25 Sep 2025
Words David Adolphe Informer

SELLER BEWARE

On 25 October 2023, the Queensland Parliament passed the Property Law Act 2023 (“the Act”), which replaced the outdated 1974 Act. However, its key provisions — including a new mandatory seller disclosure regime — only came into force on 1 August 2025.

The Shift from “Buyer Beware” to Seller Transparency

Queensland’s traditional “buyer beware” approach will be fundamentally altered by this new statutory regime that places the onus on sellers to provide comprehensive property disclosures before the buyer signs any contract.

Section 99 of the Act mandates this disclosure obligation. The parties cannot contract out of this obligation.

This will bring Queensland into line with the disclosure requirements in other states like New South Wales and Victoria.

Who Is Covered — and What Sales Are Exempt?

The regime applies broadly to sales and options involving freehold land but will not apply to contracts for leasehold sales of motels. It will apply to the land contract in a freehold going concern sale.

Notably, off-the-plan or proposed lots remain governed by existing legislation are excluded.

Some limited exemptions include:

• Sales between related parties or coowners,
• Sales where the price exceeds $10 million (including GST) if the buyer waives disclosure in writing,
• Sales to public bodies, listed corporations, or government agencies,
• Option contracts where disclosure has already been provided and the ultimate buyer is unchanged.

The Disclosure Package: Form 2 + Prescribed Certificates

Under section 99 of the Act, the seller must provide two elements before the buyer signs:

1. A completed and signed disclosure statement (the official Form 2), which:

• Must use an approved format,
• Contains prescribed information as set by the regulations,
• Must be accurate and up to date at the time of provision,
• Must be signed by the seller (electronic signature allowed)

2. Prescribed certificates/documents, which include:

• Title search and survey plan,
• Certificates under other legislation (e.g., pool safety, contaminated land notices, building or environmental compliance),
• Body corporate certificate (if in a scheme),
• Transport infrastructure notices, tree orders, resumption notices, zoning statements, etc.

Disclosures may be given in physical form or electronically, provided the buyer consents (consent may be implied). The buyer does not need to sign the form, but it is considered best practice.

Prescribed Information in Form 2

Form 2s must include:

• Seller and property identifiers (address, lot/plan, title particulars),
• Encumbrances (registered and known unregistered such as easements, sewerage infrastructure, rights-of-way),
• Zoning and planning details (local zoning, proposed infrastructure),
• Environmental issues (heritage listing status; contamination; treerelated disputes),
• Neighbourhood Disputes (Trees & Fences) Act notices or orders,
• Rates and water charges,
• Body corporate or community scheme information, including pools,
• Tenancy/rooming arrangements if applicable.

Legal Consequences of Non-Compliance

If the seller fails to give Form 2 or the prescribed certificates before the buyer signs:

• The buyer can terminate the contract at any time before settlement by notice,
• Any amounts already paid such a deposit (plus interest) must be refunded in full.If a disclosure statement or certificate is inaccurate or incomplete, and that inaccuracy relates to a material matter the buyer was unaware of and would have influenced their decision, the buyer has the same right to terminate before settlement.

Practical Impacts on Sellers,  Agents and Buyers

For sellers and agents:

Transaction timing and costs: Preparing disclosure early can delay when a contract can validly be signed; gathering certificates, conducting searches, and preparing an accurate Form 2 must now follow a disciplined timeline.

Existing REIQ contracts have been updated from 1 August 2025 to align with the new regime.

For buyers:

Access to full property information before signing enhances certainty, reduces risk and enables informed decision-making.

They must review Form 2 and the certificates before committing — you retain a statutory right to walk away before settlement if disclosure is not compliant.

They should still consider the need for proper due diligence enquiries into the property either before or after contracting particularly with respect to physical inspections.

Conclusion

The Act marks a major reform, shifting from buyer due diligence to seller transparency.

While the parties will need to take into account these extra pre-contractual steps and costs (for sellers) the regime has been in place in other states for some time and should be easily taken up for Queensland transactions. END

David Adolphe is a Queensland Law Society Accredited Business Law specialist and has been in practice for 20 years. He has advised clients in all manner of business transactions and takes a special interest in tourism and hospitality matters. David takes a practical approach to delivering the best possible strategic legal advice to clients on all aspects of business and commercial law matters. david@dcadolphe.com.au