Queensland’s Property Law Act: New seller disclosure requirements from 1 August 2025

The long-awaited Property Law Act 2023 (Qld) (PLA) comes into effect on 1 August 2025, bringing in a major overhaul of Queensland’s property laws. One of the most significant changes is the introduction of a comprehensive seller disclosure regime, designed to modernise property transactions and enhance transparency for buyers.

In this article, we take a practical look at the new seller disclosure requirements and explain another key change in the legislation that reduces the statutory limitation period for actions on deeds from 12 years to six years.

Key disclosure requirements for sellers before contract signing

Under the new legislation, a seller must now provide a seller disclosure statement (form 2) and certain prescribed certificates to a buyer before the contract is signed by the buyer. This reform ensures that buyers receive essential information about the property upfront and promotes ‘fair dealings’.

What information must be included in the seller disclosure statement?  

The disclosure statement must contain the information prescribed by regulation, which must be true at the time the statement is given. The required information is comprehensive and includes:

• the lot and plan description of the property
• whether the property is part of a community titles scheme or a scheme under the Building Units and Group Titles Act 1980 (BUGTA)
• details of unregistered encumbrances, including statutory encumbrances
• zoning information
• whether the property is listed on the environmental management or contaminated land register
• neighbourhood disputes
• transport infrastructure proposals affecting the property
• heritage listings
• notices of intention to resume any part of the property
• council and water rates charges
• presence of a pool on the property
• residential tenancy agreements.

Sellers can access the seller disclosure statement (form 2) here.

Which prescribed certificates must sellers provide?

In addition to the seller disclosure statement, the seller must provide certain documents prescribed by regulation. The prescribed certificates include:

• title search
• copy of the registered plan
• a body corporate certificate and copy of the community management statement if the property is included in a community title scheme or BUGTA scheme
• notices under other legislation, including the Queensland Building and Construction Commission Act 1991, Building Act 1975, Planning Act 2016 and Environmental Protection Act 1994.

While these documents do not have to be attached to the disclosure statement or sent simultaneously, it is best practice to annex all the prescribed certificates to the disclosure statement so there is clear evidence that the seller has complied with their requirements. 

Consequences of failing to comply with seller disclosure requirements

Generally, a buyer may terminate a contract at any time before settlement if a seller:

• fails to provide a compliant seller disclosure statement or prescribed certificate before the buyer signs the contract; or
• provides a disclosure statement or a prescribed certificate that is:
  • inaccurate or incomplete in relation to a material matter affecting the property
  • the buyer was unaware of the true state of affairs at the time they signed the contract
  • if the buyer had known, they would not have proceeded to sign the contract.

If the contract is terminated, the buyer is entitled to a full refund of all money paid, including any interest accrued on that amount.

The legislation leaves the term ‘material matter’ open for interpretation, with the exception that it excludes information relating to the property’s council and water rates. Given the consumer protection focus of the new regime, it is anticipated that courts will take a buyer-friendly approach when interpreting these provisions. 

However, if the seller’s failure to comply also breaches other statutory obligations, and the other legislation provides a consequence to the seller for such a failure (other than a penalty), then the termination right under the PLA may not apply. For example, if a seller fails to give the buyer a notice under section 408 of the Environmental Protection Act 1994, the buyer may rescind the agreement to purchase under that Act.

Sellers should also consider whether:

• failure to provide accurate information with the disclosure statement amounts to a misrepresentation or misleading and deceptive conduct, giving the buyer a right to compensation or other remedies at common law or under the Australian Consumer Law
• a contractual breach or a breach of a warranty that is not a failure to disclose under the seller disclosure regime may give the buyer a right to terminate the contract or contractual damages.

What about off-the-plan lots?

Importantly, the new PLA disclosure requirements do not apply to ‘proposed lots’ being sold off-the-plan. These transactions remain governed by the disclosure regimes under the Land Sales Act 1984 (Qld) and Body Corporate and Community Management Act 1997 (Qld) (BCCMA).

However, developers of community title scheme properties must now provide a copy of any building management statement that will apply to the scheme land as part of their disclosure requirements under section 213 of the BCCMA.

Exceptions to the seller disclosure regime

There are a number of other exemptions to the seller disclosure regime, including:

• buyer and seller are related (within the meaning of the PLA) and the buyer provides a waiver notice
• buyer is the state, commonwealth, another state, local government, or constructing authority
• buyer is a listed corporation or subsidiary of a listed corporation
• buyer and seller are co-owners
• contract gives effect to a court order or a financial agreement
• contract arises from the exercise of an option (with no nomination) and the seller gave a compliant disclosure statement and prescribed certificates on entering into the option
• the purchase price is greater than $10 million (including GST) and the buyer provides a waiver notice
• the state is selling a property to a buyer that has been a tenant of the property for at least three years and gives the buyer a compliant notice
• boundary realignments between neighbouring land owners.

Whether or not an exemption applies requires careful consideration of the definitions in the PLA. To reduce the risk of non-compliance, sellers should seek legal advice before relying on an exemption. 

Key takeaways

While the new seller disclosure regime enhances protection for buyers, we anticipate several significant challenges for sellers, including:

• increased costs: Sellers will need to incur additional expenses preparing a compliant disclosure statement and obtaining the relevant prescribed certificates
• potential delays: We anticipate increased negotiations prior to contract signing, with parties seeking to allocate risks identified in disclosure statements and prescribed certificates
• termination risk: Buyers looking to exit contracts will carefully scrutinise disclosure statements and prescribed certificates to identify non-compliance or inaccuracies that could justify terminating the contract.

Sellers should conduct appropriate due diligence and seek legal advice to mitigate the risks associated with the new regime. 

Deeds in Queensland will no longer provide the extended limitation period that principals and contractors have historically relied upon. The PLA reduces the limitation period for actions under a deed from 12 years to six years, bringing it into line with ordinary contracts.

For the construction industry, the change narrows the gap between deeds and standard contracts. Its main impact will be in relation to latent defects, which can take years to surface. Deeds were often favoured on large or complex projects for this reason, as they gave principals extra time to bring claims. Going forward, if parties want a longer period to pursue breach of contract claims, they will need to expressly include it in their agreement.

This change effects deeds entered into from 1 August 2025. But there is some uncertainty as to whether the 12-year limitation period for a deed entered into before that date will be preserved if the deed is varied anytime from 1 August 2025.

The reduction of the deed limitation period to six years removes a long-standing safety net in Queensland when deeds are utilised. Parties should review their contracting approach and, where extended protection against latent defects is needed, ensure a longer period is expressly agreed and properly drafted into the contract.

If you need assistance with reviewing the required documents or have any questions about how the new Property Law Act may impact you or your business, please get in touch with our team below.

Disclaimer
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.

Published by:

Grace Wimberley

Kirsty Smith

Samantha Hill, Jasmine Matthews

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