BUYING AND SELLING CHECKLIST FOR STRATA PROPERTIES IN QLD

Buying and selling checklist updated for New Seller Disclosure Requirements Effective 1 August 2025.

Buying or selling a freehold residential or commercial strata property in Queensland involves more than a standard property transaction.  Disclosure obligations under the Body Corporate and Community Management Act 1997 (Qld), the Body Corporate and Community Management and Other Legislation Amendment Act 2023 (Qld), and the Property Law Act 2023 (Qld), introduces mandatory seller disclosure obligations the new regime which commences on 1 August 2025.  

Schemes registered under Building and Group Titles Act 1980 and South Bank Corporation Act 1989 are also included with an amended form.

The new regime will provide buyers with a right to terminate the sale contract, if disclosure fails to provide accurate information that, if would have been disclosed, the buyer would not have entered the sale contract.  If this occurs, the buyer holds a right to terminate the sale prior to settlement.

Whether you’re selling, buying, or assisting in the process as an agent, here’s your comprehensive and updated buying and selling checklist to guide a smooth, compliant, and well-informed transaction.

Why Seller Disclosure has been introduced in Queensland?

The purpose is to clarify the disclosure obligations of sellers, provide transparency for buyers of freehold land sales and provide key information to enable buyers to make an informed decision in relation to the purchase. 

There are limited circumstances where seller disclosure is not required for freehold sales, most of which involve government related scenarios.

Preparing Your Strata Property for Sale

Before listing your property, take the time to present it, including ensuring that the associated records are at their best. Consider:

• Reviewing your lot’s condition, especially exclusive use areas like courtyards or balconies.
• Confirming compliance with by-laws (e.g. air-conditioning units, shade sails, or screens).
• Addressing outstanding internal maintenance that could impact buyer impressions or contract conditions.
• Requesting your solicitor to arrange for the Form 2 Seller Disclosure form complete with documentation and prescribed certificates to be available to prospective buyers.

Engaging an Agent

Choose an agent with experience in strata sales, who understands body corporate records and the required disclosure. From 1 August 2025, agents must ensure the new prescribed Forms, Form 2 and included in it, either the Form 33 and Form 34 (for small schemes) Body Corporate Certificate for Sale of Lot, is issued to buyers, prior to signing a sale contract.

Your agent should:

• Understand how to present the unique value of strata living.
• Understand how to obtain the documentation to be disclosed whether in a sale or at auction.
• Be ready to coordinate inspections of the lot and common property.

Signs, Auctions, and Inspections

Under most CMS by-laws, signage may be restricted on common property. Check the scheme’s by-laws or seek committee approval if this is required.

Even when selling by auction, disclosure obligations still apply. From 1 August 2025, sellers must provide Form 2, Form 33 or 34 prior to auction day to potential buyers that are registered bidders.  The relevant legislation also details the obligations to supply the seller disclosure documentation where unregistered bidders attend.

What is the new Seller Disclosure Obligations?

From 1 August 2025, sellers must provide buyer with the following under the Form 2:

• Seller and property details.
• Title details, encumbrances and residential tenancy or rooming accommodation agreement.
• Unregistered and statutory encumbrances.
• Land use, planning and environment (including information about contaminated land).
• Buildings and structures (including works carried out to the lot by an owner builder).
• Rates and water services.
• Prescribed certificates (Form 33 or 34) and relevant documentation relating to:

• • Details about the body corporate.
  • Bylaws and Exclusive use entitlements.
  • Lot entitlements and financial information (including sinking fund forecast).
  • Owner contributions and amounts owing.
  • Common property and assets.
  • Contracts and authorisations.
  • Any other documents required to be disclosed under other legislation, such as cladding Form 42.

Failure to comply, without the seller providing a statement of why the documentation cannot be produced, allows the buyer to terminate the contract at any time before settlement.

Making Offers with Conditions (e.g., Pets or Improvements)

Buyers may include conditions for:

• Keeping a pet.
• Adding or modifying improvements.

Such requests are typically decided by the committee and should be clearly outlined in the contract to allow time for consideration and approval.

Change of Ownership Notification

After settlement, the new owner must notify the body corporate of the change in ownership.

The Form 8 – Information for the body corporate roll must be provided to the body corporate management company or body corporate within 1 month pursuant to the relevant legislation.  Fines may apply if this form is supplied in the prescribed timeframe.

This notification must include:

• Full name and contact details.
• Email and postal address for service for the change of registered owner.
• Settlement date and lot number.
• Managing agent details, power of attorney, change of tenant information, representative if a company is the owner (if applicable).

Failure to notify can result in misdirected levy notices and missed meeting notices, affecting your participation rights and responsibilities.

Moving Out and Moving In

Sellers:

• Book lifts or loading bays as required.
• Leave the lot and exclusive use areas in good condition.

Buyers:

• Notify the body corporate of your move-in date.
• Comply with move-in rules or booking systems to avoid delays.

Welcome to Your Body Corporate

As the new lot owner, you automatically become a body corporate member with rights and responsibilities including:

• Voting at general meetings.
• Compliance with by-laws.
• Shared responsibility for maintenance and levies.

Review Community Management Statement, including the by-laws and body corporate correspondence to familiarise yourself with operations and expectations.

Getting Involved

Active owners help schemes run smoothly. You can:

• Attend the AGM.
• Nominate for the committee.
• Vote on motions.
• Understand your financial contributions via the levies.
• Contribute positively to your community.

An engaged ownership group supports better decision-making, financial planning, and building harmony.

Linked Legislation & Forms

Legislation:

• Property Law Act 2023.
• Land Sales Act 1984 and Land Title Act 1994.
• Body Corporate and Community Management Act 1997 (Qld).
• Body Corporate and Community Management and Other Legislation Amendment Act 2023 (Qld).
• BCCM Regulation Modules.
• Building and Group Titles Act 1980.
• South Bank Corporation Act 1989.

Prescribed Forms:

• Form 2 – Seller Disclosure.
• Form 33 – Body Corporate Certificate or Form 34 Body Corporate Certificate (Small Schemes) for schemes under BCCMA.
• Form 18 – Body Corporate Certificate for BUGTA.
• Form 8 – Information Sheet (Change of Ownership).

Article Contributed by Nicky Lonergan, Chief Executive Officer of Archers the Strata Professionals.