In Queensland, property sales have undergone a huge shake-up from 1 August 2025, with a new mandatory seller disclosure scheme bringing an end to decades of “buyer beware” rules. No longer will buyers be blindsided by contaminated land notices, surprise body corporate debts, or hidden planning restrictions after settlement. Instead, the state’s property market is now moving into a new chapter, one defined by clarity and disclosure.
Under the Property Law Act 2023, sellers are now legally required to provide a full picture of the property upfront, before contracts are signed. This reform completely changes the way property sales are handled, giving buyers clearer information from the start and holding sellers to higher standards. Whether you’re selling your family home, an investment property, or a commercial building, these reforms will directly shape your next property deal.
Why This Change Is So Important
Comprehensive disclosure
Sellers are now legally required to reveal far more than just the basics. The new disclosure obligations cover the property’s legal status, encumbrances, physical condition, and any issues that could influence a buyer’s decision. This includes:
- unpaid rates
- environmental listings
- pool safety compliance
- building notices.
In practice, it means buyers won’t face nasty surprises after settlement, such as unexpected fees or restrictions that affect how they use the property.
Standardised documentation
Every seller must complete the official Form 2 Seller Disclosure Statement and attach prescribed certificates from councils, government authorities, and body corporates. This uniform approach removes guesswork for buyers and ensures consistency across all property sales in Queensland. Whether you’re comparing an apartment in Brisbane or a rural block in Rockhampton, you’ll be able to weigh up properties on a fair and equal basis.
Serious legal consequences
If sellers fail to comply, even unintentionally, buyers can walk away from the deal by exercising their termination rights. This flips the power balance, placing accountability squarely on sellers to get disclosure right the first time.
National consistency
Queensland has finally caught up with states like New South Wales and Victoria, which already operate under disclosure regimes. This alignment is particularly helpful for interstate investors and developers, who no longer have to navigate vastly different rules when engaging in property sales across borders. The result is greater market confidence and smoother interstate transactions.
The new rules apply to all contracts entered into on or after 1 August 2025, even if the property was listed for sale before that date.
Understanding Your Legal Obligations
Under Part 7, Division 4 of the Property Law Act 2023, every seller must provide two essential components before a buyer signs a contract:
- Form 2 Seller Disclosure Statement: This acts like the property’s medical record, covering everything from lot and plan details to encumbrances, tenancies, and planning restrictions.
For decades, sellers relied on buyers to do their own checks; now, the onus has shifted. Sellers must be upfront and thorough, or risk losing the deal.
- Prescribed certificates: These certificates, issued by councils and government bodies, must be current. A seller can no longer recycle an outdated council search from years ago—the documents must reflect the property’s situation at the time of sale.
Accuracy is non-negotiable. Any error, omission, or outdated certificate can give buyers the right to walk away.
What Information Must You Disclose?
The disclosure obligations cover four broad categories:
1. Property Fundamentals and Legal Status
- Registered encumbrances: Mortgages, easements for utilities, or covenants restricting use must be disclosed. For example, an easement allowing council access across your backyard isn’t something a buyer should discover after settlement.
- Unregistered encumbrances: Informal agreements, verbal easements, or disputes with neighbours must also be revealed. Even handshake agreements carry legal weight under this scheme.
- Tenancy agreements: Rent details, expiry dates, and tenant rights must be disclosed. Buyers need clarity on the obligations they’re inheriting.
- Rates and water assessments: Up-to-date council rates and water charges, including any overdue balances, must be included so buyers don’t inherit hidden debts.
2. Environmental and Planning Considerations
- Zoning classification: These determine the land that can be used. For example, a buyer wanting to operate a café will face issues if the zoning is strictly residential.
- Heritage listings: These restrict renovations, demolitions, and external modifications. These can be deal-breakers for developers.
- Contaminated land: Listings on the Environmental Management Register or Contaminated Land Register must be revealed. Contamination can severely impact value and usage.
- Infrastructure projects: Planned highways or rail lines affecting the property must be disclosed.
- Land resumption notices: If government intends to acquire part of the property, buyers must know upfront.
