New seller disclosure scheme for property sales in Queensland to take effect from 1 August 2025

A major reform under Queensland’s new Property Law Act 2023 (Qld) will mean the onus is on sellers of freehold property to make significant disclosures regarding the property with prospective buyers before the buyer signs on the dotted line

Key points:

• From 1 August 2025, a new mandatory seller disclosure scheme will apply to sales of freehold property in Queensland.
• Sellers will be required to disclose specific information to a potential buyer before they sign a contract.
• The scheme aims to make property sales more transparent and ensure parties know where they stand legally.

One of the important reforms Queensland’s new Property Law Act 2023 (Qld) (Act) will introduce when it takes effect on 1 August 2025 is a new mandatory seller disclosure scheme.

Under the scheme, anyone selling residential or commercial property or vacant land in Queensland will be required to disclose specific information to a prospective buyer before the buyer enters into a contract.

The scheme is designed to make the sale process more transparent and clarify parties’ legal obligations. It brings Queensland into line with other States that have disclosure schemes.

What are the new disclosure requirements?

The seller disclosure scheme will apply to the sale of freehold land, including auctions, mortgagee or receiver sales and sales resulting from the exercise of an option (subject to various exceptions, as referenced below).

Before a buyer signs a contract of sale, the seller must provide a signed disclosure statement containing prescribed information, which must be in the approved form. You can access a copy of the form of disclosure statement published by the Queensland Government here.

The disclosure statement is required to be provided to the buyer alongside disclosure documents (referred to as prescribed certificates) and information prescribed by the Property Law Regulation 2024 (Qld) in relation to the relevant lot.

The prescribed certificates include:

1. title search
2. registered plan of survey
3. notice of any unlicensed building work undertaken within the last 6 years
4. current show cause notice or enforcement notice issued by the relevant authority under the Building Act 1975 (Qld) or Planning Act 2016 (Qld)
5. current notice or order issued by an authority requiring work to be done or money spent
6. current notice, order or transport infrastructure proposal issued by an authority that may affect the title or use of the lot (eg notice of intention to resume)
7. if there is a pool for the lot, a pool compliance certificate or a notice that there is no pool safety certificate
8. if the lot is within a community titles scheme:
   1. a body corporate certificate (or a statement that the body corporate certificate is not attached and reasons why the seller has been unable to obtain the certificate)
   2. the relevant community management statement
   3. any exclusive use by-laws or other by-laws not included in the community management statement
9. if the lot is included in a plan under the Building Units and Group Titles Act 1980 (Qld), a body corporate certificate (or a statement that the body corporate certificate is not attached and reasons why the seller has been unable to obtain the certificate)

The information prescribed by the Property Law Regulation 2024 (Qld) includes:

Unregistered Encumbrances	Details of any unregistered encumbrance which will not be released at settlement, including: an unregistered lease, including a short lease under the Land Title Act 1994 (Qld) an access agreement, opt-out agreement or conduct and compensation agreement under the Mineral and Energy Resources (Common Provisions) Act 2014 (Qld) an unregistered charge, mortgage, easement or profit à prendre a charge, restriction or burden affecting the title in favour of the Commonwealth, State or local government but excludes an encumbrance registered on title.
Zoning	Zoning of the lot as published in the relevant local government’s planning scheme
Environmental	Whether the lot is recorded on the Environmental Management Register or Contaminated Land Register Whether the seller is required to give the buyer a notice under section 408 of the Environmental Protection Act 1994 (Qld) Whether the lot is subject to an environmental protection order Whether the lot is subject to a transitional environmental program
Community Titles Scheme	Whether the lot is included in a community titles scheme or subject to a plan under the Building Units and Group Titles Act 1980 (Qld)
Trees	Whether the lot is affected by any tree orders or applications under the Neighbourhood Disputes (Dividing Fences and Trees) Act 2011 (Qld)
Notice or orders	Whether the lot is affected by a notice, order or transport infrastructure proposal
Heritage	whether the lot is affected by the Queensland Heritage Act 1992 (Qld) or is included in the World Heritage List under the Environment Protection and Biodiversity Conservation Act 1999 (Cth)
Pool	Whether there is a pool for the lot
Commercial office building	If there is a commercial office building of more than 1,000 m2 on the lot, that a Building Energy Efficiency Certificate is available on the Building Energy Efficiency Register
Rates and Water	Details of the most recent rates and water service charges for the lot (if rates and water service charges are payable)
Tenancy	Details of the last rent increase if the lot was subject to a residential tenancy agreement or a rooming accommodation agreement under the Residential Tenancies and Rooming Accommodation Act 2008 (Qld) during the 12 months before the contract of sale was signed

Caveat emptor – buyer’s responsibilities

The disclosure statement also prominently alerts a buyer to undertake its own due diligence about matters not covered by that document before signing a contract of sale.

In particular, the disclosure statement does not require the disclosure of information relating to:

• flood history
• structural soundness of the building
• pest issues
• current or historical use of the property
• current or past building or development approvals
• limits imposed by planning laws on the use of the land and services that are or may be connected to the property
• services that are or may be connected to the property
• the presence of asbestos within buildings or improvements on the property.

