New Seller Disclosure Requirements

Queensland is set to implement significant reforms in property law with the introduction of a mandatory seller disclosure regime, effective from 1 August 2025. These changes, enacted under the Property Law Act 2023, mark a departure from the traditional "buyer beware" approach, aiming to enhance transparency and reduce disputes in property transactions.

Key Features of the New Seller Disclosure Requirements:

• Mandatory Disclosure Statement: Sellers must provide a completed and signed disclosure statement to prospective buyers before the contract of sale is signed. This statement includes critical information about the property, such as title details, zoning, and any unregistered encumbrances.
• Prescribed Certificates: Alongside the disclosure statement, sellers are required to furnish specific certificates, which may include:
• Title search and survey plan
• Rates and water service charges
• Zoning and planning information
• Community management statement and body corporate certificate (for properties in a community titles scheme)
• Pool compliance certificate, if applicable
• Notices relating to transport infrastructure proposals or resumptions
• Environmental and heritage listings
• Applicability: These requirements apply to the sale of both residential and commercial properties in Queensland. There are limited exceptions, such as sales between related parties or sales to government entities.
• Consequences of Non-Compliance: If a seller fails to provide the disclosure documents correctly, or if there is a material mistake or omission, the buyer may be entitled to terminate the contract before settlement. This underscores the importance of accuracy and completeness in the disclosure process.

Implications for Stakeholders:

• Sellers: Must ensure all required information and certificates are accurately compiled and provided in a timely manner. This may involve additional preparation and potential costs, but it also offers a clearer framework for compliance and reduces the risk of post-contract disputes. The cost for the disclosure statement to be prepared by your solicitor is like to fall in the $1,000-$1,500 range depending on whether is is a house or a unit and what searches are required.
• Buyers: Benefit from increased transparency, enabling more informed decision-making. The standardized disclosure process helps identify potential issues early, reducing the likelihood of unexpected complications after purchase.
• Real Estate Professionals: Need to familiarize themselves with the new requirements to guide clients effectively. The Real Estate Institute of Queensland (REIQ) and the Queensland Law Society (QLS) are providing resources and training to assist practitioners in adapting to these changes.

Overall, the new seller disclosure regime represents a significant shift towards greater transparency in Queensland's property market. While it imposes additional responsibilities and costs on sellers, it aims to foster trust and reduce disputes, benefiting all parties involved in property transactions.