Understanding the New Seller's Disclosure Obligations Under the Property Law Act 2023

As most people in the industry have heard by now, big changes are coming for Queensland property sellers… and their real estate agents.

Starting 1 August 2025, new disclosure obligations introduced in the Property Law Act 2023 will come into effect, replacing the existing disclosure framework.

In theory, the update aims to create clearer and more consistent standards for property sellers and buyers, ensuring greater transparency in real estate transactions.

In this article, we’ll walk you through the key updates, explain how they differ from current requirements, and outline each obligation you must meet.

Why the New Legislation Matters

Currently, seller disclosure requirements in Queensland are fragmented across different bits and pieces of legislation and regulation.

Under the new Property Law Act 2023, a more standardised approach has been introduced.

Every seller will have a clear set of obligations to meet before listing their property for sale.

If done properly, this should make it easier for buyers to make informed decisions and reducing disputes during the sale process.

The new framework becomes mandatory from 1 August 2025, offering ample time for real estate professionals and sellers to familiarise themselves with the changes.

The Most Important Thing you Need to Know

In essence, the new disclosure regime just involves filling out a form.

Probably the most important thing you need to know, however, is this:

It doesn’t matter how hard you tried or how honest you thought you were being. If you get it wrong, you’re stuffed.

The consequences of getting your disclosure obligations wrong are strict. That means if something is incorrect or missing, it doesn’t matter that you were genuinely mistaken or honest in your misinformation – the exact some consequences will apply.

Key Changes to Disclosure Obligations

The new obligations focus on transparency and thoroughness. Under the current system, disclosure requirements vary depending on the nature of the property and often fail to provide consistent results.

Don't be fooled, the new Form 2 Seller Disclosure Statement does not include all disclosures required under all other laws, yes there is more!

With the new laws:

• Sellers will be required to disclose standardised information using a prescribed form.

• New categories of disclosure will be introduced, ensuring buyers receive all relevant details (or, at least, those deemed relevant by the legislators) comprehensively.

• Sellers who fail to comply risk contracts becoming voidable or facing legal repercussions.

  
  

Now, let's look at what these specific obligations entail.

New Seller's Disclosure Obligations

Below is a summary of the key disclosure obligations that will apply under the Property Law Act 2023.

Some of these are well worn territory, and others are a bit on the newer side in Queensland.

1. Title Details

Sellers will need to provide accurate and current title details of the property. This includes:

• Providing a current title search and the registered survey plan from the Land Titles Registry.

  
  

• Disclosing whether there are any unregistered or statutory encumbrances, easements, or covenants affecting the property. Importantly the form now specifies in greater detail the types of unregistered encumbrances that might be included, in stark contrast to the previous “free text” style disclosure.

  
  

2. Zoning Information

The form will require sellers to disclose the zoning and planning classifications relevant to the property. This allows buyers to understand how the property can be used (e.g., residential, commercial) and whether there are restrictions on development or usage.

3. Government Notices, Registers and Approvals

Sellers must include details of multiple categories or notices or registers that might be relevant to the property, such as:

• Outstanding building or development applications;

• Transport or resumption proposals;

• Contamination or environment protection register notices;

• Tree orders and applications;

• Any Heritage listing that might apply.

  
  

4. Physical Defects or Significant Risks

If the property has any significant physical defects or is exposed to risks, these must be disclosed. Common examples include:

• All swimming pool compliance matters;

• Any unlicensed or owner-builder work done in the last 6 years;

• Any notices or enforcement orders given under the Building Act or related legislation.

  
  

5. Rates, Utilities and Services

Information about rates and water must be provided. This includes the amounts payable for rates and water services in relation to the property.

6. Body Corporate Disclosure

For properties that are part of a body corporate, sellers must disclose details such as:

• A copy of the most recent community management statement for the scheme;

• A copy of the body corporate certificate for the lot, or an explanatory statement about why it isn’t;

• Specific information about Building Units and Group Titles Act schemes.

 

Where to Find the New Seller's Disclosure Form

The Queensland Government has introduced a prescribed disclosure form to streamline the process. This form ensures that all required information is disclosed in a structured and consistent manner. You can see the form here.

How to Prepare for the New Requirements

The new seller’s disclosure obligations will require careful preparation.

Real estate professionals can take the following steps to help sellers comply:

• Engage Early: Understand the property's history and compile the necessary documents well ahead of time as part of your early engagement process.

  
  

• Consult Legal Experts: Ensure that your seller gets legal advice to complete the disclosure requirements – agents should not be completing these forms, for reasons we will set out in another article.

  
  

• Educate Sellers: Inform property sellers of their responsibilities under the new framework to mitigate risk and avoid surprises.

  
  

Practical Takeaways for Real Estate Agents and Sellers

The incoming changes to disclosure obligations should be seen as an opportunity to enhance trust and transparency in the Queensland property market.

By helping your sellers comply with the updated framework, you not only minimise legal risks but also improve the buyer experience, paving the way for smoother transactions.

To ensure you're ready for 1 August 2025:

1. Familiarise yourself with the new legislation and prescribed forms.

2. Ensure that your seller gets legal advice to complete the disclosure requirements – agents should not be completing these forms.

3. Begin incorporating necessary questions for the disclosure requirements into your processes early to avoid last-minute issues.

4. Stay updated with industry training sessions and workshops on the Property Law Act 2023.

   
   

If you're feeling uncertain about where to start, feel free to reach out and we’d be happy to help you work through these changes. Proactive preparation is the key to staying ahead in an evolving regulatory landscape.