Effective 1 August 2025, the new Property Law Act 2023 (Qld) (“PLA 2023”) will replace the current Property Law Act 1974 (Qld), and with the introduction of this new legislation introduces a mandatory disclosure framework on the sellers of both residential and commercial properties, including sales conducted through auction and negotiated agreements.
Under the PLA 2023, with certain exceptions, the onus is on the sellers to provide the prospective buyers with a comprehensive disclosure statement and relevant prescribed certificates before the buyer signs the contract of sale, or the call option deed.
Purpose of the Seller Disclosure Scheme
The new Seller Disclosure Statement is intended to increase transparency of property transactions in Queensland and to ensure that buyers have access to essential, standardised, information early in the property transaction process.
Is a Seller Disclosure Statement Legally Required in QLD?
Under the new PLA 2023, sellers must provide a completed and signed Form 2 Seller Disclosure Statement with the necessary prescribed certificates to the buyer before the contract of sale, or call option deed, is executed.
Exceptions to the Provision of Seller Disclosure Statement
There are, however, some exceptions where a Seller Disclosure Statement is not required, such as :
- Related party transactions, where the buyers are able to waive compliance before signing the contract, such as the sales between co-owners or transfers pursuant to a will
- Property sales price exceeds $10,000,000, and the buyer waives compliance
- Boundary realignments between neighbouring owners
- A contract where the State or government body is the buyer
- A contract that gives effect to a court order, enforcement warrant or a financial agreement under the Family Law Act 1975 (Cth)
- Off the plan sales (which will continue to be governed by the Land Sales Act 1984 (Qld) and Body Corporate and Community Management Act 1997 (Qld)
What will change from 1 August 2025?
Everyone involved in the sale process (sellers and real estate agents) will need to change the way they operate.
At the moment and up until 31 July 2025 :
- A seller will engage a real estate agent to sell their property.
- The agent will commence the marketing campaign.
- The agent will prepare a contract of sale for signing by the buyer and seller when a price is agreed.
- After the contract is signed by the buyer and seller, the contract is forwarded to the lawyers.
This process will no longer be possible after 1 August 2025. Lawyers will need to be involved at the start of the process.
Effective from 1 August 2025, the updated process will be as follows :
- A seller will engage a real estate agent to sell their property.
- A lawyer is engaged to prepare the Seller’s Disclosure Statement.
(The time needed to prepare the disclosure statement is at least 2 weeks) - The agent will commence the marketing campaign.
- The disclosure statement will be provided to prospective buyers.
- The buyer will sign an acknowledgement that they received the disclosure statement at the same time that they sign the contract of sale.
[The contract of sale can be prepared by the agent or the lawyer] - After the disclosure statement and contract are signed by the buyer and seller, they are forwarded to the lawyers.
Can a Buyer Terminate the Contract based on the Disclosure Statement?
The buyer has the right to terminate the contract at any time up till settlement, if :
- The Seller Disclosure Statement and the relevant prescribed certificates are not given prior to the buyer signing the contract
- The Seller Disclosure Statement and the relevant prescribed certificates are given prior to the buyer signing the contract but the Form 2 or the relevant prescribed certificates is inaccurate or incomplete in relation to a material matter at the time it is given
Looking To Sell Your Queensland Property Soon?
The new Seller Disclosure regime aims to reinforce the advocacy made by the legal profession that property sellers should involve their property lawyers in the early phase of their sales journey.
At HTW Legal Group, we keep ourselves update on the latest legislations requirements regarding property conveyancing and ensure that our clients are aware of their role and requirements in the property sale process.
Our experienced Gold Coast conveyancing solicitors specialise in providing tailored legal solutions, ensuring your interest align with the latest regulations.
To order your Seller Disclosure Statement, visit out Seller Disclosure Statement page today or contact us at HTW Legal Group today if you are in the property market looking to sell or purchase your next property.
