Seller Disclosure
Selling property in Queensland now involves disclosure before the contract is signed
Queensland's seller disclosure regime requires sellers of most freehold property to give prescribed information and documents to a prospective buyer before the buyer signs the contract.
This makes seller disclosure an important part of preparing a property for sale.
It should not be something left until a buyer has been found and is waiting to sign.
At Watt & Severin, we can help you understand your disclosure obligations, obtain the required information and prepare the disclosure documentation so that the legal side of your sale is being addressed from the outset.
What is seller disclosure?
The seller disclosure regime requires a seller to provide a buyer with prescribed information about the property before the buyer enters into the contract.
This is generally provided through a prescribed seller disclosure statement together with the documents required to accompany it.
The disclosure requirements apply to many residential property sales in Queensland, although there are exceptions and different considerations may arise depending on the property and the proposed transaction.
The important point for sellers is that disclosure occurs before the buyer signs the contract.
That makes timing important.
Why should I deal with disclosure early?
It is common for much of the preparation for a property sale to focus initially on presentation, selecting an agent, photography, marketing and finding a buyer.
The legal preparation is just as important.
Waiting until an interested buyer is ready to sign can create unnecessary pressure if disclosure documents still need to be obtained or an issue affecting the property needs to be investigated.
Starting early gives you and your solicitor time to identify what is required, obtain the relevant information and consider any issues before they become urgent.
It can also allow matters discovered during preparation of the disclosure documents to be considered before the property is under contract.
What information needs to be disclosed?
The prescribed disclosure statement contains information about the property and must be accompanied by certain prescribed documents.
What is required will depend upon the property and the applicable legislation.
The disclosure process may involve information concerning matters such as:
the title to the property;
registered interests affecting the land;
planning and other prescribed property information;
notices or orders affecting the property;
body corporate information where applicable; and
other documents or information required by the seller disclosure legislation.
Seller disclosure is not necessarily a complete history of everything affecting a property, and the statutory regime does not replace all of the investigations a prudent buyer may wish to undertake.
For a seller, however, the important issue is making sure the disclosure required by law is properly addressed.
What happens if disclosure is not provided correctly?
The consequences of failing to comply with the seller disclosure requirements can be significant.
In certain circumstances, a buyer may have statutory rights if the required disclosure was not provided before the contract was signed or if information required to be disclosed was inaccurate or incomplete in a material way.
Whether a particular issue gives rise to rights under the legislation will depend upon the circumstances.
This is one reason we recommend treating seller disclosure as part of the preparation for sale rather than as an administrative task to be dealt with at the last moment.
Isn't this something my real estate agent handles?
Your real estate agent has an important role in marketing the property and negotiating the sale.
Seller disclosure, however, creates legal obligations for the seller.
We recommend obtaining legal assistance with the disclosure process so that the documents can be considered alongside the proposed contract and any legal issues affecting the property.
It also means that if something unusual emerges while the disclosure material is being prepared, you have a solicitor available to advise you about what it means and what should happen next.
How we can help
We can assist with the seller disclosure process as part of preparing your property for sale.
This can include:
explaining your disclosure obligations;
identifying the documents and information required;
obtaining relevant searches and property information;
preparing the prescribed disclosure statement;
considering issues identified during the disclosure process;
reviewing or preparing the proposed contract; and
advising you about the transaction before a buyer signs.
Where an issue requires further investigation, dealing with it early may provide more options than discovering it when a buyer is already waiting to enter into the contract.
Preparing to sell?
You do not need to wait until you have found a buyer before speaking with us.
Ideally, contact us when you are preparing the property for market.
We can help you get the disclosure and contractual documentation underway so that when a buyer is ready to proceed, the legal preparation has already begun.