Starting from 1 August 2025, Queensland will implement a mandatory seller disclosure regime, marking a significant shift from the traditional 'buyer beware' approach. This change aims to enhance transparency and provide buyers with essential information upfront, thereby facilitating more informed property transactions.

Key Components of the New Seller Disclosure Regime:

  1. Disclosure Statement and Prescribed Certificates:
    • Sellers are required to provide prospective buyers with a completed and signed disclosure statement, along with prescribed certificates, before the buyer signs the contract of sale. This applies to both residential and commercial properties.
  2. Contents of the Disclosure Statement:
    • The disclosure statement must include:
      • Seller and property details.
      • Information on unregistered encumbrances.
      • Zoning and planning details.
      • Environmental considerations, such as contamination or heritage listings.
      • Details about any existing pool safety certificates.
      • If applicable, information related to community titles schemes, including body corporate details.
  3. Prescribed Certificates:
    • These may include:
      • A current title search.
      • A copy of the plan of survey.
      • Relevant notices or orders from authorities concerning the property.
      • For properties within a community titles scheme, the community management statement and body corporate certificate.
  4. Exemptions:
    • Certain transactions are exempt from these disclosure requirements, including:
      • Sales where the contract price exceeds $10 million (inclusive of GST), provided the buyer waives the disclosure requirement.
      • Transactions between related parties.
      • Sales to government entities or listed corporations.
      • Sales arising from the exercise of certain options or court orders.
  5. Consequences of Non-Compliance:
    • If a seller fails to provide the required disclosure statement and prescribed certificates, or if the information provided is inaccurate or incomplete concerning a material matter, the buyer has the right to terminate the contract at any time before settlement. In such cases, the seller must refund any deposit and any part of the purchase price paid, along with any accrued interest, within 14 days of termination.

Implications for Sellers and Buyers:

  • Sellers: It's crucial to familiarise yourself with these new requirements to ensure compliance and avoid potential contract terminations. Preparing the necessary documentation in advance will be essential.
  • Buyers: While the new regime offers greater transparency, it's still advisable to conduct thorough due diligence. The disclosure statement provides valuable information, but additional investigations can offer further assurance.

This reform represents a significant advancement in Queensland's property law, promoting fairness and clarity in property transactions. Both sellers and buyers should seek professional advice to navigate these changes effectively.

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