Seller Disclosure Statements in QLD: What They Do (and Don’t) Tell You

With the new Property Law Act in Queensland now in effect, many people assume that a seller’s disclosure statement will tell them everything there is to know about a property.  That isn’t the case.  Both buyers and sellers need to be clear about what’s included — and what isn’t.

What the seller disclosure statement covers

Key information that should be included in the seller disclosure statement includes:

• Title details for the property (a copy of the title search and plan search also need to be provided);

• Details about the cost of rates for the property;

• Details of any leases or encumbrances;

• Whether work has been carried out under an owner-builder permit in the last six years;

• Whether the property is heritage-listed;

• Body corporate and pool safety information (if applicable); and.

• Whether the seller has received certain notices or orders, such as those relating to:

  • Transport proposals or resumptions;

  • Environmental management / land contamination;

  • Tree disputes;

  • Building or planning laws.

What the seller disclosure statement does not cover

The disclosure statement is not a substitute for a buyer doing their own due diligence. For example, it does not tell you:

• Whether the property has ever been affected by flooding;

• Information about whether or not any building contains asbestos;

• Whether all improvements or structures have the necessary council approvals; and

• The condition of the property (which is why independent building and pest inspections are recommended).

The document includes the following warning to buyers:

“WARNING TO BUYER – The seller does not warrant the structural soundness of the buildings or improvements on the property, or that the buildings on the property have the required approval, or that there is no pest infestation affecting the property. You should engage a licensed building inspector or an appropriately qualified engineer, builder or pest inspector to inspect the property and provide a report and also undertake searches to determine whether buildings and improvements on the property have the required approvals.”

The bottom line

The seller disclosure statement is a useful tool, but it’s not the full picture. Buyers still need to undertake their own checks, and sellers need to understand their obligations before completing the form. Getting advice before you sign a contract — whether you’re buying or selling — can help avoid unpleasant surprises later.

*This is general information only and is not legal advice. Laws and requirements can change, and every property matter is different. You should obtain professional advice tailored to your circumstances before making decisions about buying or selling property.

If you’re buying or selling property in Queensland and want peace of mind, get in touch with us. We’ll make sure you understand your rights and obligations before you sign.