The Property Law Act QLD: How New Property Laws Will Change the Market

By Rich Harvey, CEO & Founder, propertybuyer.com.au

Next Level Wealth 

If there’s one thing that players find challenging, it’s a change to the rules of engagement mid-game. It feels unfair and unsettling. You go into a situation with a clear understanding of what’s to happen, but then the powers that be upend your expectations by altering the guardrails.

This is what many stakeholders in Queensland are saying about recent legislative changes under the Property Law Act QLD related to seller disclosure laws. This goal-post shift has had some running scared, and there have already been implications from this recently enacted legislation. 

This is what many stakeholders in Queensland are saying about recent legislative changes related to seller disclosure laws under the Property Law Act QLD related to seller disclosure laws. This goal-post shift has had some running scared, and there have already been implications form this recently enacted legislation.

So, let’s look beyond and consider what’s realistically involved with the changes and how they may impact this dynamic property market.

The new rules

From 1 August 2025, QLD property vendors are required to provide a signed disclosure statement, and prescribed certificates, to a buyer before they sign a contract of sale. This brings the state in line with other jurisdictions such as New South Wales and Victoria.

The disclosure statement, or Form 2 as it's known, encompasses information related to title details, encumbrances, residential tenancy arrangements, land use, planning and environment, buildings and structures, as well as rates and services. For attached housing sales there are also community titles schemes and Building Units and Group Titles Act matters to address.

This new disclosure regime has been designed to help protect buyers but has been described as cumbersome and onerous by vendors and their agents and it's already showing signs of having impacted the market.

The Immediate Fallout

Prior to 1 August 2025, we saw sellers make moves to stay ahead of the changes. There were stories about auction events being held early, and offers being accepted all to ensure contracts were signed before the end of July.

Since the new Act has been enacted there has been a slowdown in transactions as sellers, and their agents come to terms with the stipulations under the new act. 

It’s also created a bottleneck with authorities that supply the documentation. Some agents have reported delays of up to 10 days in getting the full suite of documentation required from relevant agencies and departments. Prior to the changes, this same documentation would take 48-hour turnaround time.

What It Means for Buyers and Sellers

Some vendors are on edge and for good reason.

This increased compliance has the potential to derail a sale right up until settlement day.

If the vendor fails to provide a completed disclosure or certificate prior to sale, the buyer can terminate at any time before settlement without penalty. In addition, if the seller makes an error on their disclosure, it opens the door for buyers to exercise the same right of termination.

This is the ultimate "get out of jail" card for buyers, and some will play it to their advantage. Some buyers who don’t receive the disclosure in time, or discover an error, may well wait until the day of settlement and threaten not to complete unless the seller makes immediate concessions on price or conditions.

That said, when used in good faith, the disclosure still provides an additional safety net for QLD buyers. They get comprehensive property information upfront, and this transparency helps them to make informed purchasing decisions without flying blind.

Also, due diligence costs should reduce for buyers. With sellers providing key documents such as title searches and council notices, you won’t need to pay for as many additional searches and investigations.

There’s also less risk of nasty surprises after settlement. The provision of detailed disclosures minimises the likelihood of disputes arising after the sale, which gives buyers greater confidence.

But it’s not all smooth sailing. The disclosure doesn’t cover everything. Flood risk assessments, for example, aren’t included. So, buyers can’t be entirely complacent in their due diligence.

What Sellers Face

For sellers, the picture is more complicated. On the upside, providing comprehensive disclosures can reduce your legal risks related to misrepresentation or omission claims down the track.

With all necessary documents prepared in advance, the selling process might become more efficient, potentially leading to quicker settlements. Properties with complete and transparent disclosures may also be more attractive to buyers, potentially leading to faster sales.

But there are real downsides too. You'll face increased preparation costs in obtaining and preparing the required documents. More concerning is the potential for deal termination. As mentioned, any failure to provide accurate disclosures or inaccuracies may grant buyers the right to walk away from the contract.

Non-compliance with disclosure requirements can lead to legal actions, financial penalties, and damage to your reputation.

How the market will respond

So, what’s the likely impact of these changes on the way you do property business in Queensland?

Sellers will need to get their disclosure statements lined up in advance of their property going to market. They need to ensure all the t’s are crossed and I’s dotted before they offer their home for sale, with support from agents and solicitors to ensure everything is in order.

We’re likely to see increased buyer confidence in the state as the mandatory disclosure regime creates a more informed buyer pool, potentially reducing instances of post-sale disputes.

The bottom line is this – Queensland’s new seller disclosure regime will take time to bed down. Smart sellers will get ahead of the curve by working with experienced agents and solicitors to ensure their disclosures are comprehensive and accurate.

Smart buyers will understand this is an additional protection, but not a replacement for proper due diligence. The most savvy will also look to work with their own independent representative in the transaction. An experienced local buyers’ agency will be their guide and champion during this shift. A specialist buyers’ agent will ensure you are able to fully utilise the advantages delivered by the new disclosure rules while covering off on all additional due diligence. They’re your guide and safety net even when the goal posts shift.

Disclaimer – We know most of you get this, but just to be clear, the information above is general and doesn't consider your unique situation. Please don't rely on it as a substitute for professional advice. We strongly encourage you to seek appropriate guidance for your specific needs.

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