Seller Disclosure in Queensland – What You Need to Know

When selling a residential property in Queensland, the concept of seller disclosure is an important part of the conveyancing process. Seller disclosure involves informing potential buyers of certain details about the property before the sale is completed. This process helps ensure transparency, reduces the risk of disputes, and provides buyers with the information they need to make an informed decision.

What is Seller Disclosure?

In simple terms, seller disclosure is the legal responsibility of the seller to provide information about the property that could affect the buyer’s decision to purchase. While Queensland does not have as extensive disclosure requirements as some other states, there are still specific obligations that sellers must meet under various laws and regulations.

Key Areas of Disclosure

Title and Encumbrances The seller must ensure that the title is free of any undisclosed encumbrances such as easements, covenants, or mortgages that might affect the buyer’s use of the property.
Body Corporate Information For properties that are part of a body corporate (such as units or townhouses), sellers are required to provide a body corporate disclosure statement. This includes information about levies, insurance, and any planned works.
Pool Safety Compliance If the property has a pool or spa, sellers must provide a valid pool safety certificate. If one is not available, a Form 36 (notice of no pool safety certificate) must be issued.
Smoke Alarm Compliance Residential properties must comply with Queensland’s smoke alarm laws, which require the installation of interconnected photoelectric smoke alarms.
Building Approvals and Works Any building work or renovations completed on the property must have the correct approvals. Unapproved structures or additions may need to be disclosed to the buyer.
Flooding and Environmental Risks While sellers are not legally required to disclose every potential risk, issues such as flooding history, contamination, or significant environmental concerns should be communicated to avoid future disputes.
Tenancy Arrangements If the property is currently tenanted, the details of the tenancy agreement, including lease terms and bond arrangements, should be disclosed.

Why Disclosure is Important

Failure to provide proper disclosure can lead to significant consequences, including delays in settlement, legal disputes, or even the termination of the contract. Clear and accurate disclosure creates transparency between the seller and the buyer and helps ensure the sale proceeds smoothly.

Recent Trends in Seller Disclosure

With increasing buyer awareness, there is a growing expectation for sellers to go beyond minimum legal requirements. Providing upfront details such as recent pest or building reports, zoning details, or nearby development plans can give buyers confidence and improve the chances of a successful sale.

RMT Legal is able to assist in preparing these disclosure documents. Contact us today for more information or guidance on ensuring your property sale is compliant.

Reserve Bank of Australia announced its first rate cut since 2020, but what does this mean for you?

On 18 February 2025, the Reserve Bank of Australia (RBA) board made a decision to lower the cash rate to 4.10%. This has been the first rate cut since 2020.

The major banks have agreed that on 28 February 2025, all home owners will receive the rate cut, but they are making sure it takes up to 22 days to be passed on. The banks are under no obligations to pass on the interest rate cuts, and evidence shows that they have been more inclined to take a longer period of time to reduce the rates, then they are when they are given the go ahead to increase the rates.

It can be said that those homeowners with a mortgage of $500,000.00 will see a reduction of approx $77 in their monthly repayments.

While this rate cut is not significant, it does improve the borrowing power for first home buyers and will help those who want to negotiate with banks on a better home loan deal. Unfortunately, at this stage, it is not likely to reduce the property prices.

Should you require any legal assistance in your conveyance, or general advice on your mortgage repayments and property contracts, please contact Rachel Turk today on 0490 469 397 or by email at rachel@rmtlegal.com.au.

Do you have a Supplier, Contractor, or Friend who owes you money under an Agreement? Does your Agreement allow you to lodge a Caveat over their interest in Property?

If you have provided goods or services to someone under an agreement and they owe you money, you may be wondering what options are available to secure your interest and improve your chances of recovering the debt. One potential avenue in Queensland is lodging a caveat over the debtor’s property—provided you have a valid caveatable interest.

What Is a Caveat?

