Prepare early for August auctions

From 1 August 2025, Queensland’s real estate landscape will change significantly with the introduction of the new seller disclosure regime under the Property Law Act 2023. 

While auctioneers will not be involved with the preparation of the Form 2 Seller Disclosure Statement, they play a critical role in ensuring that their client (the seller), has complied with their disclosure obligations when the property is sold by way of auction.

This article outlines the key responsibilities auctioneers must understand and provides a practical checklist to ensure auction compliance, especially for auctions scheduled on Saturday, 2 August 2025, the first weekend under the new regime.

What Is the Seller Disclosure Regime?

Under the new laws, the seller must provide to the buyer, before the buyer signs the contract:
• A Form 2 Seller Disclosure Statement, and
• All prescribed certificates and documents relevant to the property.
If the buyer does not receive the disclosure documents in a compliant manner, they may have the right to terminate the contract at any time before settlement.  This means that even if the property is sold under auction conditions (ie. an unconditional contract), if particular disclosure obligations are not met then the buyer may still have a right to terminate the contract. 

Auctioneers: Your Role in the Disclosure Process

Regardless of who the client engages to prepare the Form 2 Seller Disclosure Statement, a completed and signed copy must be available prior to the auction. Auctioneers should co-ordinate with the selling agent, as to when the Form 2 will be available. There may be information included that the auctioneer needs to address in their initial statements. 

Auctioneers need to be aware of the strict rules around how the Form 2 can actually be given to a buyer under the Property Law Act 2023. The law distinguishes between two scenarios:

1. Bidder Registered Before the Auction Starts
The disclosure documents must be given to the bidder before the auction begins. Acceptable methods include:
• Providing the buyer with a hard copy
• Email (with the buyer’s consent)
• QR code or link to the documents

2. Bidder Registers During the Auction
If a bidder registers partway through the auction and becomes the successful buyer, the disclosure documents must be provided before the fall of the hammer. This can be done by:
• Displaying a hard copy of the disclosure documents at the auction venue, or
• Displaying a document with a QR code or link to the disclosure documents.
• For online auctions, the documents must be made available in the same electronic medium used to conduct the auction.

As the selling agent and auctioneer won’t know who the buyer will be until the auction concludes, all registered bidders should be given a Form 2 in a permitted way as set out above.   It is not sufficient to simply give the successful bidder a copy of the Form 2 when they are proceeding to sign the contract after the auction has ended.

Best Practice for Being Auction Ready

To ensure compliance and avoid last-minute issues, the REIQ recommends the following best practices:

Before Auction Day
• Confirm with the sales agent that the Form 2 and all attachments are available. 
• Ensure the documents will be available in multiple formats:
o At least one hard copy to be available at the auction venue
o A QR code or link displayed prominently (for example, in brochures)
o Email copies sent to all pre-registered bidders
• Include a disclosure compliance check in your pre-auction briefing with the sales agent.  
• Prepare your auction script to include a reminder about the disclosure documents.

On Auction Day 
• Display at least one hard copy of the disclosure documents from the start of the auction until the fall of the hammer.
• Display a QR code or link to an electronic copy of the disclosure documents. Test the QR code or link to ensure it works and is accessible. REIQ recommends having both a physical copy and QR code at the auction on the day, to ensure that any latecomers have options for how they can view the documents. 
• If a bidder registers in the minutes before the auction starts, provide them with the disclosure documents immediately (email, hard copy, QR code in brochure)
• Ensure a record is kept of how and when each registered bidder received the documents.

Lots in Community Titles Schemes – Body Corporate Certificates 

If an auction is occurring in the days after 1 August 2025, and the property is a lot in a community titles scheme or scheme under the Building Units and Group Titles Act, agents need to be aware that it may not be possible to have a Form 2 Seller Disclosure Statement ready in time for the auction. 

A body corporate certificate (which replaces the section 206 disclosure statement) must be given as a prescribed certificate to the Form 2. The body corporate has five business days to provide this to the seller or their agent, after a request is made. The seller may not be able to make a request for this certificate prior to 1 August 2025. 

If an auction for a lot in a body corporate scheme is scheduled for the days after 1 August 2025, the parties should consider bringing the auction forward or delaying the auction to ensure that the relevant documents can be given to a buyer as required. See more about the new body corporate certificates here. 

What If Someone Is Bidding on Behalf of Another Person? 

If someone is bidding on behalf of another person, the person who will be the buyer, still needs to be given the disclosure documents directly (see section 97 of the Property Law Act 2023).  

A buyer’s agent can accept a Form 2 on behalf of a buyer, provided they are authorised to do so in writing.  The REIQ is updating our Letter of Authority to ensure that selling agents and auctioneers can verify the authority of a buyer’s agents to lawfully accept the Form 2 on behalf of the buyer.

What If Something Goes Wrong?

If a buyer claims they did not receive the disclosure documents in a compliant way, they may have the right to terminate the contract. To protect yourself and your client:

• Document all interactions and disclosures.
• Work closely with the sales agent to ensure all steps are followed.  Each agent should not assume that the other is covering off on particular requirements.

The timing and method of disclosure are critical, especially for late-registering bidders.  Best practice includes having multiple formats available and documenting all disclosures. Non-compliance can lead to contract termination and reputational risk.

Read more about property sales.