What Is a Seller Disclosure Statement (Form 2) in Queensland Property Sales?
The Seller Disclosure Statement (Form 2) is an official document that outlines important details about the property’s condition, including:
- Flooding or other environmental risks
- Title disputes or easements
- Any known defects or ongoing issues
It serves to inform the buyer about the property’s condition and history, including any aspects that could affect the property’s value or safety.
If you’re planning to sell your property on the Gold Coast or anywhere in Queensland, it’s crucial to be aware of the mandatory Seller Disclosure Statement. Under the Property Law Act 2023, sellers are required to provide a Seller Disclosure Statement to buyers before the contract for the property sale is signed. This legal requirement aims to ensure full transparency, protecting both the buyer and seller from future disputes or legal complications.
When Do You Need to Provide It?
The Seller Disclosure Statement (Form 2) must be delivered to the buyer BEFORE they sign the sale contract. This ensures that the buyer has all the necessary information about the property upfront, allowing them to make an informed decision.
What Happens If You Don’t Provide a Disclosure Statement?
Failure to provide the Seller Disclosure Statement can lead to legal consequences. The buyer may be entitled to terminate the contract if they discover significant issues with the property that were not disclosed prior to signing. Additionally, the seller may be held responsible for any undisclosed defects or problems that arise after the sale is completed.
What Information Must Be Included in the Disclosure Statement?
While the exact details may vary based on the property, the form will generally require the seller to disclose:
- Structural defects or significant damage: This includes issues such as foundation problems, water damage, or electrical faults.
- Pest issues: Any past or present infestations of termites or other pests.
- Legal or compliance issues: If the property is involved in any ongoing disputes or non-compliance with zoning laws, building codes, or environmental regulations.
- Flooding risks: Whether the property is located in a flood-prone area or has a history of flooding.
- Title issues: Any restrictions, easements, or encumbrances on the property title.
Why Is It Important?
The Seller Disclosure Statement ensures transparency in the sales process. By providing the buyer with all relevant information about the property, it:
- Reduces the risk of disputes after the sale
- Helps the buyer make an informed decision
- Protects the seller from potential legal action for non-disclosure
- Aligns with the mandatory legal requirements under Queensland law
It’s in the best interest of the seller to be thorough and honest when completing the disclosure, as failure to do so could lead to complications down the line, including the buyer attempting to cancel the contract or seek compensation.
How Do You Prepare for a Seller Disclosure Statement?
To prepare for the Seller Disclosure Statement (Form 2):
- Conduct inspections: Consider getting a professional building and pest inspection done to identify any potential issues before listing your property for sale.
- Document everything: Gather all relevant records related to repairs, renovations, and previous inspections. This could help provide more accurate details to the buyer.
- Consult a solicitor: They can guide you in properly completing the Seller Disclosure Statement and ensure you meet all legal obligations under the Property Law Act 2023.
The Seller Disclosure Statement (Form 2) is a critical document when selling property in Queensland. As a seller, being transparent about the condition of your property not only ensures you comply with the law but also helps build trust with potential buyers. If you’re unsure about the details you need to disclose or the process of completing the form, consult a real estate professional or solicitor to ensure you handle it correctly.
More Smart Seller Questions Answered
Gold Coast Real Estate Commission Rates: Are You Paying for Value or Just a Fee?
When it comes to real estate commission on the Gold Coast, it’s not just about how much you’re paying; it’s about what you’re actually getting in return. A great agent doesn’t just list your property and hope for the best. They create tailored marketing campaigns, negotiate with confidence, manage complex legal steps, and keep your sale moving forward smoothly.
Sure, a lower commission might look attractive upfront, but it could ultimately cost you more in the long run if it means cutting corners on exposure, strategy, or service. The real question isn’t “What’s the cheapest rate?” It’s “Who will deliver the strongest outcome?” If you’re ready to sell smart and want to know how to get maximum value from your agent, let’s chat. Your best sale price starts with the right support.
