The new seller disclosure laws, effective from 1 August 2025 in Queensland, introduce significant changes to property transactions under the Property Law Act 2023. These reforms aim to enhance transparency and reduce disputes, but they also bring new responsibilities and costs for sellers, agents, and buyers.

Key Requirements of the Seller Disclosure Regime

Sellers must now provide a Seller Disclosure Statement (Form 2), along with prescribed certificates, before a buyer signs a contract. This document includes critical information such as:

• Title details and encumbrances (registered and unregistered).
• Zoning classifications and planning notices (e.g., transport infrastructure proposals).
• Environmental concerns like land contamination or heritage listings.
• Details of any residential tenancy agreements.
• For properties in community title schemes, a body corporate certificate and community management statement.

The body corporate certificate must outline levies, insurance coverage, sinking fund balances, and other financial details. Sellers are responsible for preparing and verifying this information, often with assistance from solicitors or body corporate managers.

Costs and Compliance

Preparing the disclosure statement can cost sellers between $600 and $1,500, depending on the complexity of the property and the required searches. Sellers must ensure the information is accurate and up-to-date, as buyers can terminate contracts and receive a full deposit refund if the disclosure is incomplete, inaccurate, or not provided.

Applicability and Exceptions

The new rules apply to all contracts signed on or after 1 August 2025, regardless of when the property was listed. However, exceptions exist for transactions involving government bodies, related parties, or properties exceeding $10 million in value.

Implications for Sellers, Agents, and Buyers

• Sellers: Must allocate time and resources to comply with the new requirements. Delays in obtaining documents could slow down transactions.
• Agents: Need to guide sellers through the process and ensure compliance to avoid legal risks.
• Buyers: Gain greater transparency but should still conduct independent due diligence.

Challenges for Community Title Properties

For properties within body corporates, sellers must disclose additional details, such as committee contact information, levies, and shared property responsibilities. This process can be complex, especially for self-managed body corporates or those with outdated records.

Final Thoughts

While these reforms aim to modernise property transactions and align Queensland with other states, they place a significant burden on sellers. The Real Estate Institute of Queensland (REIQ) has raised concerns about the lack of government infrastructure to support compliance, particularly in regional areas. Sellers, agents, and buyers are encouraged to familiarise themselves with the new requirements to ensure smooth transactions.