New Queensland Disclosure Laws Could Add Costs for Sellers but More Clarity for Buyers

From August 1, 2025, new seller disclosure laws will come into effect in Queensland, introducing significant changes to the way properties are sold.

From August 1, 2025, new seller disclosure laws will come into effect in Queensland, introducing significant changes to the way properties are sold. Designed to improve transparency and reduce disputes, the reforms could have major implications for sellers, buyers, and the professionals who support them.

Here’s what you need to know.

What are the new disclosure laws?

The new rules make it mandatory for sellers to provide a “seller disclosure statement – Form 2” before a buyer can sign a contract of sale. This form must include a range of details, including:

  • Tree orders on the property

  • Planned government infrastructure or resumptions

  • Queensland Heritage Act status

  • Any unlicensed building work done in the past six years

If the seller fails to provide this information, the buyer may have the right to terminate the contract right up to settlement, and keep their full deposit. In some cases, they may even be entitled to compensation.

The form must be signed before any contract is executed, and it applies to all contracts from August 1 onwards, even if the property was listed prior.

What’s not included?

While the new rules improve disclosure in many areas, there are still several exclusions. Sellers are not required to disclose:

  • History of flooding or natural disasters

  • Structural soundness or pest issues

  • Building approvals or development restrictions

  • Asbestos presence

  • Current or past property use (e.g. boarding house, massage parlour)

  • Utility connection details

As such, buyers are still encouraged to carry out their own due diligence, including pest and building inspections and checking local planning overlays.

What does it cost sellers?

Legal costs to prepare the disclosure statement can range from $600 to $1,500. For sellers with properties in a body corporate, additional certificates may be needed, raising concerns that costs will be much higher than the $84.10 fee set by the government. Some professionals suggest the real cost could exceed $200 due to manual record-keeping in some complexes.

It’s expected that many vendors will try to recoup these costs through the final sale price, potentially increasing the cost of selling by $1,000 or more.

Why the change?

According to the Real Estate Institute of Queensland (REIQ), the laws bring Queensland into line with other Australian states and aim to streamline property transactions.

REIQ CEO Antonia Mercorella noted that while the law helps reduce the risk of contract disputes, both buyers and sellers must understand their responsibilities. “If a seller enters into a contract without first providing the disclosure statement, the buyer may be able to terminate,” she warned.

What this means for mortgage brokers and borrowers

If you’re a borrower looking to purchase in Queensland, this new framework could work in your favour. With clearer upfront disclosure, there’s less risk of unpleasant surprises after you’ve secured your pre-approval or settled your loan.

It’s also an important reminder to factor in timing—these changes may extend contract preparation periods, which could impact settlement timelines. If you’re planning to buy or sell soon, it’s worth checking how this might affect your loan approvals or refinance plans.

Final thoughts

These laws aim to provide more confidence and consistency in the property market, but they also introduce added complexity, particularly for sellers. Whether you’re buying your first home, selling an investment, or navigating a refinance, having expert support can make a real difference.

Thinking of buying or selling in Queensland? Speak with us today about how these changes could affect your plans and what steps to take to stay on track.

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MICHELLE GALLIMORE trading as Luna Mortgage Broker, Tassie Mortgage Broker & Whitsunday Mortgage Broker (ABN 17911518049) with Credit Representative Number 490498 is an authorised Credit Representatives of Australian Credit Licence Number 384324.

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