Example of a Form 2, Seller Disclosure Statement for Selling Real Estate in Queensland
seller-disclosure-statement-form-2
THIS IS HOW YOUR JOURNEY TO A SUCCESSFUL GOLD COAST PROPERTY SALE STARTS
My simplified guide below will take you through a 20-step process for selling your property anywhere on the Gold Coast;
I proudly sell homes across the entire coast.
1. PREPARING YOUR GOLD COAST PROPERTY FOR SALE + SOME OF THE LEGAL REQUIREMENTS
- Tidying gardens and decluttering everything inside and out.
- All homes for sale, are legally required to have hardwired photoelectric, interconnected smoke alarms.
Non-removable 10-year battery smoke alarms can be installed as an alternative.
- By law, you are required to complete a pre-contractual seller’s disclosure statement: generally related to limitations, restraints, or defects in the property title, such as easements, covenants, leasing, zoning, etc.
- A pool safety certificate is also required if you have a swimming pool or if the property has a shared swimming pool (Body Corporate).
2. COMPARATIVE MARKET ANALYSIS REPORT FOR YOUR GOLD COAST PROPERTY
After showing me around your property, I will provide you with a Comparative Market Analysis (CMA) report. This is a detailed, legally required analysis of your home’s market value.
The CMA is based on recently sold and for-sale properties similar to yours in the immediate area. I will need to view your home to prepare this report.
3. SETTING A MARKETING BUDGET FOR YOUR GOLD COAST HOME
The third step in selling your home is to create a marketing budget.
By law, this must be based on actual costs.
There are various marketing options to consider, such as:
– Internal, External and Drone Photography.
– Property and House Plans show potential buyers the exact layout of your home and property.
– Internet Advertising on platforms such as RealEstate.com.au, Domain.com.au, Facebook.com, Instagram.com, etc.
– For Sale Sign on the street is still essential to attracting potential buyers. Even though many buyers start their search online, they often drive around neighbourhoods to see what’s available.
A simple fact: Not having a For Sale sign can significantly reduce the number of people who see your property and may be interested in buying it.
4. PREPARING AND APPROVING THE FORM 6 AGREEMENT WHEN SELLING A GOLD COAST PROPERTY
A Form 6 Agreement is a document provided by the Queensland State Government. It outlines all relevant details of the property sale, including the marketing budget.
Our administration team will prepare this form for you and send it for your review and approval.
5. PAYING THE MARKETING BUDGET FOR YOUR GOLD COAST PROPERTY
Once you have approved the Form 6 Agreement, the next step is to pay for the marketing budget that you have chosen.
6. STARTING THE ADVERTISING PROCESS
Once your payment is received, the advertising campaign will commence.
Advertising strategies will align with the choices you made within your marketing budget.
7. MONITORING MARKET RESPONSE
If your property hasn’t received offers within 30 days, don’t assume there’s no interest.
It often means the price isn’t aligned with what buyers are willing to pay at this time.
This is your signal to review and adjust your pricing strategy so your home remains competitive and receives the attention it deserves.
8. ARRANGING BUYER VIEWINGS
When buyers express interest in your property, viewings will be arranged to allow them to see your home in person; you need to be away from the property during these viewings.
This helps potential buyers feel relaxed and visualise themselves as the new owners, thereby forming a deeper connection with your property.
9. CONSIDERING A BUYER’S OFFER
When you receive an offer on your home, it means a buyer is serious and ready to move forward at a certain price.
This is a key moment in your selling journey. Take the time to go over the offer carefully.
Look beyond the price; check the terms, conditions, and settlement timeframes. Make sure it works for you before accepting, countering, or declining.
10. ACCEPT, COUNTER, REJECT
When an offer is presented, you will need to respond by accepting, countering, or rejecting it.
Accepting locks in the agreed-upon price and terms.
Countering proposes changes and initiates further negotiations. If countering, present revised terms clearly; open, respectful communication is key for a smooth sale.
