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Hi everybody - George Sourris, Empire Legal.
Today's topic: First look at the New Seller’s Disclosure Statement (Form 2) QLD
Big topic this week, new Seller's Disclosure regime. It's had heaps of hype in the media. Today we are talking through, page by page, the 7 pages of the Form 2 - the new form coming 01 of August 2025.
I suggest watching the YouTube video (above) for the best experience digesting this content.
Make sure you take the time to educate yourself. This new disclosure regime is coming, whether you like it or not! It is only 10 months away. OK, let's get into it.
The new Seller's Disclosure Pack. It's a Form 2, and it's coming into Force on the 1st of August 2025. So we've got a little bit of time up our sleeve before the launch date, but really there is bit to learn, and new processes need to be built, so that we're not blindsided when 01 August 2025 creeps around - which always happens faster than we think it will.
You can download a copy of the Form 2 Seller Disclosure Statement here.
Alright, so let's just jump in. First thing - a warning to the buyer. There's important legal information here. You need to understand what you're signing. You need to seek legal advice. You should not assume you can terminate the contract after signing if you're not satisfied with the information in this statement.
So, this has to be given BEFORE the buyer signs. The seller signs first and provides this pack of information to the buyer. A disclaimer again at the start, so we're not going to have information about flooding, structural soundness of the building or pest, current or historical use of the property, current or past building or development approvals of the property. Any planning law limitations, any services that are connected, or the presence of asbestos.
So it is expressly flagging here that people should do their own due diligence before signing as that's not going to form part of this information pack. This is a 7 page document. It's actually available straight off the government website now, so anyone can jump on and download it (link above), but let's get everybody familiar with what has to be filled out.
Think of this similar to a S206 disclosure statement on a Community Title Scheme, but it's going to apply to all land in Queensland for sale.
PART ONE
This section is pretty straightforward. Seller puts in their information. So name, property address, lot and plan description. Then it asks if the property is part of a Community Title Scheme (CTS) or Building Unit Group Title Act (BUGTA).
So if yes, part 6 has to be filled out later. If no, part 6 is not required and we're just talking about freehold land.
PART TWO
The seller gives or has given the buyer the following: a title search - you have to give that, so make sure you do. A copy of the plan of survey, same deal, yes you have to give a copy.
Next, registered encumbrances - if there's any that may affect the use of the property, examples are easements, covenants, leases, mortgages. Then unregistered encumbrances. So if the vendor knows there are any encumbrances not registered on title that will continue after settlement - that's disclosed there.
A good example here is say for example there could be sewer or stormwater infrastructure that's not necessarily on the title, but when you do a dial before you dig or a PropCheck or something of the equivalent it appears or the vendor has knowledge that it's there - they have to disclose.
Next section - unregistered lease. So if the unregistered encumbrance is an unregistered lease, the details are as follows. Start and end, date of the term, amount of rent and bond, and whether there's a renew option. And if the unregistered encumbrance is created by an agreement in writing and it's not an unregistered lease, a copy of the agreement is given with any relevant plans. So again, if applicable, that has to be given. And if there's any unregistered oral agreement, the details have to appear here.
Next section, statutory encumbrances. So are there any statutory encumbrances? Yes/no. If yes, explain what they are.
Residential, Tenancy or Rooming Accommodations. So we should all be pretty familiar with this now as these new laws have come in with the rent increase not being allowed within a 12 month window.
Is the property subject to a residential tenancy agreement or a rooming accommodation agreement, yes/no? If yes, when was the rent last increased - with the date here, then a disclaimer saying that it has to be at least 12 months since the last rent increase.
PART THREE
Land use, Planning and Environment.
Warning to the buyer. You may not have any rights if the current or proposed use of the property is not lawful under the local planning scheme. You can obtain further information from the local government. So the zoning has to be put down here. Again, if this is unknown, this can be looked up on something like RP data, or local council website.
Transport proposals and resumptions. If the lot is affected by a notice issued by the Commonwealth, State or Local Government about any sort of resumption of land, so transport and main roads - again, if you're in a back street of a quiet suburb, probably unlikely, but if you've gotten any correspondence, if you're on a main road or an arterial, that they're going to resume that land - that has to be disclosed. Then, a copy of the notice must be given at the same time.
Next, contamination and environmental protection. So, contaminated land or anything that is protected. So, is it on the register? Yes/no. And following notices. So, if there's anything for a site cleanup environmental enforcements or transitional environmental programs. Again, if this applies to your property, you'll probably have knowledge & notices. If so, you must disclose.
