Selling a Body Corporate Property in Queensland — What Sellers Must Know Under the New 2025 Disclosure Law

When selling a body corporate property in Queensland, compliance is no longer a box-ticking exercise.
Since 1 August 2025, the Property Law Act 2023 (Qld) and the Seller Disclosure Scheme have redefined how information must be provided to buyers — especially for community titles scheme (CTS) properties such as apartments, townhouses, and mixed-use complexes.

At Ensure Legal, we help sellers and agents navigate this new regime, ensuring every disclosure document is compliant, every deadline met, and every contract protected from buyer termination risk.


Why Selling a Body Corporate Property Is Different

Unlike selling a standalone freehold house, selling a lot in a body corporate scheme involves additional statutory disclosure.
Buyers are not only purchasing your individual lot — they are also buying into a shared scheme that has its own by-laws, financial obligations, and common-property responsibilities.

That’s why Queensland law requires sellers to provide three key documents before the buyer signs the contract:

  1. Body Corporate Certificate (BCCM Form 33 or 34)
  2. Seller Disclosure Statement (Form 2 under the Property Law Act 2023)
  3. Community Management Statement (CMS)

Failing to provide any of these correctly may allow the buyer to terminate the contract at any time before settlement — even if finance is already approved.


1. The Body Corporate Certificate — Your Buyer’s Window into the Scheme

The body corporate certificate is the single most critical disclosure document.
It confirms the financial, legal, and operational status of the scheme at the time of sale.

What the Certificate Must Include

A valid certificate provides the buyer with:

  • Levies and arrears: amounts currently due or payable in advance.
  • Regulation module: whether the scheme is under the standard, small, accommodation, commercial or two-lot module.
  • Registered improvements: for example, decks or patios built on common property that the lot owner must maintain.
  • Body corporate by-laws and contracts: including caretaking or letting agreements, if applicable.

How to Obtain It

The seller (or their lawyer or agent) must formally request the certificate in writing from the body corporate or its manager and pay the statutory fee.
The body corporate must issue it within 5 business days, or within 24 hours for an urgent (higher-fee) request.

The certificate remains accurate only as of the date of issue, so if the sale takes longer than expected or levies change, you should request an updated version (at a reduced fee if within 3 months).

When a Certificate May Not Be Available

In rare cases — such as missing or destroyed records, or a newly formed scheme still under developer control — the body corporate may instead provide a written statement explaining why a certificate cannot be issued.
That document must still be given to the buyer before they sign the contract.


2. The Seller Disclosure Statement — Now a Legal Requirement

From 1 August 2025, all Queensland property sales require a Seller Disclosure Statement (Form 2).
This document, signed by the seller, gives buyers core information about the property — including zoning, encumbrances, easements, heritage listings, flood risks, and other registered interests.

What Body Corporate Sellers Must Add

If the property forms part of a body corporate scheme, Section 6 of the form must be completed.
You must confirm that:

  • A body corporate certificate has been or will be provided, and
  • The buyer will receive a copy of the Community Management Statement.

Failure to disclose, or disclosing incorrect information, gives the buyer a statutory right to terminate before settlement and recover all deposits paid.


3. The Community Management Statement (CMS) — The Rulebook of the Scheme

The CMS is the legal backbone of every body corporate.
It defines:

  • The scheme’s by-laws (rules about noise, pets, renovations, parking, etc.),
  • Lot entitlements (how levies are apportioned), and
  • Any exclusive-use allocations or common property rights.

The CMS must be provided to the buyer before they sign.
If the by-laws are already incorporated into the body corporate certificate, a separate copy may not be necessary — but best practice is to attach it nonetheless.


Legal and Practical Implications for Sellers

Avoiding Contract Termination

If any required disclosure document is missing or inaccurate, the buyer may terminate the contract up until settlement.
This can occur even after finance approval or unconditional acceptance.
Ensure Legal reviews every disclosure pack for accuracy and compliance before release, protecting sellers from avoidable contract risk.

Timing and Evidence

All documents must be given before the buyer signs.
For best practice, sellers should:

  1. Keep written proof of delivery (email receipt or signed acknowledgement).
  2. Retain copies of all forms for audit and risk management.
  3. Re-check records if more than 30 days pass between disclosure and contract signing.

Why This Matters — A Shift Towards Transparency

The 2025 disclosure regime moves Queensland property law from “buyer beware” to “informed transaction.”
Body corporate properties involve layers of financial and governance complexity that can easily derail a sale if not disclosed properly.

Ensure Legal’s property team ensures every disclosure is watertight — giving both sellers and buyers peace of mind, and ensuring the contract remains enforceable.


How Ensure Legal Assists Sellers

Our team can:

  • Request and verify the body corporate certificate directly with the manager.
  • Prepare and review the Seller Disclosure Statement (Form 2) to ensure legal accuracy.
  • Cross-check the Community Management Statement for by-law changes or missing attachments.
  • Advise on risk mitigation where a certificate cannot be issued or scheme records are incomplete.
  • Coordinate settlement adjustments for levies and sinking-fund contributions.

By engaging a property lawyer early, sellers protect themselves from unnecessary disputes, buyer terminations, and settlement delays.


Final Thoughts

Selling a body corporate lot in Queensland is no longer a routine conveyance.
It is a compliance-driven legal process requiring precision, timing, and understanding of both the Property Law Act 2023 and the BCCM Act.

At Ensure Legal, we specialise in body corporate and commercial property transactions across Brisbane, the Gold Coast, and regional Queensland.
Whether you are selling an apartment, townhouse, or mixed-use strata lot, our lawyers ensure your disclosure is accurate, compliant, and legally secure.

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