Sale of Property in Queensland

Seller Disclosure Statements - A Buyer’s Rights to Terminate a Contract where a Buyer has not signed the Seller Disclosure Statement 

In Queensland, Sellers of property, subject to some exception, must provide a Form 2 Seller Disclosure Statement to an intending Buyer.  The Form 2 is a statutory form and includes provision for both the Seller and Buyer to sign and date the Form. What happens if the Seller provides the signed Form 2 Seller Disclosure Statement to a Buyer and the Buyer does not sign it and signs the Contract of Sale only? 

Having regard to the provisions of the Property Law Act 2023 (Qld), a Buyer’s right to terminate the contract arises if: 

• the Seller fails to provide the Form 2 Seller Disclosure Statement before the Buyer signs the contract, or 
• if the statement is inaccurate or incomplete in relation to a material matter and the Buyer was not aware of the correct state of affairs and would not have signed the Contract had they known. 

Provided the Form 2 Seller Disclosure Statement and Contract of Sale were both given to a Buyer before the Buyer signed the Contract of Sale, and the Buyer has signed the Contract of Sale, the Buyer does not have a statutory right to terminate the contract under section 104 of the Property Law Act 2023 (Qld) on the basis that they did not sign the Form 2 Seller Disclosure Statement. 

It is desirable that the Form 2 Seller Disclosure Statement is signed by the Buyer for the purpose of evidencing compliance by the Seller with the requirements of the Property Law Act 2023 (Qld), but not technically required where emails etc can establish that the Form 2 and draft Contract were given the Buyer before the Buyer signed.