Buying or selling a home is one of the biggest financial decisions most Queenslanders will ever make. And while most transactions go through without a hitch, things do go wrong. Contracts fall over, settlements get missed, deposits are forfeited, and parties end up in costly disputes.
In August 2025, Queensland’s property laws changed significantly under the new Property Law Act 2023 (Qld). The rules around seller disclosure, deadlines, and buyer rights have shifted in ways that many buyers, sellers, and even agents are still catching up with.
If your property deal has hit trouble, or you want to know what to do if it does, this article explains the key issues, your rights, and when you need a solicitor rather than a licensed conveyancer.
What This Guide CoversFrom the mandatory Form 2 disclosure requirements to handling missed settlement dates, deposit disputes, and ATO clearance traps—this article identifies the most common legal risks in modern Queensland property transactions |
What Changed on 1 August 2025?
Queensland’s Property Law Act 2023 replaced legislation that had been in place for over 50 years. The most significant change for everyday buyers and sellers is the introduction of a mandatory seller disclosure scheme.
Before August 2025, Queensland operated on a “buyer beware” model. Buyers were largely responsible for finding out what they were getting into after signing a contract. That has now changed.
From 1 August 2025, sellers of most residential properties in Queensland must provide a buyer with a completed Form 2 Seller Disclosure Statement, along with a suite of prescribed certificates, before the buyer signs the contract. This includes details like title searches, zoning information, pool safety certificates, body corporate information, easements, and notices under legislation such as the Queensland Building and Construction Commission Act 1991, the Building Act 1975, and the Environmental Protection Act 1994.
The disclosure must be accurate at the time it is given. Incomplete, missing, or inaccurate disclosure can give the buyer significant legal rights, including the right to terminate the contract right up until settlement, even if the contract is unconditional.
This is one of the most substantial shifts in Queensland property law in decades. And it is already creating disputes.
Need a clear, step-by-step breakdown of your obligations?We have simplified the new rules to help you avoid common pitfalls. Access our Free Guide to Queensland’s New Property Disclosure Laws to ensure you are fully informed. |
The Most Common Ways Property Deals Go Wrong in Queensland
1. Failed or Incomplete Seller Disclosure
Under the new laws, if a seller fails to provide the required Form 2 and prescribed certificates before the buyer signs, or if the disclosure is materially inaccurate or incomplete, the buyer may be entitled to terminate the contract at any time before settlement.
That means a buyer could walk away from a contract days before settlement, after months of planning, bank arrangements, and personal upheaval, if the seller got the paperwork wrong.
For sellers, the risks are real:
- A missing document could void the entire sale
- Inaccurate information could constitute misleading and deceptive conduct under the Australian Consumer Law, giving the buyer a right to compensation
- Sellers may face fines or liability for misleading information in the disclosure statement
What gets sellers into trouble most often? Unapproved structures not disclosed. Environmental orders not picked up. Pool safety certificates that have lapsed or were never obtained. Body corporate issues glossed over. Easements on title that were not flagged.
Getting the Form 2 right is not just a paperwork exercise. It is a legal obligation with serious consequences if done poorly.
Are you a seller unsure whether your disclosure is correct? Or a buyer who received incomplete or inaccurate documents? Contact our property law team today. We act for clients across Queensland electronically and from our offices in Brisbane, the Gold Coast, and the Sunshine Coast.
2. Missed Settlement Dates
In Queensland, the settlement date is treated as an essential term of the contract. Unlike some other Australian states, time is of the essence in Queensland property contracts. If you are not ready to settle on the agreed date, the other party can take immediate action.
If the buyer misses settlement:
The seller does not have to simply wait. If the buyer fails to settle on time, the seller can issue a formal Notice to Complete, giving the buyer a specified period to complete the transaction. If the buyer still fails to settle, the seller may be entitled to:
- Terminate the contract
- Retain the deposit
- Claim additional damages beyond the deposit amount, including any loss on resale, legal costs, and holding costs
If the seller misses settlement:
The buyer is not without options either. The buyer can refuse to grant an extension, formally confirm they are ready, willing and able to settle, and if the seller cannot settle by close of business on that day, the buyer may terminate the contract, recover the deposit, and sue for damages.
