Three weeks ago, through our Knowledge Exchange, we had the pleasure of welcoming our partner, George Surris from Empire Legal, who delivered a presentation on the upcoming changes to property law regulations taking effect from 1 August 2025.
Here is the key take away from his presentation.
A Guide for Commercial Property Sellers in Queensland (Effective 1 August 2025)
A major shift is coming to Queensland property law. From 1 August 2025, sellers of most freehold properties—commercial and residential—will be legally required to provide disclosure documentation before a contract or option agreement is signed.
This obligation is part of the Property Law Act 2023 (Qld) and represents the most significant reform to Queensland conveyancing law in decades. The aim is to improve transparency for buyers and reduce post-contract disputes.
What Is the New Law?
Under Section 99 of the Property Law Act 2023 (Qld), sellers must give buyers:
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A Seller Disclosure Statement (Form 2)
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A set of prescribed certificates and supporting documents
This must occur before the buyer signs the contract. Failing to comply gives the buyer a statutory right to terminate before settlement—and there is no ability to contract out of this requirement.
Authorised agents, such as real estate professionals, can prepare and issue Form 2 on the seller’s behalf—but it must be completed accurately and on time.
Official References:
What Must Sellers Provide?
1. Form 2 – Seller Disclosure Statement
Form 2 must disclose:
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Lot and plan details
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Seller's name and contact
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Whether the property is part of a body corporate or a community titles scheme
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Encumbrances, leases, and easements
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Compliance with pool safety laws (if applicable)
Form 2 can be signed electronically by the seller or an authorised agent. It must be in the approved format, accurate, and up to date when provided.
2. Prescribed Certificates and Supporting Documents
These vary depending on the property, but may include:
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Current title search
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Registered survey plan
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Registered and unregistered encumbrances
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Unregistered leases or private tenancy agreements (written or verbal)
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Contaminated land search
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Pool safety certificate or non-compliance notice
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Planning and zoning certificates
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Show cause or enforcement notices under the Building Act or Planning Act
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Community Management Statement (CMS)
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Body Corporate Certificate (if in a scheme)
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Current rates and water bills
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QCAT orders affecting the property
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Heritage register search
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Road searches and future infrastructure notices
Every document must be current and accurate at the time of disclosure.
What Is Not Covered?
Buyers must still investigate:
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Building and pest issues
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Asbestos or hazardous materials
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General utility connections
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Historical approvals
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Flood history (unless misrepresented)
Disclosure law does not remove the buyer’s responsibility for broader due diligence.
Exemptions to the Disclosure Requirement
Disclosure is not required for:
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Sales to government bodies or listed public companies
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Transactions with related parties
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Sales over $10 million, with buyer’s written waiver
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Transfers under a court order or family law arrangement
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Off-the-plan sales (unregistered land or proposed lots)
Even if you believe your sale qualifies for exemption, always confirm through legal advice.
What Happens If You Do Not Comply?
Failure to comply could mean:
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Buyer may terminate the contract at any time before settlement
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Full refund of deposit and other monies paid
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Potential liability for buyer losses
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Special conditions attempting to override disclosure rules are void
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Outdated, incorrect or missing documents create legal risk and delay
As Empire Legal and others at the Queensland Law Society’s Seller Disclosure Roadshow have highlighted:
“No Seller's Disclosure Statement = No Contract.
Wrong statement = Termination risk.
Outdated statement = Delay, dispute, or contract failure.”
What Agents and Sellers Should Do Now
Early preparation is key. Agents and sellers should:
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Begin collecting required documents as soon as the property is listed
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Engage legal professionals to assist with verification
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Ensure the appointed agent understands their obligations if authorised to issue Form 2
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Update listing authorities and agency agreements to reflect the cost and timing of searches
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Educate clients about the importance of upfront compliance
Final Thoughts
The Seller Disclosure Statement (Form 2) is no longer optional—it is mandatory. This reform flips the traditional “buyer beware” model on its head, requiring sellers to proactively disclose known and knowable information before contracts are signed.
Whether you are selling residential or commercial property, the message is clear: Prepare early, comply fully, and work with experienced professionals.
For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.
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