Disruption warning for first weekend of Seller Disclosure
REIQ has warned real estate agents of the possibility of delays and disruption to auctions of properties in strata buildings.
AUCTIONS and property sales in Queensland face disruption when the state’s Seller Disclosure regime kicks in on 1 August.
Under the new rules, which bring Queensland into line with the rest of the country, a property vendor must provide a buyer with a “seller disclosure statement” and prescribed certificates like a title copy of the plan of survey before signing a sale contract.
Failure to comply may allow a buyer to terminate the contract prior to settlement.
The Real Estate Institute of Queensland (REIQ) has warned agents that some forms for sales in body corporate buildings may be delayed.
Crucial documentation may not be ready for strata properties, which means there is a “significant risk” that buyers could terminate contracts before settlement.
REIQ chief executive Antonia Mercorella confirmed there could be “disruptions” and that they had issued a warning to agents.
“The REIQ has advised agents that if they are taking a property in a community titles scheme or scheme under the Building Units and Group Titles Act to auction in the days after 1 August 2025, they need to be aware that it may not be possible to have a Form 2 Seller Disclosure Statement ready in time for the auction,” said Ms Mercorella.
“After 1 August 2025, there is a significant risk in selling a property if a Seller’s Disclosure Statement has not been provided to the purchaser before entering into a contract, because the contract can be terminated by the successful purchaser at any time up until settlement.
“It is therefore advisable that if a seller or their agent cannot complete and provide a Seller’s Disclosure Statement to the purchaser before they sign the contract, that they should delay the auction, or avoid entering into the contract.”
Lawyer George Sourris had earlier highlighted the issue to Australian Conveyancer, suggesting many strata auctions were at risk.
“There will be a one-week blackout minimum from the 1st of August if you’re selling a body corporate property,” he said.
“For anyone who has a body corporate sale that isn’t under contract by the 31st of July, it’s going to be next to impossible to sell that property in that first week of August.”
The issue stems from changes to the way sellers must disclose body corporate information to buyers.
New forms replace the existing Section 206 form – which outlines essential information about the property and the body corporate – from August 1.
Sourris, who has a dozen body corporates on his Empire Legal business’ books explained that “not one of them is doing anything” until the 1st of August.
Even if ordered today, new disclosure certificates won’t be delivered until several days into August, he said.
“It’s going to be a problem. If that body corporate is an auction, you would be a fool to even consider trying to auction a body corporate property on the 2nd.
“You’re not going to have the certificate. It’ll have to get pushed back.
“I think even the following Saturday for a body corporate auction is pushing it.”