In practice, parties often negotiate extensions when delays occur. But there is no legal obligation to agree to one, and refusing an extension can sometimes be used strategically to exit a contract that one party has had second thoughts about.
Two 2025 Queensland court decisions, Storey v Britton [2025] QSC 125 and Britton v Storey [2025] QCA 127, illustrate exactly this. A property sold for $3,264,000 ended up in protracted litigation after settlement was missed. The Queensland Court of Appeal ultimately confirmed that rising property values, with the property later said to be worth up to $4.5 million, gave the sellers no right to avoid their contractual obligations. The costs consequences were significant, including indemnity costs orders against a party who failed to comply with court orders.
The lesson: once you are locked into a contract in Queensland, you are bound. Market movements after signing do not give you a way out.
3. Deposit Disputes
Deposits in Queensland property contracts are typically up to 10% of the purchase price. They are held in a trust account, either by the real estate agent or a solicitor, until settlement.
In a recent Queensland Supreme Court decision, Evans v Jan [2025] QSC 31, a buyer lost $98,500 because the deposit was paid a day late. The seller terminated the contract and successfully claimed forfeiture of the deposit. The court found that the real estate agent had no authority to permit late payment. Only the seller could do that, and the buyer paid the price.
That outcome underscores a simple but painful truth: in Queensland property contracts, deadlines matter.
A deposit is most at risk in these common situations:
- Buyer fails to settle on time. After a contract becomes unconditional, failing to settle on the agreed date can give the seller grounds to terminate and retain the full deposit.
- Buyer tries to exit under building and pest. If a buyer terminates under the building and pest inspection clause without a genuine, reasonable basis, the seller can argue the termination was repudiatory and claim the deposit.
- Buyer does not make genuine attempts to obtain finance. Under a standard REIQ contract, a buyer must genuinely try to obtain finance. If they simply change their mind and use the finance condition as an exit strategy, the seller can challenge that termination and seek the deposit.
- Late payment of deposit. As Evans v Jan shows, even a one-day delay can be enough to lose your deposit entirely.
Deposit forfeiture is not automatic in every situation. Contract wording, whether the seller accepted the late settlement or granted an extension, and the specific circumstances all matter. But the risks are real and the amounts involved are significant.
Is your deposit at risk, or are you a seller seeking to forfeit a buyer’s deposit? Get legal advice immediately. These disputes move quickly.
4. ATO Clearance Certificates: A New Trap From January 2025
From 1 January 2025, every property sale in Queensland, regardless of the sale price, requires the seller to provide an ATO Clearance Certificate before or at settlement. Previously this only applied to properties valued at $750,000 or more.
If a clearance certificate is not provided at settlement, the buyer is legally required to withhold 15% of the purchase price and remit it to the Australian Taxation Office. The seller then has to wait until their next tax return to claim a refund of amounts incorrectly withheld.
On a $1,000,000 sale, that means $150,000 held by the ATO until the seller completes a tax return, which is a significant cash flow problem that can derail post-settlement plans.
Each individual listed on the title must obtain their own certificate. If even one co-owner fails to provide one, withholding applies to that owner’s share.
Clearance certificates can take up to 28 days to obtain from the ATO. Missing this step is an avoidable mistake that a good property solicitor will catch, but it continues to catch sellers off guard.
5. Unapproved Structures and Building Compliance Issues
Unapproved structures, whether a shed built without council approval, a deck that does not meet the Building Act requirements, or a granny flat constructed without proper sign-off, are a significant source of conveyancing disputes in Queensland.
Under the new seller disclosure regime, sellers must disclose notices issued under the Building Act 1975 and the Queensland Building and Construction Commission Act 1991. Failure to disclose a known issue can give a buyer grounds to terminate or seek compensation.
Even where disclosure has occurred, buyers sometimes proceed and then face the costs of rectification or council enforcement action. These situations can give rise to claims against the seller, the conveyancer, or the solicitor who failed to advise properly.
6. Body Corporate and Community Title Disputes
For units, townhouses, and properties within community title schemes, buying into a body corporate comes with obligations and risks that many buyers underestimate.
The seller must now provide a body corporate certificate and a copy of the community management statement as part of the Form 2 disclosure package. Buyers who overlook what the body corporate certificate actually says, including pending levies, unresolved disputes, and major upcoming works, can find themselves financially exposed shortly after settlement.
