In this blog/video, we explain how a $50 document just saved a client from a $1.2 million mistake — and from 1 August 2025, it won’t be optional.

We break down Queensland’s new Seller’s Disclosure laws kicking in, the Community Management Statement (CMS) will become a mandatory part of every disclosure pack for body corporate properties. Miss it, and the buyer can walk — even on an unconditional contract.

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Hi everybody - George Sourris, Empire Legal.

Today's topic: How a $50 search saved a client $1.2M — and why it’ll soon be mandatory in QLD

Sometimes it's the smallest detail that saves the biggest deals. In this case, a $50 search. From the 1st of August 2025, that $50 will no longer be optional, thanks to Queensland's new Property Law Act of 2023, the Community Management Statement (CMS) will become a mandatory part of every seller's disclosure pack for properties in a body corporate.

But, smart agents aren't waiting for the deadline, because the risk is already real. Here's how a one $50 document saved a client from a $1.2 million mistake.

A buyer had signed a contract for a high-end, $1.2 million apartment in Brisbane's inner suburbs. City views, rooftop pool, everything was on track. The buyer's plan? Live in the unit part-time, and list it on Airbnb while they travel.

The contract was not yet signed when our team was engaged for a pre-contract review. We ordered the CMS search, just $50, and thank goodness we did. Buried in the bylaws was a strict ban on short term letting - no Airbnb, no exemptions. If the buyer had settled and started operating as an Airbnb, they would've been in breach from day one.

That's not just a headache, that's litigation, penalties and a fundamentally broken investment strategy. Because of the early CMS check, the buyer could, before locking themselves into an unconditional contract, exit.

No penalties, no fallout, just clean exit and a huge sigh of relief.

What is a CMS and why is it important?

A CMS (Community Management Statement) is the legal blueprint for every Community Title Scheme in Queensland. Registered with the Title's office, it sets out bylaws - so, pets, short-term, letting, renovations, noise, smoking, and more. Exclusive use allocations, think car parks, courtyards, storage cages, lot entitlements, which determine how levies are calculated, plus more.

Unlike a strata inspection or a disclosure statement, the CMS is the final word. It's current, it's enforceable, and it can absolutely ruin your plans if you don't read it and understand it. From 01 August, 2025, the CMS becomes compulsory disclosure in Queensland, under the new Form 2 Seller's Disclosure statement regime.

If your client is selling a unit, a townhouse, or any property governed by a body corporate, they will be legally required to hand over a completed Form 2 statement with prescribed documentation, which includes the CMS. Failing to do so? Buyers can terminate the contract all the way up until settlement, even if the contract is unconditional and everything else is ready to go.

That's right guys, an incomplete or missing CMS could cost the seller their contract and the deal can fall over. What agents need to know now.

Even before 01 August, the CMS plays a critical role in protecting your clients and yourselves from nasty post-contract surprises. Avoid buyer terminations during the due diligence period, disclose sensitive bylaws, like: no pets, no short term letting or no smoking upfront, and clarify exclusive use areas before disputes arise.

Most sellers haven't read their CMS, many don't even have it. That's why the law is now changing to include the CMS as obligatory, so that you, real estate agents and your clients aren't left exposed. The bottom line - a $50 CMS search saved a client a $1.2 million headache, and from 1st of August, 2025, it won't be optional.

Make sure if you're a selling agent or a vendor, you understand what the CMS is, so you're armed with the knowledge you need when a curious buyer comes out of the woodwork. Also, from 01 August, 2025, there will be a new standard clause called the "Body Corporate Search", like a building and pest and finance clause, allowing a timeframe for the buyer to inspect the body corporate records. This is without the need of a special condition, and of course, it's subject to negotiation, meaning it requires the seller to agree.

Thanks guys. That's it for this week, CMS - nothing to scoff at. These bylaws are important. Make sure you digest them and understand them. Please, if we've added value to you, all we ask is that you share this content for free. Give it a like, maybe give it a comment. All of the above. Up to you. Just do something! Thanks heaps. Guys, we're probably the only law firm out there, we know at least, doing property law updates for Queensland for free. Share it with your friends.

That's it for this week, guys. Hope you learned something. Please share it with a friend. It's all free content. Empire Legal. Here to help. Over 12,000 deals successfully transacted, over 2,700 Google reviews, five star, average, most trusted name in Queensland conveyancing. Thank you all. See you next week.

Finally, if you haven't heard, we've just launched our podcast. It's called Raising the Bar, where we story tell excellence in Queensland property. Here is the link to listen. If you prefer to watch, here is the YouTube link.

Also, stay up to date with our miniseries on Seller's Disclosure.

Thanks guys. We'll see you next week!

If you know anyone that is involved in Queensland property, or is just genuinely curious - send them our page, send them our channel. It's all free content. We just want to help you be armed with the tools to make good decisions. Check out our website for more blogs. We've got over 100! 

We want to help you. If you've been listening to us for a while, but you haven't made contact, please do! We want to help people buy and sell homes and deliver QLD's best conveyancing experience. Thanks guys, we'll see you next week.

Subscribe to our YouTube and our blog. We're giving out this content for FREE to help you and your peers. Spread the good word of Empire Legal. We want to help everyone make property law in Queensland easy and smooth sailing. 

If you have any questions, you can email me: george@empirelegal.com.au. 

If this has added value, please share this blog / the YouTube video with a friend. 

Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.