- Tree orders and disputes: Tree removal restrictions or ongoing neighbour disputes must be disclosed, helping avoid bitter surprises later.
3. Building and Structural Matters
- Pool safety compliance: Buyers must be told whether pools meet safety standards or require upgrades.
- Outstanding building notices: Show cause or enforcement notices from authorities cannot be hidden.
- Owner-builder work: Work done under an owner-builder permit within six years must be disclosed, as warranty obligations apply.
- Recent planning approvals: Any newly approved extensions or renovations must be revealed, even if not yet on council systems.
4. Community Titles Schemes
- Body corporate levies and fees: Buyers should know ongoing financial commitments.
- Insurance and sinking fund balances: Help buyers gauge the scheme’s financial health.
- Disputes or outstanding contributions: Transparency here protects buyers from inheriting unresolved conflicts.
How These Changes Have Transformed Property Sales
Previously, sellers had minimal disclosure obligations, creating information gaps, disputes, and inconsistency across the market. Some sellers were open, while others disclosed as little as possible.
Now, every buyer receives the same baseline information, and every seller follows the same rules. This levels the playing field and builds trust across property sales in Queensland.
Why This Matters for Everyone
For Buyers:
- Informed decisions: No more guessing games; buyers know what they’re committing to.
- Reduced risks: Post-settlement surprises are less likely.
- Legal protection: Termination rights exist until settlement if disclosure is defective.
For Sellers:
- Clear framework: Reduces uncertainty and liability.
- Smoother settlements: Informed buyers mean fewer disputes and delays.
- Market confidence: Transparency can make properties more attractive.
For the Market:
- Consistency: One process for all.
- Reduced litigation: Fewer court cases over nondisclosure.
- Professional standards: Agents, lawyers, and sellers must operate at a higher level.
Auctions, Exemptions, and Special Cases
The scheme also applies to auctions. Sellers must provide disclosure documents to registered bidders before the auction begins. Since contracts form immediately at the fall of the hammer, preparation and document delivery are critical.
Exemptions include:
- Government and corporate sales.
- Related-party transactions with written waivers.
- High-value commercial sales over $10 million (if waived).
- Off-the-plan sales (already regulated).
- Statutory sales, such as council rate recoveries.
Consequences of Non-Compliance
The penalties are serious. Buyers may terminate if sellers:
- Fail to provide disclosure.
- Provide inaccurate information.
- Deliver incomplete or outdated certificates.
Termination rights last until settlement, leaving sellers exposed if they get it wrong.
What Buyers Still Need to Check
Despite the broad scheme, buyers should still conduct their own due diligence. Sellers don’t need to disclose:
- Structural integrity or engineering soundness
- Flood history (unless officially recorded)
- Old planning approvals
- Utility service availability
- Asbestos
- Certain vegetation restrictions
Inspections, searches, and specialist advice remain essential.
Preparing for Success Under the New Scheme
For sellers, preparation is key:
- Consult an experienced Property Lawyer like ours to clarify obligations.
- Gather documents early to avoid delays.
- Order council and body corporate searches in advance.
- Keep records of document delivery.
This is not just about compliance; it’s about protecting the sale and ensuring settlement proceeds smoothly.
Looking Toward Queensland’s Property Future
Beyond paperwork, this scheme is a cultural shift. It prioritises transparency, reduces disputes, and builds trust in property sales. Long-term, it should:
- Increase market confidence.
- Reduce litigation.
- Protect buyers.
- Encourage professional excellence.
Conclusion
As of 1 August 2025, Queensland’s seller disclosure scheme has reshaped how property sales work. The days of “buyer beware” are over, replaced by a framework of mandatory transparency that benefits buyers, sellers, and the broader market.
At Felicio Law Firm, our experienced Central Coast Conveyancing Lawyers are already guiding sellers through the new regime. From preparing disclosure statements to managing settlement, we ensure your sale complies with every requirement and protects your interests. Whether you’re selling a family home, an investment property, or a commercial building, our expertise in Queensland’s evolving property laws means you can navigate these changes with confidence.
Selling property in Queensland? Don’t hesitate to get in touch with us today.
