← Back Sellers · 5 min read

What Sellers Must Disclose in Queensland: A Complete Guide

Queensland property law requires sellers to disclose material facts, defects, and certain legal matters before settlement. Here is exactly what you are required to tell buyers.

One of the most important questions sellers face is what they are legally required to tell buyers before a sale proceeds. Queensland's disclosure framework is more structured than many sellers realise, and getting it wrong carries real consequences. Non-disclosure can allow a buyer to terminate a contract before settlement, and in some circumstances may expose a seller to legal action after the fact. Understanding what you must disclose, what you should disclose, and what falls outside your obligations is essential preparation for any sale.

This guide covers the mandatory disclosure framework under Queensland law, common areas where sellers inadvertently fall short, and how working with an experienced agent can help you work through the process without creating unnecessary risk.

The Property Law Act 2023 and the Form 2 Mandatory Seller Disclosure Statement

From 1 August 2025, Queensland's seller disclosure regime is governed by the Property Law Act 2023. Sellers of residential and commercial property must give the buyer a Form 2 Mandatory Seller Disclosure Statement, together with prescribed certificates, before the buyer signs the contract. This is a substantial change from the previous regime, which placed Queensland closer to a caveat emptor position than other states. For more detail on what the Form 2 requires and how to prepare it, see our complete seller disclosure checklist. Authoritative guidance is available from the Queensland Government and the REIQ.

The Form 2 covers a defined set of matters including title particulars, body corporate information for community titles lots, encumbrances and statutory notices affecting the land, zoning and overlays, contamination registrations, transport infrastructure proposals, pool safety status, and tree disputes. The seller signs the Form 2 as a declaration. If the disclosure is materially incorrect or incomplete and the buyer was not aware of the true position, the buyer can terminate the contract before settlement.

The Form 2 captures a specific list of statutory matters. It does not cover everything a reasonable buyer would want to know about the physical condition of the property, which remains governed by the separate common-law and statutory rules around material facts and misrepresentation.

Material facts and what that means in practice

Beyond the Form 2, Queensland law (including the Property Occupations Act 2014 as it applies to agents and the common law of misrepresentation as it applies to sellers) requires that material facts about the property are not concealed or misrepresented. A material fact is broadly defined as anything that could reasonably influence a buyer's decision to purchase, or the price they would pay. This is a higher and more open-ended obligation than the Form 2 alone, and it sits alongside the new statutory disclosure regime under the Property Law Act 2023, not in place of it.

Material facts that sellers commonly need to consider include: known structural defects or significant building issues; prior flood or water inundation events affecting the property; asbestos that has been identified (though properties built before 1990 are assumed by buyers to potentially contain it); significant pest damage that the seller is aware of; neighbourhood disputes, including any active disputes with adjoining owners or any history of formal complaints; contamination of the land; and significant noise or amenity issues that are not immediately apparent from an inspection.

The key word is "known." Sellers are generally not required to commission inspections they have not previously undertaken, but they cannot withhold information about matters they are already aware of. If you have had a building inspection done in the past three years that identified significant defects, that knowledge exists and must be dealt with appropriately. If you have received water into the property during the 2022 Brisbane floods, that is a fact that reasonable buyers would consider material.

Flood and water inundation disclosure

Given the flood history of many Brisbane inner-east suburbs, this is an area that warrants specific attention. Brisbane City Council's flood awareness mapping is publicly accessible, and savvy buyers will check it. But a property that sits outside a flood awareness zone can still have experienced internal water inundation depending on stormwater drainage, overland flow, or localised catchment issues. If the property has taken on water during a significant rain event, whether through drainage issues, stormwater backup, or direct flooding, that is information buyers are entitled to know about.

This does not mean you need to volunteer every instance of a damp subfloor after a heavy downpour. It means that if water has entered living areas or caused material damage, that information is relevant to a buyer's decision and should be disclosed. Your agent should help you frame this accurately: what happened, when, and what remediation was done. Disclosing a flood event and demonstrating appropriate remediation is a much stronger position than having a buyer discover it during due diligence or after settlement.

Body corporate matters for units and townhouses

If you are selling a lot in a community titles scheme, disclosure obligations extend to body corporate matters. The Form 2 asks specifically about outstanding levies, ongoing disputes within the scheme, and whether the lot is affected by any current by-law non-compliance notices. Beyond the Form 2, sellers should be aware that buyers in a community titles scheme have a right to obtain a body corporate records search before settlement, and anything significant uncovered in that search may give rise to termination rights if it was not previously disclosed.

Common body corporate disclosure issues include: special levies that have been raised but not yet paid; building defect proceedings or major remediation works underway; significant changes to by-laws that have been passed or are pending; and any current disputes between lot owners or with the body corporate manager. If you are uncertain about the current status of any of these matters, contact your body corporate manager before you list. It is far better to understand the position before a buyer's solicitor raises it during due diligence.

What happens if you do not disclose

The consequences of non-disclosure depend on what was not disclosed, when the buyer discovers it, and whether the failure was deliberate or inadvertent. Before settlement, a buyer who discovers a material fact that was not disclosed may have grounds to terminate the contract. This is a serious commercial risk for sellers who are already partway through a transaction and may have made commitments on a purchase of their own.

After settlement, non-disclosure that amounts to misrepresentation can expose sellers to civil liability. Buyers who discover they were not told about significant defects or material facts may pursue damages through Queensland's civil tribunals or courts. While not every case results in significant liability, the reputational and financial cost of litigation is significant and largely avoidable through proper disclosure at the outset.

The practical takeaway is straightforward: if you are in doubt about whether something should be disclosed, disclose it. Transparency creates a cleaner transaction, reduces the risk of disputes, and leaves buyers with no grounds for complaint after settlement. A buyer who is fully informed and still proceeds is a buyer who has accepted the property on its actual terms.

How your agent can help

Your selling agent is also subject to disclosure obligations under the Property Occupations Act 2014. An agent who becomes aware of a material fact about a property is required to disclose it, and cannot simply follow a seller's instruction not to. This means your agent's obligations and your obligations run in parallel, and a well-informed agent is an asset in working through this correctly.

Before listing, an experienced agent will work through the material facts question with you, help you understand what must be disclosed and how to frame it, identify whether any reports or searches are worth commissioning in advance, and ensure the Form 2 is completed accurately. Getting this right at the start of the process is far less stressful than managing a disclosure dispute mid-campaign.