Seller Disclosure – Form 2

There are several documents that are required regardless of the property type. It is also helpful for a seller to provide a few extra things to make the transaction easier.

Must Include:

• A title search and survey plan
• A CMS and body Coporate Certificate for a Unit or Townhouse
• A pool safety certificate
• A copy of any orders, notices or applications
– these can include local government show cause notices, notices of resumption.  If in doubt let our team know and we can advise
• If owner builder then compliance notices and disclosure will also be required

Helpful Documents:

• A copy of your last rates notice
• A copy of your last water bill

What searches you may have to do depend on a few factors including how familiar you are with the history of your property.

Is your property on the Contaminated Land Register or Heritage Register? Are there zoning details that a buyer might wish to consider?

Do you need a body corporate certificate, Pool Safetery Certificate or owner builder information?

We got it all covered in one place with our compliant Form 2.

The true legalese answer is… it depends! It really does! However!

We do not use third party providers for our searches so you are not paying intermediate fees.

Our team goes straight to the statutory source of the information which means less $$$ you have to spend for the same results.

So, your costs depend on your conveyancer.

With us, everything is included so you have complete ease of mind.

Everyone loves to swim, but it needs to be a safe one.

A pool safety compliance certificate is a must have as part of your Form 2 – well it is if you have a pool.

These must be provided by a qualified pool safety inspector.

If no pool certificate is available then you will have to provide a Form 36 Notice of No Pool Safety Certificate instead.

If the property being sold is part of a body corporate, the body corporate will provide the compliance certificate.

If the Seller Disclosure is not accurate then the Buyer may have an opportunity to terminate the contract. Getting it right first time is critical.

Termination Rights can arise under a variety of different circumstances.

Missing Prescribed Certificates

If any of the prescribed certificates are not provided to the buyer as part of the Form 2, then the buyer may terminate the contract at any time up to settlement.

No Disclosure Given

If a Form 2 Disclosure Statement is not given to the buyer prior to them signing a contract, then the buyer may terminate the contract at any time up to settlement.

Inaccurate Material

In some situations, a buyer may terminate a contract at any time up to settlement if:

• Any inaccuracy relates to a core or material matter; and
• Had the buyer been aware of that matter when they executed the contract they would not have signed it.

This covers a wide range of potential issues, so don’t risk your form 2 being the reason you miss out on a great sale.

Legislative Non-Compliance

Consideration has to be given to other legislation that affects your property sale, beyond the contract itself.

A buyer may be able to terminate a contract for example if disclosure is incorrect about contaminated land. The Environmental Protection Act 1994 (QLD) gives rise to termination rights if there is a failure to give notice about contaminated land.

Here is where it gets a bit tricky!

At an auction, the contract is formed when the hammer falls and the auctioneer calls out Sold!

A physical document is then executed to record the terms of the contract which is formed at the hammer fall.

So…when does the Form 2 Seller Disclosure need to be provided?

Registered Bidders

A Registered Bidder should be provided a copy of the Form 2 which has been signed by the seller(s) before the auction ends.

Unregistered Bidders

If a buyer has not pre-registered as a bidder and does so on the day of the auction, then they should be provided a signed copy of the Form 2 at the time they register.

Note for Agents

It is the agent or the seller’s responsibility to provide the signed Form 2 – Sellers Disclosure, to the buyer before the auction ends.

Although it is not required to disclose if the property for sale has been flooded, the majority of Form 2 property reports will contain this information.

A good solicitor or conveyancer who acts for the buyer will do this search regardless. If the facts relating to any flooding are not initially disclosed, this might lead to a buyer exercising their cooling off rights.

This means that as a seller you will be back to square one and looking for another buyer.

If flooding information is disclosed in the Form 2, the buyer is aware of it, and they still sign the contract, then the risk of termination under cooling off is substantially reduced.

You sure can! However, if there are any defects with the Disclosure Document then the buyer may terminate the contract.

Can my Agent?

There is the risk that your agent may not be fully qualified to prepare the disclosure. Furthermore, it could be seen that your agent is engaging in legal work which is unlawful under the Legal Profession Act 2007 (QLD).

Search Agent

Although there are a number of providers in this space, they are only as good as the information you submit to them. The resulting disclosure document may be defective depending on the actual awareness of the property details.

Additionally, you may not have recourse for any damages resulting from a defective Form 2. That is, it might be a case of no liability is offered in the production of a cookie cutter process.

Heritage Legal Group

We have successfully conveyed thousands of properties across Queensland. Our experience in residential conveyancing delivers compliant Form 2 – Seller Disclosures in a timely and efficient manner.

Heritage Legal Group will keep both you as a seller and your agent up to date with the process and provide a complete suite of documents.