Disputes arising from body corporate matters, defective common property, or disagreements between lot owners and the body corporate committee are a growing area of property litigation in Queensland.
7. Off-the-Plan Contracts and Sunset Clauses
Buying off-the-plan in Queensland carries risks that do not apply to standard residential sales. The new seller disclosure regime under the Property Law Act 2023 does not apply to proposed lots sold off-the-plan. These remain governed by the Land Sales Act 1984 (Qld) and the Body Corporate and Community Management Act 1997 (Qld).
Sunset clauses are provisions that allow a developer to terminate a contract if a project is not completed by a specified date. They have been used in the past to exit contracts when property values have risen, only to re-sell at a higher price. Queensland law provides some protections against this, but navigating an off-the-plan dispute requires careful legal advice.
8. Title Defects and Encumbrances
Even with the best disclosure in place, title issues can emerge. Unregistered encumbrances, caveats lodged by third parties, easements affecting use of the land, or restrictions on what can be built can all delay settlement, reduce the property’s value, or in serious cases make a transaction impossible to complete.
A caveat lodged against a property by a creditor of the seller, for example, can bring a settlement to a complete halt. Knowing how to deal with caveats, including when to apply for their removal, is an area where a property solicitor adds real value over a licensed conveyancer.
When Do You Need a Solicitor, Not Just a Conveyancer?
Licensed conveyancers do an important job. They are trained to handle standard property transactions and can manage most straightforward sales and purchases. But their scope is limited.
In Queensland, if your transaction involves a dispute, a default, a threatened termination, a forfeiture of deposit, a court application, or any of the complex issues described in this article, you need a solicitor rather than a licensed conveyancer.
A solicitor can:
- Advise on contractual rights and remedies when a transaction goes wrong
- Issue or respond to formal Notices to Complete
- Act in court or tribunal proceedings
- Pursue or defend claims for damages, including losses beyond the deposit
- Handle caveats, injunctions, and urgent applications
- Advise on professional negligence claims against a conveyancer who made errors
- Deal with body corporate and community title disputes
- Handle related estate, family law, or commercial law issues that sometimes intersect with property disputes
Our firm handles all areas of law, from property and conveyancing to litigation, commercial, family, and estates matters. When a property dispute spills into another area of law, we have the team to handle it all under one roof.
Our offices are in Brisbane, the Gold Coast, and the Sunshine Coast. We act electronically across all of Queensland. If your property deal has gone wrong, contact us today. The sooner you get advice, the more options you have.
What to Do If Your Property Deal Is in Trouble
- Act immediately. In Queensland property contracts, delays cost rights. The longer you wait, the fewer options you may have.
- Get everything in writing. Whether it is an extension, a variation, or a dispute, make sure communications are documented.
- Do not rely on what the real estate agent tells you. Agents are not solicitors. As Evans v Jan demonstrated, an agent’s assurance that a late payment is fine can mean nothing legally.
- Do not assume the problem will resolve itself. A missed deadline in a Queensland property contract can have permanent, expensive consequences.
- Call a solicitor who handles property litigation. Not every law firm does. Make sure the person you call has experience not just in routine conveyancing, but in handling disputes when things go wrong.
We’re Here When Things Go Wrong
Our team handles property transactions and property disputes across Queensland, from Brisbane, the Gold Coast, and the Sunshine Coast, and electronically for clients anywhere in the state.
Whether you are a buyer facing a seller who won’t settle, a seller whose buyer has walked away, a party whose deposit is at risk, or someone who has received a Form 2 that raises red flags, we can help.
We also handle the matters that sit alongside property disputes: estate administration where a deceased estate property is involved, family law property settlements, commercial disputes, and professional negligence claims.
Get in touch with our team today.
📍 Brisbane | Gold Coast | Sunshine Coast, and electronically across all of Queensland
This article is general information only and does not constitute legal advice. Laws and their application depend on your specific circumstances. Please contact our office for advice tailored to your situation.
Article researched and written April 2026. Key sources: Property Law Act 2023 (Qld); Queensland Government seller disclosure scheme; Form 2 Seller Disclosure Statement; Evans v Jan [2025] QSC 31; Storey v Britton [2025] QSC 125; Britton v Storey [2025] QCA 127; REIQ commentary on agent authority.bcg
