What Is Seller Disclosure in Property Transactions?
Seller disclosure is the legal obligation of a person selling property to provide a buyer (purchaser) with specific information about the property before the buyer (purchaser) signs a contract. The purpose of seller disclosure is to ensure buyers (purchasers) receive material information about a property upfront, before they are legally committed, so they can make an informed decision about whether to proceed with the purchase.
Both Queensland and New South Wales have seller disclosure requirements, though the frameworks differ significantly between the two states. Understanding what must be disclosed, and when, is essential for both sellers (vendors) and buyers (purchasers) in each state.
What Are the Seller Disclosure Requirements in Queensland?
Queensland introduced a mandatory seller disclosure regime under the Property Law Act 2023 (Qld), which took effect on 1 August 2025. This represents one of the most significant changes to Queensland property law in many years, replacing the previous “buyer beware” approach with a structured, mandatory disclosure framework.
From 1 August 2025, anyone selling residential or commercial property or vacant land in Queensland is required to provide a prospective buyer with a Seller Disclosure Statement, known as Form 2, and prescribed certificates before the buyer signs the contract. The disclosure statement must be accurate at the time it is provided.
What Is the QLD Form 2 Seller Disclosure Statement?
The Form 2 Seller Disclosure Statement is a standardised document approved by the Queensland Government that sellers must complete and provide to buyers before contract signing. It covers:
- Basic property details and legal ownership information
- Title and plan information, including a current title search and registered survey plan confirming legal ownership and property boundaries
- All registered encumbrances, mortgages, easements, covenants and any unregistered interests that could affect the buyer’s use of the land
- Zoning and planning information, how the land can be used or developed under the local planning scheme
- Tenancy agreements, if the property is currently tenanted, full details of the residential tenancy agreement must be provided
- Resumption notices, any future road or infrastructure plans affecting the property
- Pool safety certificate, or a formal notice stating one has not been issued
- Contaminated land, whether the property is listed on the Contaminated Land Register or Environmental Management Register
- Neighbourhood disputes, orders or applications under the Neighbourhood Disputes Act
- Rates and water account information
- Flood risk and environmental hazards
What Prescribed Certificates Must a QLD Seller Provide?
In addition to the Form 2 Seller Disclosure Statement, QLD sellers must provide certain prescribed certificates as part of the disclosure package. These certificates must be current at the time of disclosure and are separate to the standard searches a buyer’s conveyancer will order after contract signing.
Sellers in Queensland are strongly advised to begin ordering required searches and certificates 30 to 45 days before listing, some certificates expire quickly and can delay a sale if not current at the time of disclosure.
What Happens If a QLD Seller Fails to Disclose Correctly?
If a seller in Queensland fails to provide the Seller Disclosure Statement, provides an inaccurate statement, or provides one that is incomplete, the buyer may have the right to terminate the contract. Where a buyer terminates a contract due to a seller’s failure to disclose, the seller must refund any amount paid by the buyer towards the purchase, including any deposit or part payment, within 14 days of termination.
The only exception to a buyer’s right to terminate is where the seller’s failure to disclose is also a failure to comply with another specific Act, in which case the consequence provided for in that other Act will apply instead.
This makes accuracy in the QLD disclosure statement critical. Even small mistakes can have significant legal and financial consequences for the seller. This is why Milana Law prepares and reviews the seller disclosure documentation on behalf of every QLD seller client, ensuring compliance and protecting the sale.
What Are the Seller Disclosure Requirements in NSW?
In New South Wales, seller disclosure operates through a different mechanism from Queensland. Rather than a standalone Seller Disclosure Statement, the vendor’s (seller’s) disclosure obligations in NSW are primarily satisfied through the preparation of the Contract for Sale, which must be prepared by the vendor’s (seller’s) conveyancer or solicitor before the property can be marketed or advertised.
The Conveyancing (Sale of Land) Regulation 2022 (NSW) requires that certain documents and certificates be attached to every Contract for Sale before exchange. These mandatory attachments constitute the primary disclosure mechanism for NSW vendors.
What Must Be Included in a NSW Contract for Sale as Disclosure?
Under NSW law, the following documents must be attached to the Contract for Sale before the property can be marketed:
- Title search: confirming ownership and any registered interests affecting the title
- Section 10.7(2) Planning Certificate: mandatory under the Conveyancing (Sale of Land) Regulation 2022, confirming whether the property is affected by proposed road widening, heritage listings, flood zones or development applications
- Deposited Plan: the registered survey plan showing the lot boundaries and dimensions
- Section 88B Instrument: confirming any easements, restrictions or positive covenants registered on the title
- Drainage diagram: showing the location of sewerage infrastructure
- Land Tax Certificate: this is ordered by the purchaser’s conveyancer after exchange as part of the purchase searches. It does not form part of the Contract for Sale
- ATO Clearance Certificate: this is obtained by the vendor’s conveyancer after exchange and is not a document that forms part of the Contract for Sale. It is provided to the purchaser’s conveyancer prior to settlement to confirm the vendor’s Australian residency status for tax purposes
For strata properties, additional documents must be included, including the strata plan, by-laws and common property title search.
What Is the Key Difference Between QLD and NSW Seller Disclosure?
The fundamental structural difference between QLD and NSW seller disclosure is timing and mechanism:
In Queensland, seller disclosure is a standalone, mandatory process, the seller provides the Form 2 Seller Disclosure Statement and prescribed certificates to the buyer before the contract is signed. The disclosure is a separate step that must occur before the contract.
In New South Wales, seller disclosure is embedded in the Contract for Sale itself, the vendor’s conveyancer prepares a contract that includes all required disclosure documents as mandatory attachments. The contract cannot be exchanged without these documents being in place, and the property cannot be marketed without a contract being prepared.
