Queensland’s property law reforms are bringing in a mandatory seller disclosure regime for all residential property contracts signed on or after 1 August 2025. This new regime, under the Property Law Act 2023, introduces a standardised disclosure document known as the Form 2 Seller Disclosure Statement.

Whether you are a seller, real estate agent, or prospective buyer, it is essential to understand what this form requires, what it does not include, and how to avoid costly mistakes during the sale process.

What Is the Seller Disclosure Statement?

The Form 2 Seller Disclosure Statement is a compulsory document that sellers must provide to buyers before they sign the contract of sale. It contains key legal and factual information about the property, ensuring buyers can make informed decisions. If the seller fails to provide a compliant disclosure statement, the buyer may have the right to terminate the contract at any time before settlement.

The official Form 2 template is available on the Queensland Government Publications Portal.

What Must Be Disclosed

The seller disclosure statement requires specific details across several key areas. These include:

• The seller’s name and a current title search showing ownership and registered encumbrances
• Rates information, including the amount and period covered in the most recent council notice
• Water service charges, if separately listed on the rates notice
• Any unregistered encumbrances that will remain post-settlement, such as:
  • Residential or commercial leases that are not registered
  • Access or compensation agreements (including oral ones) under relevant legislation
  • Known unregistered easements, charges, or mortgages
  • Statutory encumbrances, including rights to access or maintain infrastructure
• For community titles schemes, a Body Corporate Certificate must be attached

The information must be true and accurate at the time it is given to the buyer.

Common Misunderstandings About What Must Be Disclosed

There are several matters that are often mistakenly believed to require disclosure, but which are either not mandatory or subject to specific conditions:

• Flooding: The form includes a general note advising buyers to conduct their own enquiries. There is no obligation for the seller to disclose known flood events unless they are making representations about the property that would be misleading or deceptive.
• Asbestos: The seller is not required to confirm the presence of asbestos. However, the disclosure form includes a general warning for buyers about asbestos risks.
• Infrastructure or planning proposals: The seller only needs to disclose official notices, such as a transport infrastructure proposal or a notice of intention to resume. Unofficial proposals found online do not need to be disclosed unless they materially impact the property and trigger obligations under Australian Consumer Law.

Signature Requirements

It is best practice for the buyer to sign the disclosure statement to acknowledge receipt before or at the time of signing the contract.

Although agents may use digital tools such as QR codes to deliver the document, these methods do not satisfy the requirement for proof of delivery. Without a signed acknowledgment, the buyer may later claim they did not receive the form in time, which could allow them to terminate the contract.

A signed and dated copy of the disclosure statement should be retained on file for all parties.

Common Errors That Can Lead to Buyer Termination Rights

To comply with the legislation and avoid granting the buyer a right to terminate, sellers and agents must ensure the disclosure statement is complete and accurate. Common pitfalls include:

• Failing to update the disclosure statement if material facts change before it is given to the buyer
• Not attaching a current title search or the seller’s name
• Omitting community title scheme documents where applicable
• Assuming exemptions apply when they do not (such as off-the-plan sales or mortgagee-in-possession cases)
• Delivering the disclosure form at the same time as the contract but without seller signature or proper buyer acknowledgment

The disclosure must be correct and complete at the time it is provided to the buyer. If something changes afterward and materially affects the buyer’s decision, they may still have a right to terminate.

Preparing and Issuing the Disclosure Statement

The seller is responsible for providing the disclosure statement, but agents can assist by coordinating searches and compiling documents. However, agents should only complete the form using verified search results or written instructions from the seller.

If the seller will be unavailable for a period of time, it is recommended that written authority be provided to the agent to update the disclosure statement if necessary.

The form can be signed electronically, and there is no restriction on preparing and issuing it early, even before 1 August 2025. However, if the contract is signed before 1 August 2025, the new disclosure regime does not apply.

Final Thoughts

The new seller disclosure statement regime represents a significant change in Queensland property transactions. While it creates greater certainty for buyers, it also places new compliance obligations on sellers and agents. Preparing early, checking for updates, and retaining signed copies are critical steps in avoiding disputes or termination risks.

If you require assistance in preparing or reviewing a seller disclosure statement, contact Ensure Legal. Our team can guide you through every stage of the sale to ensure your transaction is compliant and secure.