Real estate experts are warning new mandatory seller laws that allow a buyer the right to terminate a contract right up to settlement day will push up the cost of selling a property by $1,000 or more.<\/p>\n
The tough new laws coming into force in Queensland from August 1 will allow buyers to get their entire deposit back, and even claim compensation, if the vendor fails to offer up vital information<\/p>\n
Here’s what every seller must know before they put their house on the market.<\/p>\n
New seller disclosure regime<\/p>\n
The sales bundle of documents includes what is known as a “seller disclosure statement \u2014 Form 2” and various prescribed certificates.<\/p>\n
A vendor can’t sign a contract of sale until they provide this statement.<\/p>\n
<\/p>\n
The new laws will allow buyers to cancel the sale if certain information is not given to them by the seller.\u00a0 (ABC News: Pete Mullins)<\/p>\n
Some of the things the statement will have to include are:<\/p>\n
Whether there are any tree orders that apply to the propertyIf the property is affected by a government transport resumption proposal or infrastructure projectIf the property is affected by the Queensland Heritage ActWhether “unlicensed building work” has taken place in the previous six years.<\/p>\n
Legal costs to prepare this seven-page document vary from about $600 to $1,500, depending on who you ask, and the money will have to be paid by the seller up front.<\/p>\n
However, agents have said the vendor may try to add it into the final sale price.<\/p>\n
What doesn’t it include?<\/p>\n
In a state so prone to severe weather events, flooding or other natural hazard history does not have to be disclosed.<\/p>\n
Nor does structural soundness, pest infestation, limits imposed by planning laws or if there is any asbestos on site.<\/p>\n
What the laws don’t cover<\/p>\n
Flooding or natural hazard historyStructural soundness or pest infestationBuilding or development approvalsAsbestos presenceUtility connections<\/p>\n
The current or historical use of the building (eg if it was once a massage parlour or a boarding house) will also not have to be disclosed on the statement.<\/p>\n
Real Estate Institute of Queensland CEO Antonia Mercorella said this new law would create some consistency and bring Queensland in line with other states.<\/p>\n
However, buyers still need to remain vigilant and think about other types of due diligence, she said.<\/p>\n
“Similarly, the seller needs to understand that a property cannot be sold, or a contract entered into, until the statement is given,” Ms Mercorella said.<\/p>\n
“Because if that were to occur then potentially the buyer could terminate the contract.”<\/p>\n
Antonia Mercorella says both buyers and sellers must be careful under the new laws.\u00a0 (ABC News: Michael Lloyd)<\/p>\n
Do the laws apply if I’ve already listed my property?<\/p>\n
The regime applies to all contracts entered into on or after August 1, 2025, regardless of when the property was listed for sale.<\/p>\n
While it is not mandatory for the buyer to sign the statement, REIQ said it was best practice for them to do so to confirm receipt.<\/p>\n