If you are going to sell property in Queensland, things are changing very quickly. Until now, Queensland has mostly followed the doctrine of caveat emptor, or buyer beware. But with the introduction of the Property Law Act 2023, a mandatory new seller disclosure in QLD came into effect.
At Dam Lawyers, we ensure our clients are ready. Whether you are selling a family house, a business unit, or even vacant land, failing to follow these new rules could result in crashed contracts and monetary loss. Here is everything you need to know about the seller disclosure statement QLD and what it means for your next sale.
What is the Seller Disclosure QLD Scheme?
Sellers of freehold land are now legally obligated to prepare a full disclosure document before a contract of sale is signed by a potential buyer in Queensland. This scheme aims to give buyers the right information at the outset, so they can make an educated decision that they won’t necessarily need to conduct initial searches at their own expense.
This involves residential sales, commercial properties, and even auctions, although the delivery method to the auction is slightly different.
What Goes Into the Seller Disclosure Statement QLD?
The seller disclosure statement is the keystone of this new regime. This is one document (approved form) that needs to be accompanied by ‘prescribed certificates’. The rules state that the new seller disclosure statement QLD, should include:
- Title Details: A title search for a current title and registered plan.
- Financials: Rates and water costs.
- Body Corporate: If the property is in a scheme, you will be asked to provide a body corporate certificate and community management statement.
- Zoning and Planning: Information on local zoning and whether there are any heritage listings.
- Notices and Orders: Any orders and notices remaining from government bodies – transport infrastructure proposals or resumption notices are applicable.
- Neighbourhood Disputes: Information on any orders or applications pertaining to trees or dividing fences.
- Pool Safety: A valid pool safety certificate or notice of no certificate.
- Environmental Issues: Where the land is held on the Contaminated Land Register or Environmental Management Register.
What is NOT Included?
The government has explained that the disclosure statement does not reflect a ‘catch-all’ across potential issues. The statement generally does not need to cover information about:
- Flooding history.
- Structural soundness of the building.
- Pest infestations (termites, etc).
- History of building approvals (except for unlicensed owner-builder work).
- Present or historical use of the property.
Buyers are still encouraged to do their own building and pest inspections and flood searches.
The Consequences of Non-Compliance
The seller disclosure obligations are strict. Not providing the statement before the buyer signs the contract means that they may have the right to terminate the contract at any time before settlement. In addition, if the information supplied is inaccurate or incomplete, the buyer also has grounds to terminate the contract. Most sellers cannot ‘fix’ a failure to disclose once the contract is executed.
Exceptions to the Rule
There are some exceptions where a seller disclosure statement is not required. These include:
- Sales with related parties, e.g., family members.
- Sales in which the buyer is a government or listed entity.
- Sales greater than $10 million on a commercial basis (if the buyer waives the requirement).
How Dam Lawyers Can Help
Creating a fully compliant seller disclosure statement in QLD is a lengthy task. It’s a matter of finding documentation from different departments of government and verifying that everything is correct. Don’t be taken by surprise by these changes. If you are planning to sell, contact Dam Lawyers to help.
With the correct certificates prepared together, we can make sure your sale goes smoothly and ensure you are on the right path with your disclosure statement. Contact us today to discuss your property needs.
