Big changes are coming for Queensland property sellers with new disclosure requirements set to take effect from 1 August 2025. These changes will significantly impact how properties are brought to market in Queensland potentially adding more expense to sellers and slowing the listing process.
The biggest impact is for home sellers and we're committed to helping our clients navigate this new landscape with minimal stress and maximum results, and to help you understand what this means for you, we sat down recently with Louise Mifsud, Property Lawyer at NB Property Law, to get the inside scoop on everything you need to know.
What are the new seller disclosure requirements?
The Property Law Act 2023 introduces significant changes to the disclosure process for property sales in Queensland. This change aims to create greater transparency in property transactions and ensure buyers have all the necessary information upfront.
This means that from 1 August 2025, sellers will need to provide potential buyers with a comprehensive disclosure statement containing specific information about the property before entering into a contract of sale and there will be significant implications for those who don’t comply.
What information needs to be included in the disclosure statement?
As Louise explained, the disclosure statement must include "a range of details, including the property's title information, any encumbrances like easements or covenants, council zoning, existing or approved building work, body corporate information for units, and details about any statutory notices or orders affecting the property."
For body corporate properties, additional information will be required, including body corporate levies, building defects and by-laws.
Interestingly, some items that may be relevant for a buyer's decision have not been included in the mandatory disclosure. Things like flooding history are not part of the disclosure statement—it remains the buyer's responsibility to search for this information themselves.
When must the disclosure statement be provided?
The statement must be included as part of the contract package and signed by the seller or their agent, confirming all information is accurate to the best of their knowledge.
"The new legislation mandates that sellers must provide the disclosure statement to potential buyers before entering into a contract of sale," Louise says. "This is a significant change from the current system."
What happens if a seller doesn't comply?
It is critical to not underestimate the importance of compliance as penalties can be substantial – up to 500 penalty units, which at the time of writing equates to over $75,000: "If a seller fails to provide a disclosure statement or provides incomplete or inaccurate information, the buyer may have the right to terminate the contract before settlement. Additionally, sellers could face significant financial penalties," explained Louise.
Are there any exemptions?
"Yes, certain transactions are exempt from these requirements," notes Louise. "These include sales by mortgagees, sales between related parties or associated entities, and some specific court-ordered sales."
However, most standard residential property sales will need to comply with the new disclosure requirements.
How should sellers prepare for these changes?
We highly recommend preparing your documents for sale well in advance, as some searches that are traditionally done by purchasers following their purchase are now being pushed onto the sellers and becoming a cost to the seller. Some required searches could take several weeks to come back, creating a delay before a property can be marketed.
Louise recommends that you "Begin gathering all the necessary documentation early. This includes title searches, council certificates, body corporate information, and records of any building works. Working with a solicitor experienced in property law will be crucial to ensure you meet all obligations and avoid potential penalties."
Will these changes impact property prices?
While it's difficult to predict the exact impact on the market, these changes primarily aim to improve transparency rather than directly influence prices. That said, sellers should factor in the additional costs of preparing the disclosure statement when budgeting for their sale.
What about other compliance requirements?
Sellers should also be aware of the relatively new requirements for interconnecting smoke alarms in every bedroom and other areas, as well as pool compliance certificates.
What are the benefits of these changes?
The new requirements should result in more informed buyers and potentially smoother transactions with fewer disputes after contracts are signed. By having all information upfront, buyers can make more confident decisions, and sellers may face fewer issues later in the process.
The bottom line
The new seller disclosure requirements represent a significant shift in Queensland's property market. While they add extra responsibilities for sellers, they ultimately aim to create more transparent and efficient property transactions.
Final advice from Louise was simple: "Start preparing early, seek professional legal advice, and ensure you disclose all required information accurately. This will help you navigate the new requirements smoothly and avoid any potential pitfalls."
Our Commitment to You
At Penrose Real Estate, we're across about these changes and what they mean for our clients. If you're thinking about selling or purchasing a property and want to understand how these new rules might affect you, we're here to help you navigate these changes - contact us for a complimentary appraisal or download your FREE Instant Property Report now!
For more information about how these changes might affect your property sale, contact Louise and the property law team NB Property Law or call for a chat on (07) 3876 5111.
This article provides general information only and should not be relied upon as legal advice. For specific advice relevant to your situation, please consult a qualified legal professional.