Major Change for Seller Disclosure Statements as of 1 August 2025

Overview:

Commencing 1 August 2025, The Property Law Act 2023 (Qld) introduces a mandatory Seller Disclosure Scheme. The non-negotiable scheme applies broadly across residential and non-residential land transactions. The scheme imposes strict disclosure obligations for sellers of registered Lots in Queensland.

What’s changing on 1 August 2025?

Under the new Property Law Act 2023 (QLD), sellers must provide a completed Form 2 to a buyer, before they can sign a contract. If they don’t, contracts may be terminated by buyers at any time prior to settlement.

What is a Form 2?

A legally required document disclosing key property info (e.g. zoning, encumbrances, disputes and notices). If it’s inaccurate or incomplete, buyers can walk away — making a Form 2 the new most important contractual document in Queensland real estate.

What are the risks for Agents or Sellers who prepare Form 2 themselves?

Possible huge financial risks: losing commission, refunding VPA, paying both the buyer and seller’s legal costs and/or having to cover the difference in sale price. Just one error could be costly.

1. Scope of Application

• Applies to the sale of registered lots in Queensland, including via:

• Standard contracts of sale; and

• Put, call, and put-and-call options.

• Applies to both residential and commercial properties; and

• Does not apply to off-the-plan sales (unregistered lots).

(Ref: s 95, PLA 2023)

2. Exemptions to Disclosure Obligation

Disclosure is not required if:

• Buyer and seller are related and the buyer waives disclosure;

• Buyer is a government body, statutory authority, or listed company;

• Sale is between co-owners or adjoining owners adjusting boundaries;

• Sale arises from court orders, family law agreements, or deceased estates;

• Sale is a Council-enforced rates sale (Acquisition of Land Act);

• Sale is a follow-on from an option contract where earlier disclosure occurred; or

• Sale price exceeds $10 million incl. GST, and buyer waives disclosure (s 99 PLA 2023).

(Ref: s 100, PLA 2023)

3. Seller Obligations

Sellers must provide the following prior to the contract being signed by the buyer:

• A Form 2 Disclosure Statement, in the approved format, signed and accurate;

• Prescribed certificates and searches under the Regulations must be annexed;

• For a Body Corporate transaction, a Form 33 or Form 34 as well as the prescribed

Body Corporate certificates must be annexed; and

• Disclosure must reflect the state of affairs as at the date of issue (not the date it is

signed).   (Ref: s 95, PLA 2023)

4. Buyer Termination Rights

Buyers have a statutory right to terminate before settlement if:

• No disclosure statement or required certificates are provided before the contract was signed;

• Disclosure is materially inaccurate or incomplete and the buyer:

• Was unaware of the true position; AND

• Would not have signed had they known about the true position.

Important:

• Termination is the only remedy for the buyer

– there is no right to compensation for a buyer.

(Ref: s 99, PLA 2023)

5. Required Searches & Body Corporate Documents to attached to Contract.

The disclosure statement (Form 2) must be accompanied by prescribed searches and

documents, including but not limited to:

• Title search;

• Survey plan and plan image;

• Property risk certificates (if there is a disclosable notice) e.g. heritage, contaminated land.

• A financial summary of the Local Government rates and water notices

• Department of Transport and Main Roads (DTMR) notices

• For Body Corporate properties, sellers must also attach:

• Form 33 (Disclosure Statement – Community Titles Scheme) or Form 34 (Disclosure Statement – Two-Lot Schemes)

• Body Corporate certificates, including:

• Exclusive use by-laws or allocations of common property;

• Details of current levies and financial accounts;

• Insurance certificates;

• Body Corporate by-laws;

• Body Corporate Asset register;

• A list of improvements that an Owner is responsible for.

Summary:

From 1 August 2025, Queensland’s property sale landscape fundamentally changes.

Sellers must comply with a rigid disclosure framework or risk losing the sale. Agents,

lawyers and sellers must adopt new workflows to avoid delays, terminations or legal missteps.

July 2025