On 1 August 2025, Queensland's property landscape fundamentally changed. The new seller disclosure regime applies to almost all freehold property sales—residential or commercial, freestanding or within a community titles scheme.
This marks a clear move away from the traditional buyer beware model towards a framework where the seller must declare. The result: greater consistency and certainty for buyers, but also higher compliance risks for sellers.
Simpler Contracts, But Greater Risks
There are now only two contracts of sale:
- One for residential property; and
- One for commercial property.
This applies whether the property is a stand-along lot or part of a Community Titles Scheme (CTS.
Land Tax Alert: Sellers can now pass their land tax liability on to buyers at settlement. There is no cap on the amount payable. Buyers could face unexpected, significant costs.
Buyers' Rights
A buyer may terminate a contract if the disclosure statement is defective. Which, in practice, this means valid disclosure is now a condition precedent to a binding contract. The right of termination extends to the date of settlement of the contract. This has a significant impact of both parties.
What Must Be Disclosed?
Sellers must provide an approved disclosure form together with prescribed searches. Key disclosure forms include:
- Form 2 - Sellers Disclosure Statement - this is for all sales; and
- Form 33 - Body Corporate Certificate - needed if the property is in a Body Corporate Scheme.
Other required documents, to be provided with the Seller Disclosure Statement includes a title search & registered plan, orders/notices under planning, building, environmental, or neighbourhood dispute laws, transport/resumption notices, pool compliance certificate, for community title lots: current CMS + body corporate certificate (or explanation if unavailable).
Implied Warranties and Body Corporate Issues
While not new, sellers' obligations regarding implied warranties have now been brought to the forefront under the new regime. If breached, buyers may terminate within 14 days of receiving the contract (or potentially later).
Examples include:
- Undisclosed building or structural defects in common property
- Undisclosed special levies or liabilities (e.g., cladding, concrete cancer)
- Serious body corporate disputes or compliance failures
If a body corporate certificate cannot be obtained, you may need to apply to the Commissioner - potentially delaying settlement. Request your body corporate certificate as soon as possible.
Key Takeaways
- The new regime is in force now - compliance is mandatory.
- Buyers have enhanced rights to walk away if disclosure is defective.
- Contracts are simpler, but risks are higher (particularly land tax)
Solicitors cannot prepare of review contracts in isolation. It is critical that sellers and buyers understand the consequences of non-compliance- especially important for a seller if the sale proceeds are funding the purchase of another property. Termination at such a critical point can be a costly mistake.
For More Information
For more detailed guidance on Queensland's new Seller Disclosure Laws and their implication on property transactions, please contact Vanessa Sciortino - Director, Quartz Legal QLD on 0421 035 129 | vanessa@quartzlegal.com.au.
Special Contributor: - Vanessa Sciortino - Legal Practice Director, Quartz Legal QLD
Disclaimer
This update is provided for general information only and does not constitute legal advice. Readers should not act solely on the information contained herein. Specific advice should be sought from a qualified legal practitioner regarding your circumstances before entering into any property transaction or contract.