Auction contracts

For auctions, the Act makes a distinction between the disclosure requirements in respect of a prospective buyer of a lot who registers as a bidder either before or after the commencement of an auction.

Where a buyer registers as a bidder after the auction has commenced (and has not previously been provided with the disclosure statement and prescribed certificates), the disclosure documents must be made available physically (for an auction conducted in person) or electronically (for an auction conducted electronically).

Options

The seller disclosure regime applies to contracts of sale arising from the exercise of an option. In these circumstances, the seller will be required to give the relevant disclosure statement and prescribed certificates as follows:

• if the disclosure documents are given to the grantee under the option prior to signing the option and the parties to the resulting contract formed upon exercise of the option are the same, no further disclosure documents are required to be given at the time of exercise; and
• if the grantee under the option nominates a third party to enter into the resulting contract, the seller of the lot will need to give disclosure documents to the nominee prior to the exercise of the option.

A seller will need to ensure that the mechanics of its option are drafted such that the seller will have the ability to provide any disclosure statement and prescribed certificates to a third party nominated as buyer under a contract of sale prior to the nominee executing the contract of sale.

Finally, the Act provides that the seller disclosure scheme will not apply in respect of contracts of sale resulting from the exercise of an option which was signed prior to 1 August 2025.

Permitted methods of providing the disclosure statement

The Act provides that the disclosure statement and prescribed certificates may be given physically or electronically (and also signed electronically), for easier access and convenience. This will facilitate the use of electronic delivery of the disclosure documents using platforms such as DocuSign and cloud storage or as a secure link in an email. However, the buyer must consent to receiving the disclosure statement and prescribed certificates via electronic means before the documents will be deemed to have been delivered.

When sending a secure link via email containing disclosure documents, the seller should request a delivery receipt notification confirming that the email has been successfully delivered to the buyer’s nominated email address.

For documents that are served physically, the Act provides that the documents will be deemed to have been given at the time of delivery (if personally delivered), or on the date that is 7 business days after posting (if sent by post).

Exceptions to disclosure

In addition to the exemption to the disclosure requirement where there is an exercise of an option (as discussed above), there are various other exceptions,for example:

• Where there is a contract giving effect to the resumption of land under the Acquisition of Land Act 1967 (Qld)
• A sale or transfer between co-owners
• Transactions involving a boundary realignment between adjoining lot owners
• A sale between related parties where the buyer gives the seller a notice waiving compliance with the disclosure requirement under the Act
• Transactions involving a State or government entity as the buyer of the lot
• Where the purchase price is more than the amount prescribed by regulation (or, if no amount is prescribed, $10 million including GST) where the buyer gives the seller a notice waiving compliance with the disclosure requirement under the Act.

However, such exceptions do not exempt the seller from providing the required disclosure under other legislation (for example, a notice under section 408 of the Environmental Protection Act 1994 (Qld)).

Buyer’s right to terminate

A buyer has a right to terminate a contract, on giving a notice of termination to the seller, at any time prior to settlement if:

1. the seller fails to provide the disclosure statement and any prescribed certificates before the buyer signed the contract.

   This is an absolute right to terminate the contract and does not require the buyer to prove that the non‑disclosure related to a material matter.

2. all of the following apply:

1. 1. the disclosure statement or prescribed certificates contain an inaccuracy or are incomplete in relation to a material matter;
   2. the buyer was unaware of the correct state of affairs concerning the matter when they entered into the contract;
   3. the buyer would not have entered into the contract had they been aware of the correct state of affairs.

The Act provides limited guidance on what constitutes a ‘material matter’, but we expect this to depend on specific circumstances and determined on a case-by-case basis.

The only exception to a buyer’s right to terminate is where the seller’s failure to disclose (or inaccuracy in the disclosure) is also a failure to comply with another Act. In this circumstance, the consequence provided for in the other Act will apply instead. For example, a seller’s failure to give a buyer notice about unlicensed building work under the Queensland Building and Construction Commission Act 1991 (Qld) does not give a buyer the right to terminate the contract, but instead implies a contractual warranty that the building work was properly carried out.

Where a buyer terminates a contract of sale, the seller must refund any amount paid by the buyer towards the purchase of the land within 14 days of termination, including a deposit or part payment of the property price. This includes any interest accrued on the amount whilst held by the seller.

Practical considerations: time and extra cost

It’s important to bear in mind (and factor into any prospective sale) the likely timeframes to receive the prescribed certificates from the relevant authorities (up to 10 business days or more), and for a disclosure statement to be deemed given to the buyer (especially if the disclosure documents are sent by post).

The seller disclosure regime will also significantly shift the cost of undertaking legal due diligence from the buyer to the seller. However, as discussed above, buyers should be aware that the disclosure statement and prescribed certificates do not cover all matters that may be relevant to the buyer’s purchase.

For more information, please contact Sarah Roettgers or Matthew Butchard.