Buyer Termination Rights Under Queensland’s New Seller Disclosure Laws

Introduction

As of 1 August 2025, Queensland has a new approach to property transactions. Under the Property Law Act 2023, sellers must provide a fully compliant Form 2 Seller Disclosure Statement and all prescribed documents before the buyer signs a contract.

If disclosure is incomplete, inaccurate or delivered late, buyers are given strong termination rights. That means a buyer could walk away from a contract even days before settlement, and sellers have little recourse.

This makes compliance a top priority for agents, conveyancers, and sellers. The best way to protect a sale today is to understand exactly when buyers can terminate and how to prevent these situations.

When Can a Buyer Terminate a Contract?

A buyer may terminate a contract under the new seller disclosure regime if:

• Any prescribed document is missing

• Any information in the disclosure pack is inaccurate

• A mandatory certificate (e.g. body corporate, pool, title search) is outdated

• Disclosure is delivered after the buyer signs

• The buyer was misled or not properly informed of issues affecting the property

Termination rights apply up until settlement, not just during the cooling-off period.

Example: A seller lists a strata unit but attaches Form 33 when the property is actually a two-lot scheme requiring Form 34. Buyer can terminate anytime, even the afternoon before settlement.

This is why the correct selection of documents is crucial.

What Happens Immediately After Termination?

If a buyer terminates due to defective disclosure:

• The buyer’s deposit must be refunded in full

• The buyer owes no penalty to the seller

• The buyer can move on to another property without consequence

Meanwhile, the seller must:

• Restart the entire sale process

• Pay ongoing mortgage, rates, insurance and advertising

• Disclose the issue to future buyers if the problem persists

For sellers, the commercial impact can be significant.

Financial and Commercial Impacts on Sellers

Termination can lead to:

• Loss of deposit security

• Disruption to future purchase plans

• Additional marketing and campaign costs

• Longer time on market

• Lower sale price due to urgency

One disclosure error can take weeks or months to repair, especially if new certificates must be ordered before relisting.

Risk and Liability for Agents and Lawyers

Under the new laws:

• Sellers are primarily liable for defective disclosure

• Agents may face complaints if they failed to properly advise about disclosure timing or accuracy

• Lawyers and conveyancers are accountable for the legal correctness of the disclosure package

Professional negligence claims are a growing risk under the strengthened regime.

How Buyers Should Exercise Termination Rights

To validly terminate, a buyer should:

1. Identify the disclosure defect clearly

2. Provide written notice of termination to the seller or agent

3. Act before settlement occurs

4. Retain evidence such as email delivery timestamps and document reviews

Buyers are encouraged to receive legal advice before terminating because disputes can arise if the seller disagrees.

How SearchX Reduces Termination Risk

Manually collecting disclosure documents from different agencies is time-consuming and prone to errors. SearchX ensures sellers and agents stay compliant by:

• Automating the collection of all prescribed searches and certificates

• Confirming whether the property requires Form 33 or Form 34

• Identifying missing or expired documents before disclosure packs are delivered

• Tracking exact timestamps for proof of pre-contract delivery

• Offering legal review through SearchX Legal to verify compliance

The result?
A disclosure package that is accurate, complete, compliant and delivered on time, protecting both the sale and the parties involved.

Conclusion

The new seller disclosure regime in Queensland places far greater power in the buyer’s hands. While this improves transparency, it also exposes sellers to real contractual risk if disclosure is not managed with precision.

Sellers can no longer afford a manual, piecemeal approach. With SearchX, every required document is tracked, verified and packaged correctly, ensuring the transaction remains secure from first inspection to settlement.