If you are planning to sell a commercial property in Queensland after 1 August 2025, there are important changes you need to know about. A brand-new contract, the REIQ Contract for the Sale and Purchase of Commercial Real Estate (First Edition), will replace the contracts sellers have been using for years.
For the first time, there will be one standard contract for every type of commercial property. Whether you are selling a freestanding commercial building, vacant land, farmland, or a lot in a Community Titles Scheme, you will now be using the same document.
While this might sound like it will make things easier, the new contract places more responsibility on sellers. The way GST and land tax are handled has changed, disclosure obligations are stricter than ever, and sellers who own body corporate properties will need to be careful about what they are agreeing to in the contract.
If you are thinking about selling, now is the time to understand how these changes affect you. One mistake could cost you a fortune or even allow the buyer to walk away from the sale.
One Contract for All Commercial Properties
Until now, different types of commercial properties used different contracts. A standalone building used one form, vacant land or farmland used another, and lots in a Community Titles Scheme had a separate contract altogether.
From 1 August 2025, this changes completely. You will now sign the same contract whether you are selling a warehouse, an office building, vacant commercial land, farmland, or a body corporate lot.
On the surface, this makes things simpler. However, it also means there are now sections in the contract that apply to every type of property, including additional warranties for body corporate properties. Sellers need to understand what they are agreeing to before signing, because those warranties can expose you to claims if they are wrong or incomplete.
What Sellers Need to Know About the New Contract
Here is what you, as a seller, need to know before you sign anything.
- Cyber Security Warning
The contract now includes a clear warning about the risk of payment scams and fraudulent emails. While this is directed to both buyers and sellers, it is important that you take it seriously. Always verify bank account details with your solicitor or agent by phone before transferring any money, as cyber criminals have targeted property transactions by intercepting emails and changing bank account details.
- GST Disclosure and Choices
Before signing, you will need to decide how GST will apply to the sale. The choices are the Margin Scheme, Going Concern, or Farm Land provisions. This is not something you can leave to your agent or decide later. The wrong selection could have serious tax and financial consequences, including disputes with the buyer, penalties, or delays at settlement. You should speak with your accountant before signing to make sure GST is handled correctly.
- Land Tax Adjustments
You will also need to decide how land tax will be treated in the contract. There are three options available. If no option is selected, the default position is that no adjustment will be made. In practical terms, this means you will be responsible for paying the land tax for the entire year, without any contribution from the buyer for the period after settlement. The other options allow for an adjustment based on either a single holding basis or your actual land tax liability. Making the wrong choice can be costly. You could end up paying more land tax than necessary, or the buyer may dispute the settlement figures, which can cause delays and complications at settlement.
- Community Titles Scheme and BUGTA Lots
If you are selling a lot in a Community Titles Scheme or a BUGTA parcel, there are new sections in the contract that include warranties about the body corporate. You will need to be sure you are disclosing everything you are required to, such as by-law contravention notices, proposed body corporate levies, or improvements on common property that benefit your lot. If you give a warranty that turns out to be incorrect, the buyer may be entitled to damages or could terminate the contract.
- Disclosure Obligations Remain Strict
The contract now includes a disclosure section, but this does not replace your legal obligation to give the approved Form 2 Seller Disclosure Statement and all prescribed certificates before the buyer signs the contract. If your disclosure statement is incomplete or incorrect, the buyer can terminate the contract at any time before settlement.
Why Getting Advice Early Matters
Selling a commercial property under the new regime is not just about filling in a new form. The choices you make on GST and land tax can have significant financial consequences, and body corporate warranties should never be given without properly reviewing the records.
The introduction of the REIQ Contract for the Sale and Purchase of Commercial Real Estate (First Edition) is one of the most significant changes to commercial property sales in Queensland. It simplifies the process by using one standard contract for all commercial properties, but it also places greater responsibility on sellers to get the details right.
By understanding these changes and working with experienced professionals early, you can avoid unnecessary risks and ensure your sale goes through without costly delays or disputes.
At Ardor Legal, we are already helping sellers prepare for these changes.
If you are planning to sell, now is the time to get professional advice. Speak to your accountant and contact us early so we can guide you through the new requirements, prepare the correct disclosure documents, and ensure the contract is completed properly. Getting the details right from the start can save you from costly mistakes and give you confidence that your sale will proceed smoothly.
Call us on 1800BIZLAW or book an appointment to discuss your sale.
FAQs
What is the new REIQ commercial contract?
It is the REIQ Contract for the Sale and Purchase of Commercial Real Estate (First Edition), which will be used for all commercial property sales in Queensland from 1 August 2025.
Which properties does it apply to?
The contract applies to all commercial properties, including freestanding buildings, vacant commercial land, farmland, and lots in a Community Titles Scheme or BUGTA parcel.
Do I still need to provide a Form 2 Seller Disclosure Statement?
Yes. You must still provide the approved Form 2 Seller Disclosure Statement and all prescribed certificates before the buyer signs.
What happens if GST or land tax is selected incorrectly?
You could end up paying more than you expected, face disputes with the buyer, or risk delays at settlement. In some cases, the buyer may even have the right to terminate the contract.
Should I get legal advice before signing?
Yes. Getting legal advice early is the best way to ensure your contract and disclosure statement are completed correctly and to avoid costly mistakes.
