in the approved form before the buyer signs the contract. This statement offers essential information about the property, including any known defects or encumbrances.
   • Prescribed Certificates: Alongside the disclosure statement, sellers are required to furnish specific certificates as prescribed by regulation. These may include documents related to zoning, easements, or other property-specific details.
2. Scope of Application:
   • The disclosure obligations apply to all sales of freehold land in Queensland, encompassing auctions, mortgagee or receiver sales, and sales following the exercise of an option. However, sales of off-the-plan lots are exempt and continue to be regulated under the Land Sales Act 1994 and the Body Corporate and Community Management Act 1997.
3. Delivery of Disclosure Documents:
   • Sellers can provide the disclosure documents either physically or electronically. It is imperative for sellers to ensure that these documents are delivered to the buyer before the contract is signed and to retain evidence of such delivery.
4. Consequences of Non-Compliance:
   • Failure to provide the required disclosure documents, or providing inaccurate or incomplete information regarding a material matter, grants the buyer the right to terminate the contract at any point before settlement. This termination right exists irrespective of whether the buyer has suffered any detriment due to the non-disclosure.

​Implications for Stakeholders:
 

• Sellers: The new regime imposes additional obligations on sellers, necessitating meticulous preparation of disclosure documents to ensure compliance and avoid potential contract termination by buyers. Traditionally real estate agents would be involved in the preparation of sale Contracts however these changes are likely going to require the seller have their lawyer prepare the Contracts and Disclosures. The increased works required by the sellers lawyer will increase the fees payable by the seller. 
• Buyers: Prospective buyers will benefit from increased transparency, enabling more informed decision-making. Nonetheless, buyers are advised to conduct their own due diligence, as the disclosure documents may not encompass all pertinent information.
• Real Estate Professionals: Agents and legal practitioners must acquaint themselves with the updated requirements to effectively guide their clients through the transaction process and ensure adherence to the new regulations.

Conclusion:
 
The forthcoming changes to Queensland's seller disclosure laws signify a pivotal shift towards greater transparency and fairness in property transactions. By mandating comprehensive disclosure from sellers, the legislation seeks to balance the information asymmetry traditionally present in real estate dealings, ultimately fostering a more equitable market environment.

We would encourage you to speak with one of our experienced property lawyers when you first consider selling. These disclosures and documents will take time to prepare and we may need to complete searches to obtain all necessary information which can take weeks to complete.
 
Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. Individuals are encouraged to consult with qualified legal professionals to understand how these changes may specifically impact their circumstances.