Best practice: Issuing sales contracts leading up to 1 August 2025

The introduction of the new seller disclosure regime under the Property Law Act 2023 (Qld), commencing from 1 August 2025, represents a significant change in how residential property transactions are conducted in Queensland.

The regime introduces mandatory disclosure obligations for sellers and grants buyer’s new rights to terminate contracts if particular obligations are not met.

Sales agents in Queensland should review the REIQ’s Seller’s Disclosure Toolkit for detailed information about the regime, disclosure requirements and a guide to preparing the Form 2 Seller Disclosure Statement.

Issuing contracts leading up to 1 August 2025

A new version of the REIQ residential and commercial contracts will be released on 1 August 2025.  As the start date for the seller disclosure regime and new contract version approaches, it is critical that real estate agents, sellers, and legal practitioners understand how to manage contracts in the lead-up to 1 August.

It is recommended that contracts are not partially signed before and after 1 August, to avoid compliance issues, a risk of termination and to avoid the contract version being inconsistent with the new laws.

Understanding the Transition

The new seller disclosure regime applies to all contracts entered into on or after 1 August 2025. The term “entered into” refers to the date on which the contract is fully signed by all parties.

If a buyer signs a contract before 1 August, but the seller signs it on or after 1 August, the contract is deemed to have been ‘entered into’ on the later date under the regime.   If the seller did not provide the required disclosure documents before the buyer signed, the buyer may be entitled to terminate the contract.

This presents a challenge: under the new regime, sellers are obligated to provide these disclosure documents before the buyer signs.   However, Form 2 cannot legally be issued before 1 August.   As a result, if a buyer signs before this date and the seller signs on or after, the seller may be unable to meet the disclosure requirements and the contract may then be placed at risk.

Parties will need to consider and plan for how contracts are managed in the days leading up to 1 August.

The REIQ recommends that:

• Contracts are only issued before 1 August, if the parties are going to fully sign the contract prior to 1 August.
• Agents (and legal practitioners) should consider holding off from issuing any contracts in the week leading up to 1 August (Friday).
• From 1 August, contracts can then continue to be issued (with the relevant disclosure documents).
• All contracts to be issued over the weekend (including for auctions) need to be updated onto the new versions on the Friday, 1 August.

Although a Form 2 Seller Disclosure Statement may not be issued before 1 August, it can still be prepared in advance so that it may be issued on and from 1 August to a buyer before they sign a contract.

Risk of Non-Compliance

Failing to comply with the disclosure requirements can have serious consequences. If a seller does not provide the disclosure documents before the buyer signs the contract, the buyer may have a statutory right to terminate the contract at any time before settlement.

See: Buyer Termination Rights: Seller’s Disclosure Regime.

Preparing Disclosure Statements Early

To mitigate these risks, the REIQ recommends that agents begin preparing disclosure statements for all new listings from early to mid-July 2025.

The REIQ is releasing new versions of its PO Form 6/6A Schedules to help agents with obtaining their client’s authority and instructions from 1 July.

This ensures that the disclosure documents are ready in case a contract is signed on or after 1 August. Preparing the disclosure statement early also allows time to obtain necessary searches, which may in some cases, take days or weeks depending on the local council or body corporate.

Having the disclosure statement ready at the time of listing also benefits the sales process. It allows agents to answer buyer questions more confidently and enables buyers to make informed offers. In some cases, it may even help accelerate the contract process by reducing the need for conditional clauses or delays.

Internal Processes and Team Training

Agencies should implement internal checks and training to ensure that all team members understand the new requirements and how to manage contracts during the transition. This may include:

• Designating a contract administrator to review all outgoing contracts in late July
• Creating a checklist for verifying that disclosure documents have been provided
• Training agents on how to explain the new regime to clients
• Updating templates and workflows in Realworks or other platforms

Communicating with Clients

Clear communication with sellers is essential during this period. Agents should explain the new disclosure requirements and the importance of preparing the Form 2 early. Sellers should be advised that if a contract is signed on or after 1 August, the disclosure statement must be provided before the buyer signs. If the seller is unavailable or travelling, arrangements should be made in advance to ensure that the documents can be signed and delivered on time.

DISCLAIMER: This article is provided for information purposes only and does not constitute legal advice and should not be used as such. Formal and independent legal advice should be sought in particular matters. REIQ cannot and does not warrant and nor does it represent in any way that the information contained herein is current and/or will remain current beyond the time and date of release.

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