Who can prepare a Form 2 Seller Disclosure Statement in Queensland?

The introduction of the statutory Seller Disclosure Scheme under the Property Law Act 2023 (Qld) has fundamentally changed how property is sold in Queensland. Sellers must now provide a comprehensive Form 2 Disclosure Statement to a buyer before the contract of sale is signed.¹

Who is Authorized to Prepare the Form 2?

Legally, three parties are permitted to prepare and sign the Form 2 Disclosure Statement:²

1. The Seller (Self-Preparation): You are legally competent to prepare your own disclosure statement.
2. The Real Estate Agent: Your appointed agent can prepare document drafts for your approval.
3. A Law Firm: Your solicitor can prepare the statement as part of the conveyancing process.

While “self-preparation” is legal, it is highly risky. The legislation requires the attachment of specific “prescribed certificates” and accurate data about the property. A mistake doesn’t just mean paperwork needs fixing—it can give the buyer the right to terminate the contract without penalty.³

What Must Be Included in the Form 2?

The Form 2 is not a simple checklist. It requires specific, up-to-date information regarding:

• Title Details: Lot and plan numbers, title references.
• Encumbrances: Easements, covenants, and caveats registered on the title.
• Zoning and Planning: Current zoning and any overlay constraints.
• Tree/Neighbour Disputes: Any applications or orders regarding trees or fences.
• Pool Safety: Current safety certificates or notices of no certificate.
• Body Corporate (if applicable): Body corporate information certificates, community management statements, and details of any special levies.⁴

Mandatory Attachments (Prescribed Certificates)

You must attach current copies of specific documents, including:

• A current title search (no older than roughly 5 business days recommended).
• A registered survey plan.
• Body corporate information certificate (if strata).
• Pool safety certificate (if applicable).⁵

Risks of Defective Disclosure

Before the Property Law Act 2023, Queensland operated largely on “buyer beware” (caveat emptor). That has shifted.

If a Seller Disclosure Statement is not given, or if it is “substantially defective” (meaning it contains material errors or omits required information):

1. Termination Right: The buyer can terminate the contract at any time before settlement.⁶
2. Refund: The buyer is entitled to a full refund of their deposit.
3. Costs: The seller may be liable for buyer’s wasted legal and inspection costs in some circumstances.

Example Scenario: A seller prepares their own Form 2 but forgets to attach the registered plan showing an easement for the sewerage line. The buyer discovers this three weeks into the contract. Because the disclosure was defective regarding a material issue (the easement), the buyer may be entitled to terminate the contract immediately.

Why Use a Solicitor?

Given the stakes, most sellers now engage their solicitor to prepare the disclosure statement before listing the property.

Benefits of Legal Preparation:

• Insurance: Lawyers carry professional indemnity insurance. If we make a mistake on the form, you may be covered. If you make a mistake, you are personally liable.
• Access to Searches: We have direct access to title registries to pull “prescribed certificates” instantly.
• Complex Titles: We can interpret complex title notations (like ancient easements or covenants) that might be missed by a layperson.

When is Disclosure NOT Required?

There are limited exemptions where a Form 2 is not required, including:⁷

• Sales between related parties (family members).
• Sale of more than 5 lots in a single contract.
• Sales where the buyer is a publicly listed company or a subsidiary.
• Government acquisitions.

Even if you think an exemption applies, you should confirm this with a lawyer before signing a contract.

Related Property Topics

• What is the cooling-off period in QLD?
• Do I need a lawyer for conveyancing?
• What are the risks of buying off-the-plan?
• Can I terminate a contract after signing?
• Property Law Practice Area

Get Your Disclosure Statement Prepared

Don’t risk a crashed contract. The team at Bell & Senior can prepare your Form 2 Disclosure Statement quickly and accurately for a fixed fee.

Selling property? Contact our Southport office to get your contract and disclosure documents ready before you list. Call (07) 5532 8777.