Next section, we're probably pretty familiar with these next few. We've seen them in our REIQ contracts. So, is there a tree order affecting the property? Yes/no. If yes, you've got to give a copy of the order.
Heritage - if it's on the Queensland Heritage Act register or the Commonwealth version. So, is there any heritage over the property? Yes/no.
Flooding - it specifically says here that flooding can be obtained from the local government and it's outside of the scope of this disclosure statement. So at this point this is still a buyer beware situation where the buyer should do their own due diligence for flooding. It's all free and it's online and simple - FloodCheck Queensland. Jump on and have a look.
Next section, vegetation, habitats and protected plants. So this information can be obtained from the government website here.
PART FOUR
Building and structures. The seller does not warrant the structural soundness of buildings or improvements on the property, or that the buildings have the required approval, or that there is no pest infestation affecting the property.
So, a building and pest is still huge guys - and obviously, if you have any concerns about final approvals for any works that have been done, undertaking that beforehand too (or adding in a Special Condition to the contract of sale).
Swimming pool, again, should be familiar for most people here. Is there a pool? Yes/no. Is it on a shared lot? Yes, no. Is there a pool compliance certificate given? Yes/no. Or, if not, a notice of no pool safety given. If this informaiton is filled out incorrectly, it is going to give the buyer a continuing right to terminate, and the right to pursue the vendor for any losses suffered - so it's critical that Real Estate Agent's get this form right.
If you get it wrong, I'm sure you'll only do it once because it will cost you a deal.
Next section, owner builder. So, has there been an owner builder permit in the last 6 years? Yes/no. If yes, then there's a one page form that has to be given. I've done a blog on this last year. Here is the link.
Notices and orders. So unsatisfied show cause notice if there is you need to disclose it. The seller has been given a notice or order that remains in effect from a State, Local or Commonwealth Government, court, tribunal or other authority requiring work to be done or money to be spent. If yes, you must give a copy so that the buyer knows what they're getting into.
This next section won't apply to the majority of people reading here, but if it is a commercial office building of more than 1,000m2, you need a building energy efficiency certificate.
Next, another disclaimer saying that the seller does not warrant any asbestos, whether that's there or not. So, buyer beware of asbestos.
PART FIVE
Rates and services. So, you need to put the amount of the rates of the most recent rates notice and the date range. Or if it's an exempt lot, you have to put that there. I mean, I haven't really seen one of them before, so pretty unlikely.
All right. Next section. Water - same deal. So water notice amount and date range. If it's no separate water service, estimate of the total amount.
PART SIX
This section is that part 6 section we were talking about at the start - it applies only for Community Title Scheme and BUGTA group title (properties with a Body Corporate).
It begins with a warning - if the property is part of a Community Title Scheme or BUGTA scheme and you purchase the property, you will become a member of the body corporate for the scheme with the right to participate in significant decisions about the scheme and required to pay contributions towards the body corporate's expenses in managing the scheme and comply with the bylaws.
So, basically, if you're buying in a body corporate, you're part of a community title. It's a group environment, with your lot, neighbouring lots, and common (shared) property. So, is the property property in a Community Title Scheme? Yes, no. Easiest way to check this one, guys, is if there's a title search, it'll say if it is. So, do a title search.
Community Management Statement. A copy of the most recent Community Management Statement, is given to the buyer. Yes, so you've got to give that. You've got to get a copy of the CMS. This is a big change. We've never had to do this before. You can get the CMS, contact the Body Corporate and they can help you get it.
Next one, the Section 206 Disclosure is to be given to the buyer. So it's going to give you all the information about that property. Every selling agent that sells Community Title Schemes should be familiar with this. If no, an explanatory statement is given to the buyer that states it's not attached and the reason under section 6 as to why they haven't been able to obtain a copy. I wouldn't be relying on this, I'd be making sure you get one.
Statutory warranties, so if you enter into a contract you'll have implied warranties under the BCCMA, Body Corporate Community Management Act.
Is the property included in BUGTA? Yes/no. Similar concept here. Is there a body corporate certificate? Yes/no.
FINAL SECTION - SIGNING BLOCKS
Next, the seller signing blocks. Remember, seller must sign first, otherwise, buyer can get out of the contract. Last section, buyer signing blocks - acknowledging they've been given this disclosure statement and they've got all the information.
And once that's done, that's the end! And yes, the document can be electronically signed.
Obviously, huge, huge change guys. These 7 pages, we're going to have to get very, very familiar with them!
Good news, we've still got about 10 months to go before the live date of 01 August 2025.
Any questions, please get in touch.
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George Sourris. Empire Legal.
If you have any questions, you can email me: george@empirelegal.com.au.
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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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