Breach of Contract in Queensland Property Transactions: Risks and Remedies

Introduction

Property sales in Queensland are governed by strict legal and contractual rules. When one party fails to meet their obligations, whether that is a seller not providing accurate disclosure or a buyer missing a payment deadline, a breach of contract occurs.

Under the Property Law Act 2023 and Queensland’s 2025 disclosure reforms, contractual obligations are clearer, and penalties for non-compliance can be serious. Understanding the types of breaches, your rights, and the remedies available is essential for both buyers and sellers.

Breach of Contract in Property Transactions

A breach of contract occurs when either party fails to perform a term of the property contract. The impact of a breach depends on the seriousness of the failure and how it affects the other party’s ability to complete the transaction.

Some breaches give the other party the right to terminate. Others only allow for compensation or specific performance.

Types of Breach in Property Transactions

1. Material Breach

A material breach is a serious failure that affects the core purpose of the contract.
Examples include:

• Seller failing to provide mandatory disclosure (such as Form 2 or body corporate certificates)

• Buyer failing to pay the deposit

• Undisclosed encumbrances affecting the property

Material breaches usually give the innocent party the right to terminate the contract and claim compensation.

2. Minor Breach

A minor breach does not destroy the purpose of the agreement but still requires correction.
Examples include:

• Late delivery of non-essential documents

• Small administrative or clerical errors

• Delays that do not affect settlement

Minor breaches usually do not give a right of termination but may allow for compensation.

3. Anticipatory Breach

This occurs when one party indicates they will not fulfil their obligations before the due date.
For example:

• A buyer stating they cannot obtain finance

• A seller indicating they will not fix an issue required under the contract

The innocent party may treat the contract as terminated immediately.

Common Breach Scenarios

Breaches often arise from:

Seller breaches

• Failing to provide a compliant Form 2 Seller Disclosure Statement

• Attaching incorrect or outdated certificates

• Not disclosing body corporate levies, disputes or outstanding notices

• Refusing to complete required repairs

• Being unable to provide clear title at settlement

Buyer breaches

• Failing to pay the deposit or balance on time

• Not complying with building and pest deadlines

• Not taking required steps to obtain finance approval

• Failing to settle on the agreed date

Under the new disclosure regime, seller breaches, particularly disclosure-related failures, are more serious than ever.

Legal Remedies for Breach of Contract

Depending on the breach, the innocent party may have access to one or more remedies:

1. Termination of Contract

Available for material or anticipatory breaches.

2. Compensation (Damages)

Covers financial loss caused by the breach.

3. Specific Performance

A court order requiring the breaching party to perform their contractual obligations (commonly used when a buyer refuses to settle).

4. Retention of Deposit / Forfeiture

In some cases, the deposit may be kept or forfeited according to the contract terms and the nature of the breach.

Making or Defending a Claim for Breach

The process usually involves:

1. Reviewing the contract terms

2. Gathering evidence (emails, notices, certificates, inspection reports)

3. Issuing formal notice to the other party

4. Engaging legal representation

5. Attempting dispute resolution

6. Filing court proceedings, if required

Early communication and legal advice significantly reduce escalation.

Recent Legislative Reforms and Their Impact

The 2025 seller disclosure reforms have increased the legal obligations for sellers. The key impact:

• Failure to attach correct or current disclosure certificates is now a potential material breach.

• Buyers may terminate anytime before settlement for defective disclosure.

• Agents and lawyers face higher professional risk for incorrect disclosure.

This makes accuracy and timing crucial in Queensland transactions.

Preventing Breaches and Practical Tips

For Sellers:

• Prepare disclosure early

• Use platforms like SearchX to collect and validate all required documents

• Confirm body corporate forms (Form 33 or Form 34)

• Ensure title searches and certificates are current

For Buyers:

• Meet all payment and deadline requirements

• Keep all communication in writing

• Review disclosure documents carefully

SearchX automates disclosure preparation, reducing risk of seller-side breaches and protecting transactions from disputes.

Conclusion

A breach of contract can derail a Queensland property sale, cause financial loss, and trigger legal disputes. With the stricter 2025 disclosure requirements, sellers must be more diligent than ever, while buyers must ensure they meet all contractual deadlines.

Understanding your rights, the types of breaches, and how to respond protects you from avoidable risks, and using tools like SearchX keeps disclosure accurate, complete and compliant from the start.