From 1 August 2025, significant changes to Queensland property law will take effect with the commencement of the Property Law Act 2023 (Qld). One of the key reforms is the introduction of a mandatory seller disclosure regime for most residential and commercial property sales.
What must Sellers provide?
Sellers are now required to deliver a signed Seller Disclosure Statement (Form 2) before the buyer enters the contract. This must include:
- All encumbrances (registered and unregistered)
- Zoning classification
- Residential tenancy details
- Recent rates and water notices
- Title search, registered plan, and other prescribed certificates
- Disclosure of material issues, including:
- Resumptions (e.g. infrastructure plans)
- Environmental contamination
- Heritage listings
- Tree protection orders
- Owner-builder works
- Local authority notices
Note: The information must be current at the time of contract, meaning pre-campaign search packs aren’t sufficient.
Community Title Schemes: Enhanced Disclosure
For lots within a community titles scheme, sellers must provide both:
- Community Management Statement (CMS)
- New Body Corporate Certificate (replacing s206), which includes:
- Current levies and unpaid contributions
- Passed/proposed special levies, with amounts and due dates
- Any legal disputes or proceedings
- Known defects in common property
- Building format plan and exclusive-use by-laws
- Body corporate insurance details
- Outstanding lot-owner obligations under the by-laws
Ensure certificates are obtained before signing, and budget for potential delays, especially in self-managed schemes.
Are there any exemptions?
Disclosure obligations do not apply to:
- Related-party transactions
- Government purchasers
- Boundary realignments or transfers between co-owners
- Option contracts, if exercised by the original grantee (otherwise additional disclosure is required)
- Sales above $10 million
Off-the-plan sales remain outside the disclosure regime for now.
Termination for Non-Compliance
Non-compliance with the disclosure obligations may entitle the Buyer to terminate the contract.
- Missing disclosure statement or prescribed certificate → Buyer may terminate, regardless of whether they were disadvantaged
- Inaccurate or incomplete disclosures → Buyer may terminate if they can prove:
- It was a material issue
- They were unaware of the true circumstances
- They would not have contracted had they known
This material prejudice test differs from the thresholds applied under the Land Sales Act 1984 (Qld) and the Body Corporate and Community Management Act 1997 (Qld). It remains to be seen whether the Courts will interpret this new test consistently with those existing frameworks.
Practical Impacts on Sellers
- Costs: Searches and certificates may total $200–$300+ per property
- Timing: Contracts cannot proceed without a fully current disclosure. Coordinate the search/order close to the sale to ensure currency
- Delays: Manual processing by councils and bodies corporate are expected, particularly in community title contexts
- Termination risk: Buyers may terminate on technical grounds, including minor omissions or a missing signature if they have a change of mind
Advice & Support
Whether you’re a seller, buyer or agent, our team can assist you to navigate the new seller disclosure regime.
We can assist with:
- Advising on compliance with the new disclosure requirements
- Preparing and reviewing Seller Disclosure Statements and supporting certificates
- Reviewing and updating sales processes and documentation (agency agreements, Form 6 appointments)
- Providing practical guidance for agents and sales teams
- Supporting buyers in understanding their rights under the new regime
To ensure your systems, contracts, and workflows are ready, get in touch with our property specialist team at McTaggart Grant Lawyers for expert guidance.
About McTaggart Grant Lawyers
McTaggart Grant Lawyers is a boutique corporate, commercial and property law firm founded by former top-tier lawyers Ben McTaggart and Mary Grant. Our lawyers are specialists and we partner with our clients to deliver expert, timely and commercially astute advice with a relentless focus on quality. We work with founders, business owners, family offices and corporations Australia-wide across a range of industries, including childcare, property development, private capital, franchising, medical and allied health services and retail. We are proudly headquartered on the Gold Coast and deliver our services locally and remotely to interstate clients using modern technology.