Both systems achieve the same fundamental goal, ensuring buyers receive material information before they are legally committed, but through very different mechanisms.
What Are the Consequences for Buyers If Disclosure Is Incomplete or Inaccurate?
For buyers (purchasers) in both QLD and NSW, incomplete or inaccurate seller disclosure can have significant consequences:
In QLD, if the seller’s disclosure is inaccurate or incomplete, the buyer may have a right to terminate the contract and receive a full refund of any deposit paid. This right is time-limited and subject to specific conditions, which is why having a conveyancer review the disclosure documents before signing is essential.
In NSW, if mandatory documents are missing from the Contract for Sale, the purchaser may have the right to rescind the contract within a specified period after exchange. A vendor’s failure to attach required documents, such as a Section 10.7(2) certificate, can give the purchaser a right to pull out even after exchange.
In both states, a buyer (purchaser) who identifies a disclosure issue should contact their conveyancer immediately, the right to terminate or rescind is not open-ended and must be exercised within specific timeframes.
What Is the QLD Seller Disclosure Regime for Strata or Body Corporate Properties?
For Queensland sellers of properties within a body corporate scheme, units, townhouses and apartments, additional disclosure requirements apply. The seller must include in the disclosure package:
- Body corporate information, financial statements, insurance details and any special levies or disputes
- Any relevant body corporate by-laws
- Details of any building management statement applicable to the scheme
For NSW strata properties, the Contract for Sale must include the strata plan, by-laws and common property title search as mandatory attachments. A strata inspection report is also highly recommended for buyers, particularly before the cooling off period expires, because if there is a building issue and the report was not obtained before cooling off, insurance may not cover the buyer (purchaser).
Does the QLD Seller Disclosure Regime Apply to Commercial Property?
Yes. The Queensland seller disclosure regime applies to the sale of both residential and commercial property and vacant land in Queensland, not just residential transactions. This is a broader application than some sellers expect and means commercial sellers in QLD must also prepare and provide a Form 2 Seller Disclosure Statement before the buyer signs a contract.
The only major exception in QLD is proposed lots being sold off the plan, these remain governed by the disclosure regimes under the Land Sales Act 1984 (Qld) and Body Corporate and Community Management Act 1997 (Qld).
Does the NSW Seller Disclosure Framework Apply to Commercial Property?
In NSW, when selling a commercial property, the same prescribed documents that are required for a residential Contract for Sale are also required. If those prescribed documents are not included in the contract, the purchaser has the right to terminate the contract. Sellers (vendors) of commercial property in NSW should ensure their conveyancer prepares the contract with all required documents in place before the property is marketed or any contract is signed.
Frequently Asked Questions About Seller Disclosure in QLD and NSW
Q: In QLD, when must the seller provide the Form 2 disclosure statement?
The seller must provide the Form 2 Seller Disclosure Statement and prescribed certificates to the buyer before the buyer signs the contract. It must be accurate at the time it is provided. Providing it after the contract is signed does not satisfy the legal obligation.
Q: In NSW, can a property be advertised before the Contract for Sale is prepared?
No. Under NSW law, a residential property cannot be advertised for sale without a Contract for Sale being prepared and available. The vendor’s conveyancer must prepare the contract, including all mandatory disclosure documents, before marketing begins.
Q: What happens if a QLD seller provides an inaccurate disclosure statement?
If the disclosure statement is inaccurate and the inaccuracy is material, meaning it would have affected the buyer’s decision to purchase, the buyer may have the right to terminate the contract and receive a full deposit refund. This is why accuracy in the QLD Form 2 is critical and why Milana Law prepares the disclosure documentation carefully for every QLD seller client.
Q: Can a buyer waive their right to disclosure in QLD?
There is a limited exception in Queensland where the buyer and seller are related within the meaning of the Property Law Act 2023 (Qld) and the buyer provides a waiver notice. Outside of this specific circumstance, the disclosure requirements cannot be waived.
Q: What is a Section 10.7 certificate in NSW and why does it matter?
A Section 10.7(2) Planning Certificate is issued by the local council and is mandatory in every NSW Contract for Sale. It confirms the zoning of the land and reveals whether the property is affected by proposed road widening, heritage listings, flood zones or development applications. It is one of the most important disclosure documents in a NSW transaction and must be current at the time of contract preparation.
Q: What should a buyer do if they identify a disclosure issue after signing?
Contact their conveyancer immediately. The right to terminate or rescind a contract based on a disclosure failure is time-limited in both QLD and NSW. Acting promptly is essential, waiting reduces your options significantly.
How Milana Law Manages Seller Disclosure for QLD and NSW Clients
At Milana Law, we manage the entire seller disclosure process on behalf of our seller and vendor clients in both Queensland and New South Wales.
For QLD sellers, Milana Law:
✅ Prepares the Form 2 Seller Disclosure Statement accurately and completely
✅ Orders and reviews all required prescribed certificates
✅ Advises on timing, ensuring disclosure is provided before contract signing
✅ Reviews any buyer termination rights arising from disclosure issues
For NSW vendors, Milana Law:
✅ Prepares the Contract for Sale with all mandatory disclosure documents attached
✅ Orders the Section 10.7(2) Planning Certificate, title search, drainage diagram and all other required attachments
✅ Ensures the contract is ready before marketing begins
✅ Advises on any disclosure issues that arise during the transaction
📞 QLD: 07 3522 1422 | 📞 NSW: 02 8360 8999 | 📧 info@milanalaw.com.au | 🌐 milanalaw.com.au