Why is selling your property so much more involved than selling any other possession? You can sell a piece of expensive furniture, or your car, for example, without a lengthy contract, with a minimal bill of sale, and instantly, if you choose to. But the high transaction value of property assets has made this a legally intensive process, meaning that the seller needs to fulfil certain rules and regulations by providing mandatory legal disclosures, public registration of title and multi-week settlement procedures.
Since August 2025, the Property Law Act 2023 (Qld) has introduced a strict seller disclosure regime. Previously, the seller had very limited obligations to disclose issues such as structural defects or planning restrictions, and the onus was on the buyer to identify any defects or issues with the property they were interested in purchasing.
Sellers now have a legal duty to investigate and disclose key property information rather than relying on the due diligence of the buyer, and failure to disclose this information can allow the buyers to terminate the contract, potentially right up to settlement.
What is the Seller Disclosure Statement (Form 2)?
The Seller Disclosure Statement is a comprehensive, multi-page, mandatory legal document that must be filled in correctly by the seller and be available for the buyer to see before they sign a contract. The disclosure must detail essential information in order to promote transparency in the transaction, and is designed to move away from the old “buyer beware” scheme and provide the buyer with more certainty and reduce risks.
The seller must disclose the property title and survey plan, and any registered or unregistered encumbrances attached to the property that may affect its use or value. Zoning or environmental issues, legal land use or heritage listings must be included, as well as any notices regarding the property condition, such as any tree disputes, contamination from pests or other hazardous materials, or owner-builder work with any relative, and any necessary certificates.
The seller must provide the latest council rates and water notices and disclose the total amount payable for all rates and charges, and details of any existing residential tenancy agreements.
Other Key Seller Obligations Before Settlement
Aside from providing a comprehensive disclosure package, the seller also has to fulfil other obligations in order to ensure a smooth sale. It is the seller’s responsibility to maintain the property in the same condition as when the contract was signed, and any fixtures, fittings or appliances that are staying are in working order for the buyer’s pre-settlement inspection.
It is also the seller’s obligation to prepare to clear any outstanding rates or taxes on the property before or at settlement. Your conveyancer will prepare the legal documents, and will work with you to review, sign and prepare all the documents and ensure that all contract terms are met.
Having a legal representative, such as a conveyancer or solicitor, is crucial for navigating the legal requirements and ensuring a smooth process, and addressing any buyer requests promptly through your conveyancer will further help the process to complete rapidly and without problems.
Benefits for Everyone
The recent legal changes in the property transfer process not only gives the buyer transparency and protection against unforeseen issues that may end up being a huge financial burden to them, but it also reduces the chance of any future disputes or legal issues for the seller, as they set out clear expectations of the property in their disclosure statement.
Being honest and transparent throughout the sale of your property will allow for a smooth and stress-free transaction for both parties.
