Can agents prepare a Form 2? Key considerations for offering this service

With the commencement of the new seller disclosure regime under the Property Law Act 2023 (Qld) on 1 August 2025, real estate agents in Queensland are facing new responsibilities and opportunities.

One of the most significant changes is the introduction of the Form 2 Seller Disclosure Statement, which must be provided to a buyer before they sign a contract.

While the law allows agents to prepare this form on behalf of their clients if authorised to do so, providing this additional service to a client comes with important legal, ethical, and practical considerations.

What Is the Form 2?

The Form 2 Seller Disclosure Statement is a statutory document that must be completed and signed by the seller and provided to the buyer before the buyer signs a contract. It includes disclosure information about the property, as required under the Property Law Regulation 2024. The form must be accompanied by prescribed certificates and supporting documents, such as a title search, survey plan, and body corporate certificate (if applicable).

The purpose of the Form 2 is to ensure that buyers receive key information about the property before committing to a purchase. It is a legal requirement under the new seller disclosure regime, and failure to comply can result in the buyer having a right to terminate the contract.

Can Real Estate Agents Prepare the Form 2?

Yes, real estate agents can prepare the Form 2 on behalf of their clients, but only if they are expressly authorised to do so in writing.

This authorisation should be documented in the PO Form 6 Appointment of Property Agent and the accompanying REIQ Residential Sales Schedule.

Once authorised, the Agent can ask their client to complete the REIQ’s Disclosure Instructions and Search Authority annexures, which provide the agent with the necessary information to prepare the Form 2 and order any relevant searches as instructed by the client.

Once instructions are provided and any relevant searches are ordered, the agent can prepare a draft Form 2 and send it to the client for review and approval.  Once approved, the agent can arrange for the seller to sign the Form 2.

It is important to note that while agents can prepare the form, they cannot provide legal advice or interpret legal documents.  Their role is administrative: to insert information provided by the seller and obtained through authorised searches.  If the seller is unsure about what must be disclosed or how to answer a question, they must be referred to a solicitor.

Legal and Ethical Boundaries

Agents must be extremely careful not to cross the line into providing legal advice. Under the Legal Profession Act 2007 (Qld), only qualified legal practitioners are permitted to give legal advice. This includes advising a client on whether a particular matter must be disclosed, interpreting search results, or drafting legal clauses.

If an agent provides legal advice, even unintentionally, they may be in breach of the law and could face disciplinary action, fines, or liability for any resulting loss. To avoid this, agents should:

• ·only insert factual information provided by the client;
• use the REIQ checklists and templates to guide the process; and
• refer the client to a solicitor for any legal questions or uncertainties.

Risks and Limitations

While preparing the Form 2 can be a valuable service, it also carries risks.

Under the Essential Terms and Conditions of the REIQ Schedule to the PO Form 6 Appointment of Property Agent (available from 1 July 2025), the client provides:

1. a warranty to the agent that the information provided to the agent to prepare the Form 2 is true and correct; and
2. an indemnity from the client, against any loss arising from a breach of that warranty.

This means that an agent may not be held responsible, if they are inserting information in the Form 2 as provided by the client, and then that information is found out later to be false or incomplete.

However, if the agent makes any error when preparing the Form 2, and this error later results in a termination of a contract, the agent may be found liable and may be responsible for damages (depending on the individual circumstances of the termination).

To mitigate this risk, agents should:

• use the REIQ Essential Terms and Conditions, which include indemnities protecting the agent;
• ensure that all instructions are in writing;
• avoid interpreting or summarising search results; and
• keep a clear record of all documents and communications.

Agents should also consider whether they have the capacity and expertise to offer this service. Preparing a Form 2 requires attention to detail, familiarity with matters that may affect a property, and the ability to manage multiple documents and deadlines.

When to Decline the Service

Even if the agent provides this service for some clients, there will be situations where it is appropriate for the agent to decline to prepare the Form 2 and refer the client to a solicitor.

These include:

• the property is complex or has complex matters affecting it (e.g. multiple lots, mixed-use zoning, contamination/environmental issues apply, complex unregistered agreements or statutory encumbrances, unlicensed building work);
• The seller is unsure about what must be disclosed;
• The seller refuses to authorise searches or does not provide full instructions; and
• The agent is not confident in managing the process.

In such cases, the agent should explain the risks and recommend that the seller engage a solicitor to prepare the disclosure statement. This protects both the client and the agent.

Read more: New seller disclosure regime in Queensland.

Or browse our suite of property sales articles.