Seller Disclosure Scheme Queensland : Conveyancer Guide
A new Statutory Seller Disclosure scheme to be required for Queensland conveyancing transactions.
Previously Queensland did not have a formal seller disclosure scheme for selling or buying residential land, however, with the passing of The Property Law Act 2023 (the New Act) a new Statutory Seller Disclosure scheme will be introduced. The starting date for the new act and Seller Disclosure has yet to be set by the Queensland Government but it is expected to be in 2024.
Traditionally Queensland law has placed the risk on the Buyer to search for any defects or faults in a property with no requirement of the Seller to disclose relevant information.
Buyers have relied upon added special conditions so that they may satisfy their inquiries about the property before proceeding with the completion of a conveyance and ownership.
CONVEYANCING FAQs SELLERS
Why is a new seller disclosure statement necessary for a Queensland conveyance?
There exists now a variety of complex common law and statutory contractual obligations placed on the Seller. The new act will seek to simplify and streamline the conveyancing process whilst increasing transparency of property information between the Buyer and the Seller.
Specifically The New Act will bring together all of the common law, statutory, and contractual seller disclosure obligations into a single statutory Seller Disclosure Scheme.
Who does the new act apply to in a Queensland conveyance?
The new scheme will place obligations on the Seller to provide basic searches and relevant certificates before a contract is agreed upon.
The statutory Seller Disclosure Scheme as enacted in the New Act will be applicable to sales of all freehold land, including sales by auction, subject to several exemptions.
These conveyancing changes will increase transparency between all parties and allow buyers to be well informed before entering into a house and land contract to purchase a Queensland property. In addition it will balance the costs of information and property searches between the Buyer and Seller.
Exceptions to the proposed law:
If the Buyer is a local or state government agency, whereby instead Sellers of freehold land are required to disclose relevant information to proposed Buyers in a document with any prescribed certificates.
How does this change the conveyancing process for Sellers?
The Seller is now required to deliver a disclosure statement to the Buyer before the Buyer signs a contract to purchase the property.
Specifically the warranties in the Seller Disclosure statement will give the Buyer the option to terminate the contract at any time before settlement if:
The Seller fails to give the required disclosure statement or
The disclosure statement is incomplete or inaccurate in a material matter affecting the property and if the disclosure statement had been accurate the Buyer would not have signed the contract.
In addition if the Buyer terminates they will be entitled to a full refund of any deposit paid.
The draft Bill provides that a seller’s failure to comply with the statutory disclosure requirements may entitle the buyer to terminate the contract at any time prior to settlement or claim damages, depending on the circumstances.
What will the disclosure statement include?
This new disclosure must be signed by the Seller and in the approved form, including all information that is true at the time it is given to the buyer
Draft of the Disclosure Statement
The seller must provide to the Buyer
The disclosure statement
any prescribed certificates (the Disclosure Documents) pertaining to the lot.
