What to Do About Undisclosed Property Issues After Settlement

Introduction

Discovering hidden problems in a property after settlement can be stressful, costly, and legally complex. Whether it is an unapproved structure, outstanding body corporate levies, flooding risks, building notices, or an undisclosed encumbrance, buyers in Queensland have specific rights, and sellers face real consequences.

Under the Property Law Act 2023, which fully commenced on 1 August 2025, seller disclosure rules are stricter than ever. If a seller fails to disclose prescribed information in the Form 2 Seller Disclosure Statement, they may be liable even after the property settles.

This guide explains what undisclosed issues mean for buyers, the remedies available, and the risks sellers and agents face under the 2025 compliance regime.

Buyer Protections and Seller Obligations

Queensland law requires sellers to provide a complete, accurate, and up-to-date disclosure package before the buyer signs the contract. This includes:

• Form 2 Seller Disclosure Statement

• Prescribed certificates and searches

• Body corporate certificates (Form 33 or Form 34 where applicable)

• Environmental, planning, and building compliance information

If something material is missing, incorrect, or misleading, the buyer may have a claim even after settlement depending on the severity and the circumstances.

Sellers and agents now have a higher legal duty to ensure disclosure is correct. Mistakes can expose them to compensation claims, professional negligence issues, or regulatory complaints.

Types of Undisclosed Issues

After settlement, buyers commonly discover problems such as:

• Unapproved structures (Carports, patios, renovations without permits)

• Building or pool safety non-compliance

• Undisclosed encumbrances (Easements, covenants, statutory notices)

• Body corporate disputes or debts

• Environmental issues (Contaminated land, flood overlays)

• Boundary or fencing discrepancies

• Outstanding council or infrastructure charges

• Hidden defects known to the seller

Whether the buyer has a remedy will depend on whether the issue was something the seller should have disclosed under the 2025 rules.

Legal Remedies for Buyers

If a buyer discovers a non-disclosed issue after settlement, possible remedies include:

1. Compensation (Damages Claim)

The buyer may seek financial compensation for losses caused by the undisclosed issue.

2. Breach of Contract Claim

If the seller failed to disclose something they were legally required to disclose, the buyer may claim breach of contract.

3. Misrepresentation or Deceptive Conduct

If the seller knew about the issue and hid it, the buyer may have grounds for an action under:

• the Australian Consumer Law

• the Property Law Act 2023

• or common law misrepresentation

4. Body Corporate or Council Action

If the issue relates to body corporate levies, building notices or infrastructure charges, the buyer may need to engage the relevant authority as part of their claim.

Process to Address Post-Settlement Findings

1. Document and Record the Issue Immediately

Buyers should gather:

• Photos

• Expert reports

• Builder or plumber assessments

• Correspondence with agents or sellers

2. Review the Disclosure Provided

Compare the issue against what the seller disclosed in their Form 2 and supporting documents.

3. Notify the Seller or Agent Promptly

Early notification can prevent disputes escalating.

4. Seek Legal Advice

A property lawyer will advise whether the issue amounts to a breach of disclosure obligations under the 2025 regime.

5. Explore Resolution Options

These may include:

• Compensation negotiation

• Dispute resolution

• Body corporate involvement

• Formal complaint

• Court proceedings (as a last resort)

Seller and Agent Risks

If a seller failed to disclose something required by law, they may be liable for:

• Financial compensation

• Legal costs

• Reputational damage

Agents may also face claims if they:

• Gave incorrect assurances

• Failed to check information

• Did not properly advise the seller about disclosure obligations

The stakes are significantly higher under the new disclosure system.

How SearchX Can Help

SearchX helps prevent post-settlement disputes by ensuring sellers provide complete, compliant disclosure up front. The platform:

• Automates collection of required searches and certificates

• Ensures the correct body corporate form (33 or 34) is attached

• Identifies missing, expired, or inconsistent documents

• Packages everything into a compliant Form 2

• Enables legal review through SearchX Legal

A properly completed disclosure pack dramatically reduces the risk of disputes and claims after settlement.

Conclusion

Undisclosed issues discovered after settlement can lead to costly disputes for buyers and serious liability for sellers. Queensland’s 2025 seller disclosure regime places heavy emphasis on accuracy and compliance, meaning the best protection is complete and transparent disclosure before the contract is signed.

Using a platform like SearchX reduces the chance of mistakes, protects both parties, and gives buyers confidence that the property they are purchasing has been properly assessed and disclosed.