A caveat is a legal notice lodged with the Queensland Land Titles Office that serves as a warning to anyone dealing with a particular piece of land. It effectively prevents the owner from selling, transferring, or mortgaging the property until the caveat is removed. However, a caveat can only be lodged if you have a legitimate legal interest in the property.

Can You Lodge a Caveat Over a Debtor’s Property?

In Queensland, you can only lodge a caveat if you have a recognised ‘caveatable interest’ in the property. Simply being owed money does not automatically give you the right to lodge a caveat. Your entitlement to do so must arise from an agreement that expressly grants you an interest in the debtor’s land.

Some common scenarios where a caveat might be justified include:

A written agreement that explicitly states you have a charge over the debtor’s property as security for payment.
A mortgage or equitable charge over the debtor’s land.
A court order granting you an interest in the property.

Risks of Lodging a Caveat Without a Proper Interest

If you lodge a caveat without a valid legal basis, the property owner may apply to have it removed. If the court finds that you did not have a legitimate claim, you may be ordered to compensate the property owner for any losses suffered. Additionally, wrongful lodgement of a caveat can expose you to legal penalties and costs.

How to Protect Your Interests

To improve your chances of securing a valid caveatable interest:

Ensure that any contract or agreement includes a properly drafted clause granting you an interest in the debtor’s land.
Seek legal advice before lodging a caveat to confirm its validity.
Consider alternative debt recovery options, such as obtaining a court judgment or issuing a statutory demand.

Need Legal Assistance?

If you are owed money and want to explore your options, including whether you have grounds to lodge a caveat, RMT Legal can help. Contact us today for expert advice on securing your interests and recovering what you are owed.

If you are a creditor who believes that a debtor owes you money and you want to send a demand notice, but are not sure what to do – Here’s why you should engage a law firm.

As a creditor, recovering money owed to you can be a challenging process. If a debtor has failed to make payment, issuing a formal demand notice is often the first step in enforcing your rights. However, sending a demand notice yourself may not always yield the best results. Engaging a law firm to issue a legal demand notice offers several advantages that can significantly improve your chances of recovering the debt effectively and efficiently.

1. A Legally Sound and Persuasive Notice

A demand notice issued by a law firm carries more weight than one sent directly by a creditor. Lawyers ensure that the letter is legally sound, drafted in accordance with relevant laws, and contains precise wording that clearly outlines the debtor’s obligations. A professionally prepared legal demand letter often prompts quicker responses from debtors, as they recognize the seriousness of the situation.

2. Increased Likelihood of Payment

Receiving a demand notice from a law firm signals to the debtor that legal action is imminent if they fail to respond. This added pressure often results in quicker settlements, as debtors prefer to resolve matters before they escalate. Many debtors take a lawyer’s letter more seriously than a standard request from a creditor, making it more likely that they will prioritize the payment.

3. Protection Against Legal Pitfalls

Improperly worded demand notices can expose creditors to legal risks, including allegations of harassment or unfair debt collection practices. A law firm ensures that the demand letter is assertive yet legally compliant, reducing the risk of counterclaims or disputes that could complicate the recovery process.

4. Preparation for Legal Action if Necessary

If the debtor fails to respond to the demand notice, the next step may be legal proceedings. Having a law firm involved from the outset ensures that all documentation is correctly prepared and that you are in the best possible position to pursue further action, such as filing a claim in court or initiating enforcement proceedings.

5. Saves Time and Reduces Stress

Chasing unpaid debts can be time-consuming and frustrating. By engaging a law firm, you delegate the burden of debt recovery to professionals who are experienced in handling such matters. This allows you to focus on your business or personal affairs without the added stress of pursuing non-paying debtors.

Conclusion

If you are a creditor facing difficulties recovering money from a debtor, engaging a law firm to issue a demand notice can significantly improve your chances of success. A well-drafted legal demand notice not only demonstrates professionalism but also signals to the debtor that you are serious about enforcing your rights. At RMT Legal, we assist creditors with effective and legally compliant demand notices to help recover outstanding debts efficiently.