Seller Disclosure Statements – Do It Yourself versus Engaging a Lawyer or Conveyancer
One year ago, the Queensland Government introduced the legislation which requires sellers to provide prospective buyers with a Seller Disclosure Statement prior to signing a Contract.
Selling a property is one of the most significant financial transactions many people will undertake and since the introduction of Queensland’s Seller Disclosure regime under the Property Law Act 2023 (Qld), selling a property now involves more than simply signing a contract. Sellers are required to provide a Seller Disclosure Statement and prescribed supporting documents before a buyer signs the Contract and while it may be tempting to view the Seller Disclosure Statement as just ‘another piece of paperwork’, it is an important legal document that can have significant implications if it is incomplete or inaccurate.
So, it is worth engaging a professional to prepare the SDS for you?
A common misconception is that preparing a Seller Disclosure Statement simply involves completing a standard form. In reality, the Disclosure Statement forms part of a broader disclosure that requires information to be obtained from various sources. Depending on the property, this may include title searches, registered plan information, notices affecting the property, body corporate records and other prescribed certificates or documents.
The required documents can vary depending on the type of property being sold. A suburban family home, rural property, vacant block of land or strata title property each have different disclosure requirements.
Preparing a compliant Disclosure Statement therefore involves more than simply filling in forms—it requires an understanding of the legislation and what needs to be disclosed.
While some properties have relatively straightforward disclosure requirements, others may involve easements, covenants, leases, unregistered interests, council notices, environmental matters or body corporate issues that need to be carefully considered.
Understanding which matters require disclosure—and ensuring the correct supporting documents are provided—can be more complex than many sellers anticipate.
What happens if I complete the Seller Disclosure incorrectly?
The Seller Disclosure regime was introduced to improve transparency and provide buyers with important information before they enter into a Contract. However, it also places legal obligations on sellers.
In certain circumstances, where the disclosure requirements have not been met, a buyer may have statutory rights under the Property Law Act 2023 (Qld) to terminate the contract and/or seek financial compensation. This has the potential to create uncertainty, delays and, in some cases, jeopardise the sale.
Although Queensland’s Seller Disclosure regime is still relatively new and there is currently limited judicial guidance on how the Courts will interpret some aspects of the legislation, that uncertainty reinforces the importance of ensuring disclosure documents are prepared carefully from the outset.
Engaging a Conveyancer early in the sale process allows sufficient time to identify the documents required for your property and address any issues before a Contract is presented to a prospective buyer.
This can help avoid unnecessary delays during negotiations and provide greater confidence that your disclosure obligations have been met.
Do I really need a Conveyancer or Lawyer to assist me?
Questions often arise about whether particular matters need to be disclosed, whether changes to the property affect the disclosure documents, or what steps should be taken if new information becomes available before settlement.
While it may be possible to prepare a Seller Disclosure Statement without legal assistance, doing so means taking responsibility for ensuring the disclosure complies with Queensland’s legislative requirements. Further, if a seller incorrectly completes the disclosure, resulting in a subsequent termination by the buyer, the seller may still be liable to pay the agent their sales commission.
For many sellers, the value of engaging a Conveyancer lies not simply in preparing the paperwork, but in reducing risk, identifying potential issues early and providing confidence that the sale can proceed as smoothly and as quickly as possible.
But won’t it be expensive to engage a Conveyancer or Lawyer?
Realistically, it could end up a lot more expensive for you if you don’t! While some Firms are charging a significant amount to assist with the preparation of Seller Disclosure Statements, at Enterprise Legal we charge a fixed fee of $220 including GST, plus searches, the exact cost of which depends on the property and what documents you can provide. This is a very small price to pay for peace of mind!
If you are thinking about selling your property, our experienced property team can assist with preparing your Seller Disclosure Statement and supporting documents, ensuring you have the information you need to move forward with confidence. To understand more about our service click here or if you are selling a property in Queensland, simply tell your agent to send us the details.
