How QLD’s New Disclosure Laws Affect Buyers

From 1 August 2025, significant changes to property sales in Queensland will take effect under the Property Law Act 2023 (Qld). The new seller disclosure regime requires sellers to provide buyers with a completed and signed Form 2 Seller Disclosure Statement along with all prescribed certificates before a contract is signed. If sellers fail to meet these requirements, buyers may gain legal rights to terminate the agreement.

More information on these laws can be found here.

Buyer Termination Rights Under the New Law

Section 104 of the Property Law Act 2023 outlines clear grounds on which buyers can terminate a contract. These include:

1. Failure to Provide Disclosure Documents

If the seller does not provide the Form 2 Seller Disclosure Statement and required certificates before the buyer signs the contract, the buyer may terminate the contract at any time before settlement. This right is automatic and does not require the buyer to show any loss or disadvantage.

2. Inaccurate or Incomplete Disclosure

Buyers may also terminate the contract if the disclosure documents contain inaccurate or incomplete information about a material matter, and:

• The buyer did not know the correct information when signing the contract, and
• The buyer can demonstrate they would not have entered the contract if they had known the truth.

What Is a Material Matter?

A material matter is any fact or condition that could reasonably influence a buyer’s decision to purchase the property. Examples include:

• An undisclosed easement restricting future development
• A zoning classification that prevents the buyer’s intended use
• A contamination notice affecting land value or usability
• An unregistered lease that prevents full vacant possession

Some issues are excluded from being classed as material matters, such as swimming pools, water service details, and general rates information.

What This Means for Sellers and Real Estate Agents

Failing to comply with the disclosure regime can lead to:

• Termination of the contract by the buyer at any time before settlement
• Full refund of the deposit, including any interest earned, within 14 days of termination
• Loss of commission for agents if the contract is terminated before settlement, particularly when payment is dependent on the contract settling

How Sellers Can Stay Compliant

To minimise risk and ensure a smooth transaction:

• Prepare early: Start compiling documents and complete the Form 2 Seller Disclosure Statement well before going to market
• Check for accuracy: Make sure all disclosures are thorough and correct, especially material matters
• Seek professional support: Work with a legal advisor or qualified real estate agent to ensure all documents meet the new legal standards

Complying with the updated disclosure laws is essential for protecting the transaction and avoiding costly contract terminations. For a detailed overview, refer to the REIQ’s official article on buyer termination rights under the new seller disclosure regime.

Disclaimer: This content is for general information only and does not constitute legal advice. Always seek legal guidance for your specific situation.