High-Risk Properties and Seller Disclosure Obligations in Queensland

Introduction

Some Queensland properties carry additional risk. Whether due to flood history, bushfire exposure, or potential land contamination, these factors can materially affect value, insurance premiums and a buyer’s decision to proceed.

From 1 August 2025, the Property Law Act 2023 requires sellers to provide a fully compliant Form 2 Seller Disclosure Statement before the buyer signs. For high-risk properties, disclosure obligations increase significantly.

Failing to disclose these risks can give a buyer the right to terminate, even just before settlement.

What Counts as a “High-Risk” Property?

A property may be considered high-risk if any of the following apply:

Flood-Prone or Disaster-Affected Properties

Properties located in:

• Flood hazard overlays

• Areas with recorded flood inundation

• Cyclone, storm surge or erosion-affected zones

Buyers must be told whether the location affects future insurability or property value.

Contaminated or Potentially Contaminated Land

Land may be listed on:

• The Environmental Management Register (EMR)

• The Contaminated Land Register (CLR)

Or may be suspected contamination due to prior uses such as:

• Service stations

• Industrial premises

• Agricultural chemical storage

Bushfire and Fire Hazard Zones

Properties classified under planning schemes as:

• Bushfire-prone

• High-risk vegetation interface land

• Requiring bushfire safety assessments

These categories affect development conditions and insurance costs.

What Must Be Disclosed in the Seller Disclosure Report?

High-risk property disclosure is not optional.

The Form 2 must include:

• Details of overlays such as flood or bushfire

• Copies of relevant environmental notices

• Any contamination listing or suspected contamination

• Current building approvals tied to hazard mitigation (e.g. fire protection work)

• Any government proposals that may impact the property

Where a seller is unsure, they must investigate. “Not knowing” is no longer a defence.

Flood Risk: Legal and Commercial Implications

Flood risk can impact:

• Premiums and types of insurance available

• Building limitations

• Resale value

If a buyer later discovers the property has known flooding history and it was not disclosed, they can terminate and potentially pursue compensation.

Contamination and Environmental Hazards

Even suspected contamination triggers disclosure obligations.

Examples of trigger events:

• Underground storage tanks

• Illegal dumping history

• Dangerous goods registers

Buyers need this information to understand remediation requirements and development constraints.

Fire Hazards and Bushfire-Prone Areas

Properties within mapped bushfire areas must comply with:

• Building code bushfire attack level (BAL) requirements

• Vegetation clearance and management controls

• Ongoing hazard mitigation costs

Non-disclosure can lead to compulsory contract cancellation.

Buyer Rights and Remedies for High-Risk Properties

Where a seller fails to properly disclose risk, buyers may:

• Terminate the contract anytime before settlement

• Receive back their full deposit with no penalty

• Claim damages if they incur losses

• Lodge a complaint against the agent or conveyancer for misrepresentation

Buyers are empowered to protect themselves, and they will.

How Agents, Sellers and Lawyers Should Manage High-Risk Assets

To remain compliant:

• Order prescribed searches early

• Validate environmental and flood data against planning overlays

• Ensure all attached certificates are current

• Note any risk that may affect future use, development or insurance

Correct documentation must accompany Form 2, not be promised “later”.

How to Identify High-Risk Properties

A property risk assessment should include:

• Insurance eligibility checks

• Local government hazard maps and overlays

• Environmental register searches

• Historical disaster data

• Body corporate records (if applicable)

This can take significant time if handled manually.

How SearchX Simplifies Compliance for High-Risk Properties

SearchX helps reduce termination risk by:

• Automatically detecting property overlays and risk indicators

• Ordering environmental, flood, and planning searches in one workflow

• Flagging missing, outdated or inconsistent data

• Providing proof of accurate disclosure delivery before contract signing

• Allowing SearchX Legal to review Form 2 for compliance

Sellers avoid the stress. Lawyers avoid liability. Agents avoid collapsed contracts.

Conclusion

High-risk properties are common across Queensland, but the new laws mean there is zero margin for inaccurate or late disclosure.

The safest approach is clear: Use SearchX to ensure every hazard is identified, every certificate is attached, and every disclosure is delivered on time.

Compliance is no longer just a legal obligation, it is the key to a secure, successful sale.