In this blog/video, we unpack how in Queensland, even off-market deals now require a full Form 2 Seller's Disclosure before the buyer signs.

At Empire Legal, we prepare complete off-market Form 2 packs, so you're contract ready the moment a buyer appears. No shortcuts. Just clean, compliant deals done right! Lets dive in...

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Hi everybody - George Sourris, Empire Legal.

Today's topic: Off-market property deals in QLD - the landscape has changed...

Today we're talking about off market deals in Queensland. For years, an off market sale in Queensland could be pulled together with a quick phone call between a seller, an agent and a motivated buyer.

That era has changed. As we know, as at the 1st of August this year, Queensland's new Sellers Disclosure scheme requires a completed Form 2 Seller's Disclosure statement, plus prescribed certificates to be given before the buyer signs a contract. If the paperwork isn't ready, the deal can't be signed without the buyer gaining a continuing right to terminate and walk at any time, all the way up until settlement.

Let's talk about off market reality. The seller needing to invest early.

 An off-market sale is not exempt from disclosure obligations. Agents are still expected to deliver the same legal hygiene as a public campaign, including providing Form 2 and the prescribed certificates before the buyer signs. If you hold off on searches until you have an offer, you'll delay the moment the buyer can sign, which undermines the speed advantage of an off market deal.

Bottom line - to move fast off market, the seller needs to have some skin in the game up front. So commissioning the Form 2 and key certificates now, so a buyer can sign immediately when they appear.

Agents - this means conditioning your vendors that they will need to spend the money on the Form 2 disclosure pack, otherwise, your hot buyer could go very cold waiting for a Form 2 to be completed and the searches to come back, and therefore the deal will be lost.

What goes into the Form 2 and certificates?

If you're an interstate listener or new to the latest Queensland disclosure updates, let's explain very quickly in 30 seconds. Form 2 captures key information about a lot, title and encumbrances planning and environmental flags, pools, and building notices, rates and services. Prescribed certificates typically include: a current title, search and survey plan, relevant building or environmental notices, and for Community Title Schemes, the Body Corporate certificate and CMS.

Imagine it's like a road roadworthy for a car, so it gets provided by the seller, but it's not an exhaustive list of everything that could be wrong with the property.

So what's not required to be disclosed?

Structural soundness, flood history and previous building approvals are not part of the Form 2 tick box items. If those matters mean something to the buyer, they should be addressed proactively through searches, reports, or contract conditions.

Okay. Who should prepare a Form 2?

Sellers can task their solicitor, their agent, or a third party provider to prepare the Form 2. If the agent is doing it, they'll usually need an REIQ disclosure instructions and search authority, and must not provide legal advice as to what is disclosed.

Either way, accuracy matters because disclosure errors can lead to buyer termination rights, which nobody wants.

Quick, practical, off off-market game plan.

Step 1 - engage early. Loop in your lawyer before you start making calls. The fastest off market deals are the ones that did the paperwork first.

Step 2 - complete the Form 2 now, and keep it current. Form 2 needs to be true at the time it was given. If something changes before signing, update and re-give. Keeping simple proof of delivery like signing, acknowledgements, electronic logs, et cetera, are essential.

Step 3 - have auction ready standards, even off market. For auctions, disclosure must be given or made available before the fall of the hammer upfront. Treat off market deals in the same manner, if you want your buyer to sign on the spot.

Step 4 - don't gamble on the sign now, tidy later option. If the buyer signs before receiving Form 2 and prescribed certificates, they can walk away.

Don't let a simple admin error crash your deal. That will be a very difficult conversation for you as a selling agent to have with your vendor - the buyer's continuing right to terminate all the way up until settlement!

Okay, so why does this matter?

Speed with confidence. When a serious buyer emerges, there's no dead time waiting for searches. Contract goes out, signed immediately, progressed to settlement, great. Fewer fall overs. So proper accurate disclosure narrows the window for buyer termination on disclosure grounds.

And a better buying experience. Serious buyers will recognise and reward a clean, transparent deal with a faster "yes".

A couple of very quick FAQ's.

Can we sign a "subject to Form 2 later"? No. The scheme requires disclosure before the buyer signs. Miss it, and they'll have a right to terminate all the way up until settlement.

Does this apply to off market sales? Yes. Off market deals require the same disclosure obligation laws to be met.

Any common exceptions? Good question. Yes. There are a few examples. Corporate buyers, related parties, and sales over 10 million where the buyer waives may have exemptions. Remember, the buyer still has to choose to waive their right to disclose, so best to have the Form 2 disclosure pack ready regardless.

Most ordinary sales will still require full disclosure - we're talking 99.9% of sales. 

Empire Legal, how can you help?

Well, we prepare off market Form 2 bundles, so you're contract ready when a buyer appears. Fixed fee, clear scope, and support for agents and sellers with exactly what needs to be disclosed. We take care of the whole lot. We also set up a simple process for updating and reissuing disclosures if anything changes.

If you're planning an off market approach in the next few weeks, get your disclosure done now, so the deal can move at the speed of your buyer and not get stuck with unnecessary delays.

Thanks guys. Nearly at 2,800 five star Google reviews. Thanks to our lovely clients and referral network for trusting us to look after you guys. And, we'll see you next week with a brand new topic.

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Guys, that's it for this week. Hope you learned a thing or two. Please feel free to get in touch if you've got any questions. Empire Legal - happy to help. Queensland's trusted choice for conveyancing. Over 2,700 Google reviews with a five star average. There's not many firms out there that have that five star average. With that many reviews, guys, and not to mention over 12,000 deals settled. Thanks guys. We'll see you next week.

Finally, if you haven't heard, we've 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!

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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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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.