If you are planning to purchase commercial property in Queensland, there are important legal changes that you should be aware of. Beginning 1 August 2025, the Property Law Act 2023 (Qld) will come into effect. This new legislation represents one of the most significant overhauls of property law in Queensland in over 50 years.
These changes have been introduced to bring greater transparency, certainty, and fairness to property transactions. As a commercial property buyer, you will benefit from stronger legal protections and a clearer understanding of what you are purchasing.
1. Mandatory Seller Disclosure: More Certainty Before You Commit
One of the most important changes under the new law is the introduction of a mandatory seller disclosure regime. Before you sign a contract, the seller must provide you with a completed (Form 2) Seller Disclosure Statement. This requirement is not optional. It is a legal obligation that applies to all commercial property sales.
What must the seller disclose?
The seller must provide a range of documents and certificates with the Form. These include:
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A title search and survey plan
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Any notices issued by the Queensland Building and Construction Commission relating to unlicensed or defective building work
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Notifications about rezoning, environmental issues, or heritage listing
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Pool compliance certificates, if applicable
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Body corporate certificates for strata-titled or commercial schemes
Why this matters to you
This new disclosure regime gives you access to key information about the property before you are legally bound to proceed with the purchase. If the seller fails to disclose required information, provides incorrect details, or omits something important, you have the right to terminate the contract. This right can be exercised at any time before settlement and does not require you to prove that you have suffered a financial loss.
However, there is an important caveat. By signing a contract that includes the seller’s disclosure statement, you are effectively accepting the property with any issues that have been disclosed. That means if a risk or defect is mentioned in the documents, you may not be able to rely on it later to cancel the contract. This is why it is absolutely essential that you have the disclosure documents reviewed by a solicitor before you sign anything.
We also strongly recommend including due diligence provisions in your contract. These clauses give you time and legal room to investigate the property more thoroughly after the contract is signed. This could include reviewing lease arrangements, checking for unregistered interests, or verifying compliance with local planning schemes.
A good legal review and well-drafted due diligence clause can give you peace of mind and protection.
2. Improved Transparency for Smarter Decisions
The new law shifts the focus from “buyer beware” to seller responsibility. This change is especially important in commercial transactions where complex leasing, title, or environmental issues can significantly impact your investment.
How this benefits buyers
Buyers will have a clearer understanding of the legal and practical issues affecting the property. Disclosure documents will now follow a standardised format, making it easier to review and compare different properties. Most importantly, if the information provided is false or incomplete and it affects your decision to buy, you have the legal right to terminate the contract.
This level of transparency empowers you to make more informed, confident decisions.
3. Modern Settlement and Contract Processes
The Property Law Act 2023 (Qld) also updates Queensland’s settlement and contract procedures to reflect how modern businesses operate.
Key improvements you should know
Electronic conveyancing is now formally recognised, allowing settlements to occur digitally. If settlement is scheduled for a non-business day, it will automatically move to the next business day without requiring any additional agreement between parties. In cases where a significant event such as a system outage or natural disaster causes a delay, the law now provides flexibility to extend settlement. Additionally, if the property is damaged before settlement takes place, you may be entitled to terminate the contract.
These updates make the settlement process more predictable, efficient, and adaptable to real-world challenges.
4. What Commercial Buyers Should Do Next
If you are planning to buy commercial property, the new law provides important safeguards. However, it also means you need to be proactive and thorough during the buying process.
Here are some practical steps you should consider:
| What to Do | Why It Matters |
|---|---|
| Ask for disclosure documents early | You will have more time to identify any issues or risks |
| Carefully review the attached certificates | You can assess potential zoning, title, or leasing issues |
| Include contract clauses that allow further investigations | This allows you to conduct a thorough due diligence after the contract is signed and make informed decisions |
| Engage an experienced property lawyer | Your lawyer will help ensure you understand what is being disclosed |
Final Thoughts: A Smarter Way to Buy Commercial Property
The Property Law Act 2023 (Qld) is designed to make Queensland’s property market more transparent and buyer-friendly. As a commercial property purchaser, these changes give you greater confidence, stronger legal rights, and more control over your transaction.
To make the most of these reforms, be sure to request all disclosure documentation early, seek professional advice on any certificates or risks, and ensure your contracts are drafted to protect your interests if unexpected events occur.
If you’re considering purchasing commercial property in Queensland, contact our team today. We’ll review your disclosure documents, draft due diligence clauses, and ensure your contract protects your interests from day one.
Call 1800BIZLAW to speak with one of our property lawyers now. Your peace of mind starts with a conversation.
