DISCLOSURE OR EXPOSURE? NAVIGATING THE LEGAL TRAPS IN QUEENSLAND’S NEW SELLER DISCLOSURE REGIME

DISCLOSURE OR EXPOSURE? NAVIGATING THE LEGAL TRAPS IN QUEENSLAND’S NEW SELLER DISCLOSURE REGIME

Stakeholders in the Queensland property market (such as owners, real estate agents, search agents, lawyers and conveyancers) have been frantically working out how to prepare for the new seller disclosure regime under the Property Law Act 2023 (PLA). The regime came into force on 1 August 2025 and requires that before a contract of sale is signed by the buyer, the seller must give the buyer a seller disclosure statement (Form 2) and all prescribed certificates applicable to the property.

There’s no doubt the requirement for a seller to comply with this regime is going to create a whole new layer of complexity for a sale transaction and those involved.

Before the Form 2 can be completed properly, the seller must provide sufficient information about the property. Based on the information disclosed, it may become apparent that certain searches need to be carried out for further investigation. For example, there may be a manhole in the backyard which warrants disclosure for an unregistered statutory encumbrance in the Form 2.

The Form 2 steps you through most of what needs to be disclosed but there are some additional matters that may need to be investigated and disclosed where relevant. For example in the section on “Land use, planning and environment” of Form 2 that relates to contamination and environmental protection, the seller is required to:

1. confirm (Yes or No) whether the property is recorded on the Environmental Management Register or the Contaminated Land Register under the Environmental Protection Act 1994 (EPA) – this can be answered fairly easily by conducting the usual contaminated land search;
2. confirm (Yes or No) whether a notice is given with the disclosure, or has been given, under section 408(2), 369C(2) or 347(2) of the EPA – this can’t be answered by simply conducting the above contaminated land search. Instead, instructions will be needed from the seller to answer these questions.

The PLA regulations have additional disclosure requirements of whether:

1. the seller is required to give the buyer a notice under section 408;
2. the lot is subject to an environmental enforcement order to which section 369C applies; and
3. the lot is subject to a prescribed transitional environmental program to which section 347 applies.

These questions are not necessarily answered by completing the boxes in the Form 2. Detailed client instructions and potentially expert advice may be required to properly address these additional disclosure requirements.

The Form 2 contains 6 pages of questions. Some are simple to answer. Others may require comprehensive instructions from the seller and analysis of complex and/or lengthy search results to ensure they are correctly answered.

The buyer may be entitled to terminate the contract of sale if the seller disclosure regime is not complied with. The buyer may terminate the contract if:

1. the Form 2 (or any of the relevant prescribed certificates under it – of which there can be many) was inaccurate or incomplete in relation to a material matter when given to the buyer;
2. the buyer wasn’t aware of the inaccuracy when they signed the contract; and
3. the buyer wouldn’t have signed the contract had they been aware of the correct state of affairs.

There are also other termination rights.

The seller disclosure regime is full of potential pitfalls that need to be navigated carefully. Budgen Allen can help you through the process, prepare the statement and provide you with the advice you need.

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This article was first published on 20th August 2025. It was written by Christel Goh and Sally Thomson in our Brisbane office.

© Bugden Allen Group Legal Pty Ltd. This is general information only and not legal advice. You should not rely on this information without seeking legal advice tailored to your specific circumstances.