Property developers selling lots off the plan must ensure disclosures are accurate to meet legal requirements and maintain contract enforceability
Off the plan developments can be commercially rewarding, but they come with strict legal obligations. Disclosure is one of the most important. Whether you are starting a residential subdivision or progressing a multi storey apartment project, clear and detailed disclosure is essential.
Queensland law expects developers to be transparent about what is being sold. If your disclosure is incomplete or inaccurate, the contract may not be enforceable. That creates risk not only for the buyer, but for your entire project. Understanding your obligations from the outset is key to ensuring contracts proceed smoothly and without complications.
Disclosure Requirements and Governing Law
Off the plan sales in Queensland are regulated by the Land Sales Act 1984. If the development involves a community titles scheme, such as a townhouse project or apartment complex, the Body Corporate and Community Management Act 1997 also applies.
Before a buyer signs a contract, developers must provide two key documents. These are required under Sections 10 to 12 of the Land Sales Act.
1. Disclosure Plan
This must be prepared by a cadastral surveyor. It must include the proposed lot’s boundaries, area, orientation, and location within the larger development. If the project involves operational work such as cut, fill, or retaining walls, the plan must also show surface contours and works detail.
2. Disclosure Statement
This document must be signed by the seller. It confirms whether development approval has been granted, states the maximum time allowed for settlement (usually 18 months), and informs the buyer of their termination rights. The disclosure statement must be provided with the plan before the contract is signed.
Other Matters Developers Should Disclose
While the Land Sales Act does not explicitly require disclosure of every easement, covenant, or planning control, it is expected that developers disclose any known restrictions or burdens that materially affect the lot.
Examples include easements for access, drainage, or infrastructure, registered covenants that limit development or usage, and planning conditions or infrastructure contributions.
These matters are not listed in the legislation but are generally disclosed to ensure the information provided is accurate and complete. Failing to include them can lead to buyer termination rights under Section 13, which deals with material inaccuracies or changes discovered after the contract is signed.
Disclosure of these matters may also be required by other legislation, development conditions, or as part of broader consumer protection obligations.
Additional Disclosures for proposed Community Title Schemes
If your development involves a community titles scheme, such as townhouses or apartments, the Body Corporate and Community Management Act 1997 sets out additional disclosure requirements on top of those required under the Land Sales Act 1984.
As the developer, you must provide the buyer with proposed:
- Community Management Statement (CMS), which outlines the legal framework for the body corporate, including how it is structured and how common property is managed
- Administrative and sinking fund budget, showing estimated body corporate contributions
- Bylaws or exclusive use allocations that apply to the lot being sold
These documents are important for buyers to understand their ongoing financial commitments, shared property responsibilities, and any rules that will apply to their use and enjoyment of the lot and common property.
Providing these disclosures is not only a compliance requirement but also part of broader consumer protection expectations. Failing to provide accurate and complete community title documentation can lead to contract issues, buyer termination rights, or regulatory consequences.
Sunset Dates and Buyer Termination Rights
Under the Land Sales Act, developers must settle the contract within 18 months of signing, unless the contract specifies a longer period.
If this sunset period expires without settlement, the buyer has a statutory right to terminate and receive a refund of all amounts paid.
Buyers also have the right to terminate if a material change occurs that causes them material prejudice. This could include a change in the lot’s layout, encumbrances, or zoning, especially where the change impacts the buyer’s use or expectations.
Avoiding Common Disclosure Mistakes
Disclosure failures can expose developers to contract termination, legal issues, and reputational damage. Common issues include providing an outdated survey or subdivision plan, failing to disclose known encumbrances or planning approvals, omitting body corporate documentation in strata projects, and not issuing an updated disclosure if changes occur during the project.
To stay compliant, developers should ensure disclosures are accurate at the time of contract and updated if any relevant information changes.
Best Practice for Developers
Begin your disclosure preparation early, preferably before marketing begins. Ensure your cadastral surveyor prepares a current and compliant plan. Review all easements, approvals, and restrictions with your legal team.
Maintain full documentation of what has been disclosed and when. If changes arise, seek legal advice immediately to determine whether a new disclosure statement is needed.
Providing full and accurate disclosure protects both your project and your buyer relationships.
Conclusion
Selling off the plan land in Queensland requires more than a signed contract. The Land Sales Act 1984 and, where applicable, the Body Corporate and Community Management Act 1997 impose clear and enforceable disclosure obligations on property developers.
Providing accurate and current information about the lot and development is essential to legal compliance. It also reduces the risk of legal complications, delays, or contract cancellations.
Need Legal Advice on Disclosure Obligations
Ardor Legal works closely with Queensland property developers on all aspects of off the plan contracts. We assist with disclosure plans and statements, master contracts including special conditions, easements, covenants, community title schemes, and title registration. Where applicable, we also prepare associated Community Management Statements to ensure your project remains compliant and commercially secure.
If you want clear legal advice, contract certainty, and peace of mind from planning through to settlement, contact us today to schedule a meeting with one of our experienced property lawyers.
Frequently Asked Questions (FAQs)
Does the new Property Law Act 2023 apply to off-the-plan land sales?
No. Off-the-plan sales are excluded from the PLA 2023 disclosure regime. They’re still governed by the Land Sales Act 1984 and other relevant legislation.
What must be included in a disclosure statement for a proposed lot?
Lot number, boundaries, site plans, encumbrances, proposed works, and for strata lots, CMS and budget information.
What is a “material change” and when must it be re-disclosed?
A change that significantly impacts the buyer’s interest in the lot—if it causes prejudice, it must be disclosed, and the buyer may terminate.
How long does a developer have to register proposed lots and complete settlement before a buyer can terminate the contract?
For off the plan contracts involving proposed lots in Queensland, developers generally have up to 18 months from the contract date to register the new titles and complete settlement, unless a longer period is stated in the contract. If registration and settlement are not completed within this timeframe, the buyer may have the right to terminate the contract and receive a full refund of all amounts paid.
What is a disclosure statement and when must it be given in an off the plan contract?
A disclosure statement is a document the developer must give the buyer before they sign an off the plan contract for a proposed lot. It must be signed by the seller and include key information such as whether development approval has been granted, the time allowed for registration and settlement, and the buyer’s termination rights. The disclosure statement must be provided together with the disclosure plan to comply with the Land Sales Act 1984.
What additional disclosure documents are required for proposed lots in a community titles scheme?
For off the plan contracts involving proposed lots in a community titles scheme, developers must provide additional disclosure documents. These include a draft Community Management Statement, a proposed budget for the body corporate, and any draft bylaws or exclusive use schedules. These documents are required under the Body Corporate and Community Management Act 1997 and help buyers understand their rights, obligations, and shared property arrangements.
