Major changes relating to the purchase and sale of property in Queensland came into effect on 1 August 2025.
Queensland’s new seller disclosure scheme changed the way information must be provided when property is sold. The scheme requires sellers to provide buyers with prescribed disclosure information before the buyer signs the Contract.
Traditionally, it has been up to the Buyer to satisfy themselves that a property was ‘right for them’ by doing their due diligence and obtaining relevant searches – the old adage of “let the buyer beware!”.
Under the new regime, the Seller must provide the Buyer with a disclosure statement and relevant prescribed documents before the Buyer signs the Contract.
What is Queensland’s seller disclosure scheme?
The mandatory seller disclosure scheme was introduced under the Property Law Act 2023 and commenced on 1 August 2025.
The scheme applies to existing residential property, commercial property and vacant land, subject to limited exceptions.
Before a contract for the sale of a lot is signed by the Buyer, the Seller must provide a disclosure statement and any prescribed certificates applicable to the property.
What must a Queensland seller disclose?
The seller disclosure statement, known as Form 2, contains prescribed information about the Seller and property. Depending on the property, this can include information relating to title, encumbrances, leases and other matters specified under the legislation and regulations.
The Queensland Government’s approved seller disclosure statement (Form 2) also makes clear that the statement does not cover every matter a Buyer may need to investigate.
What happens if the Seller does not disclose correctly?
If the Seller fails to provide the required disclosure statement before the Buyer signs the Contract, the Buyer may have a right to terminate the Contract before Settlement.
There can also be circumstances where a Buyer may terminate if the Seller provided a disclosure statement that was inaccurate or incomplete in relation to a material matter affecting the property.
However, the right to terminate is not automatic in every case. Section 104 of the Property Law Act 2023 sets out specific requirements, including circumstances where the Buyer was unaware of the correct position when signing the Contract and would not have entered into the Contract had they known the correct position.
This means the accuracy and completeness of the Seller’s disclosure can have significant consequences for a property transaction.
Buyers still need to do their own due diligence
The new seller disclosure scheme does not mean that a Buyer can simply rely on the disclosure statement instead of making their own enquiries.
The approved disclosure statement specifically warns that it does not include information about certain matters, including:
- flooding or other natural hazard history;
- the structural soundness of the building or pest infestation;
- the current or historical use of the property;
- current or past building or development approvals;
- 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.
Buyers should therefore continue to make appropriate enquiries and obtain relevant searches and inspections before committing to a property purchase. The Form 2 disclosure statement itself encourages Buyers to make their own enquiries about these matters.
Why the new rules matter for Sellers
No doubt, a Buyer who is ‘locked in’ to an unconditional contract and then gets cold feet (or finds a more favourable property elsewhere), will carefully scrutinise the disclosure statement and the Seller’s information provided, to see if there is an opportunity to get out of the Contract.
Often the Seller needs the funds from their sale to buy their new home. Sellers should obtain legal advice to ensure their obligations are met, to avoid a deal ‘falling over’ at the last minute.
Preparing the disclosure documentation early can also help identify issues before a property is placed under contract, rather than discovering a problem when the transaction is already underway.
What should Sellers do before entering into a Contract?
- Understand the disclosure requirements. Determine what disclosure statement and prescribed documents apply to the property.
- Gather the required property information. Obtain the relevant title and property documents needed to complete the disclosure statement.
- Check the information carefully. The disclosure statement must contain information that is true at the time it is given to the Buyer.
- Obtain legal advice where necessary. A solicitor can help identify the disclosure requirements that apply to the particular property and transaction.
- Provide the disclosure before the Buyer signs. Timing is critical under the new regime.
Why Legal Advice Can Help
The seller disclosure scheme creates important obligations for Queensland property sellers. A failure to comply, or the provision of inaccurate or incomplete information in circumstances covered by the legislation, can create significant uncertainty for a transaction.
Obtaining legal advice before a property is placed under contract can help Sellers understand their obligations, prepare the required disclosure documentation and reduce the risk of problems arising later in the transaction.
How We Can Help
If you are selling property in Queensland, our property law team can advise you about the seller disclosure requirements that apply to your transaction and help you prepare for the sale.
Contact us for legal advice about buying or selling property in Queensland and the obligations that apply to your particular circumstances.
FAQs About Queensland’s Seller Disclosure Scheme
When did Queensland’s seller disclosure scheme start?
Queensland’s mandatory seller disclosure scheme commenced on 1 August 2025 under the Property Law Act 2023.
Does the seller disclosure scheme apply to residential property?
Yes. The scheme applies to existing residential property, as well as commercial property and vacant land, subject to limited exceptions.
Does a Queensland seller have to disclose information before the contract is signed?
Yes. The Seller must provide the required disclosure statement and applicable prescribed documents before the Buyer signs the Contract for sale.
Can a buyer terminate a Queensland property contract if the seller did not disclose something?
A Buyer may have a right to terminate before Settlement if the Seller failed to provide the required disclosure or provided inaccurate or incomplete disclosure in circumstances covered by section 104 of the Property Law Act 2023. The right to terminate depends on the particular circumstances and is not automatic in every case.
Does the seller disclosure statement replace a buyer’s property searches?
No. Buyers should still conduct appropriate due diligence. The approved disclosure statement does not include information about a number of matters, including flooding history, structural soundness, pest infestation, development approvals, planning restrictions and asbestos.
Should a seller obtain legal advice before selling property in Queensland?
Obtaining legal advice early can help a Seller understand the disclosure requirements that apply to the property and prepare the necessary documentation before entering into a Contract.
Seller Beware!