The Property Law Act 2023 (“the Act”) which comes into effect as of 1 August 2025 introduces a new Seller Disclosure regime. “Seller Disclosure” is information that the Seller of a property is required to disclose to a Buyer. In Queensland, there have previously been no formal Seller Disclosure requirements other than for Community Title Scheme, and ‘Off the Plan’ sales. The responsibility to investigate the property has historically been placed on the Buyer.
The commencement of the Seller Disclosure Regime aims to provide Buyers with more information about the property’s condition, history and potential issues by requiring the Seller to give a Buyer with a Disclosure Statement along with copies of a prescribed list of searches / certificates (at their cost) before a Contract is signed.
What is required?
The Seller must provide disclosure by completing the approved Form 2 Disclosure Form (“Disclosure Form”) and providing this to the Buyer prior to the Buyer entering into the Contract.
The information required to be complete and provided on the Disclosure Form is as follows:-
- Seller’s name, property address and lot-on-plan description;
- details of any unregistered encumbrances and statutory encumbrances which will continue to affect the property after settlement;
- whether the property has been subject to a residential tenancy agreement during the prior 12 months and if so, the date of the last rental increase;
- the property’s zoning;
- whether any proposed transport infrastructure or notices of intention to resume may affect the property;
- Heritage information;
- whether the property is recorded on the Contaminated Land Register or Environmental Management Register;
- details of any unlicensed building work carried out on the property under an owner builder permit in the last 6 years;
- whether there is a tree order or application under the Neighbourhood Disputes (Dividing Fences and Trees) Act 2011 affecting the property;
- swimming pool information;
- whether there are any unsatisfied show cause notices, enforcement notices or other notices from an authority or Court requiring work to be done or money to be spent in relation to the property; and
- information about rates and water charges.
The Seller will not be required to give information about:-
- flooding history;
- structural soundness of the building or pest infestation;
- current or historical use of the property;
- current or past building approvals for the property;
- limits imposed by planning laws on the use of the land;
- services that are or may be connected to the property; and.
- the presence of asbestos within buildings or improvements on the property.
Sellers must always provide a copy of the title search and registered plan alongside the Disclosure Form. Depending on what information is contained within the Disclosure Form, Sellers may also be required to provide certain additional prescribed certificates to Buyers prior to them entering into a Contract.
There is also additional information and documents that are required to be provided if the property being sold is part of a community titles scheme/body corporate.
What if a Seller doesn’t comply?
If Sellers do not comply with their disclosure obligations, there are serious consequences and risks for the completion of Contracts.
The new Act provides that:-
- if the Seller fails to provide the Disclosure Form as and when required– the Buyer has a termination right up to settlement; or
- if the Seller fails to provide a prescribed certificate as and when required – the Buyer has termination right up to settlement; or
- if the Disclosure Form is provided, however it is inaccurate or incomplete – the Buyer has a termination right up to Settlement, but only if they are materially prejudiced and were not already aware of the inaccuracy prior to entering into the Contract and as such, would not have entered into the Contract if they were aware.
It is therefore extremely important that Sellers are accurately undertaking their disclosure obligations.
Parties cannot contract out of the Seller Disclosure obligations by including a special condition in Contracts.
Does the regime always apply?
Majority of Contracts for the sale of freehold land will be subject to the new disclosure regime. There are very limited circumstances where the disclosure regime does not apply – for example, if related parties are entering into a contract, the Buyer may waive their right to disclosure by providing notice to the Seller prior to entering into a Contract.
Timing
If Sellers are not preparing Disclosure Forms with sufficient time before proceeding to the draft Contract stage, the preparation may delay the Contract being entered into. This is particularly the case where information and documents are needing to be obtained from third parties such as local governments.
We recommend that Sellers plan ahead and instruct our office to prepare the Disclosure Forms with sufficient time to avoid delays in the Contract and sale process.
The disclosure also needs to be accurate at the time it is delivered to the Buyer so it is important to ensure that Sellers are regularly considering whether their prior prepared Disclosure Forms need to be updated to remain accurate when being provided to Buyers.
If you have any questions about Seller Disclosure, or require assistance to have your Disclosure Form completed for a sale, please contact our property law team.