Rejecting means the offer is unacceptable; in this case, respond promptly and professionally, explaining your reasoning for the decision.
11. YOUR LEGALITIES
When you finally accept an offer, you will engage your conveyancer or solicitor to facilitate the legal requirements to complete the sale.
If you are part of a Body Corporate, you will need to provide a Disclosure Statement from them.
Your solicitor will use PEXA to settle your property. Part of the process requires Verification of Identity. Also, anyone selling a property must complete an ATO Clearance Certificate.
12. BUYER’S DEPOSIT
The buyer’s deposit is a crucial step in the property purchase process; it will be held in the agency’s Trust account.
This is a tangible expression of the buyer’s commitment to purchase your property.
13. BUILDING AND PEST INSPECTIONS
Typically, a buyer will arrange for a building and pest inspection report to be completed, usually within 14 days of the contract date.
Additionally, they may have the contract subject to finance, which is generally applicable for 21 days from the contract date.
14. COMPLETING YOUR GOLD COAST PROPERTY SALE
Based on the outcome of the building and pest inspection report, as well as any finance being sought, the buyer will proceed with their offer or withdraw it.
At this point, the sale either falls through or becomes unconditional.
15. LOOKING FOR YOUR NEW PROPERTY
If the sale becomes unconditional, it is time to start looking for a new property. Remember, there is no need to rush.
It is essential that you take your time, as this needs to be a very considered purchase.
Your new home is of substantial value and can be costly if you change your mind. Something you may want to investigate is Short-Term Bridging Loans.
16. ALTERNATIVES YOU SHOULD CONSIDER
An alternative to seriously consider when deciding where to live between selling and buying is renting while you look for a new property.
Renting for a short period gives you breathing room; it allows you time to clear your head, make a confident, considered decision, and ultimately buy where you truly want to live, with no pressure or panic.
17. TIME FOR YOU TO MOVE
Leaving your home opens doors to a new chapter full of new beginnings. Embrace the excitement of a fresh start and cherish the memories you’ve made.
Every box you pack brings you one step closer to a new adventure full of possibilities that lie ahead.
18. YOUR SALE CONCLUDES
The culmination of the property sale is settlement; it marks the transfer of the property to the new buyer.
As the final chapter concludes, this marks a sense of achievement: your property has now SOLD.
19. YOUR FUTURE OPTIONS
If you have chosen to rent, you will continue to look for and eventually purchase a property, apartment, or perhaps even buy land and build; now there’s something to consider.
20. TIME TO UNWIND AND MAKE YOUR NEW HOME YOUR OWN
As you unpack and furnish your new home, embrace the gradual process of creating your haven.
Enjoy the transformation, one room at a time.
Relax in the tranquillity of your surroundings and immerse yourself in the gentle sounds of your new neighbourhood.
Explore the nearby parks and cafes; enjoy the unique charm of your new community.
Remember, settling in is a journey in itself; it’s not a race. Embrace the process of creating a home that reflects your unique style and personality.
Whether you’re downsizing, relocating or just ready to move on, I’ll guide you through every step of selling your Gold Coast home with confidence and ease.
Navigating the intricacies of selling your property can be complex, but it doesn’t have to be.
My 20-step guide provides a simplified general overview; as you would naturally expect, your steps may vary.
Author – Craig Douglas
Are you ready for a conversation about selling your Gold Coast home?
Let’s get you Selling
LET’S GET YOU SOLD
Craig Douglas 0418 189 963
Professional | Knowledgeable | Experienced
You can find me working at a Boutique Real Estate Agency
These are just some of the suburbs that I proudly sell homes in:
Palm Beach
Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing property sales in Queensland are complex and subject to frequent changes. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document, you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.
This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight“.
I negotiate and sell on behalf of property owners who want to get the best possible price, with the least amount of hassle. Let’s talk about the process of selling your property over a coffee to get you started – 0418 189 963
