R
eal estate experts are warning that new mandatory seller laws in Queensland will increase the cost of selling a property by $1,000 or more. The laws, which come into effect on August 1, allow buyers to terminate a contract and claim compensation if the vendor fails to disclose vital information.

    The new laws require vendors to provide a seven-page "seller disclosure statement" as part of the sales bundle of documents. This statement must include information about tree orders, government transport resumption proposals, Queensland Heritage Act implications, and unlicensed building work in the previous six years. The cost of preparing this document can range from $600 to $1,500.

    However, the statement does not require disclosure of natural hazard history, structural soundness, pest infestation, asbestos on site, or the current or historical use of the building. Real Estate Institute of Queensland CEO Antonia Mercorella says the new law will create consistency and bring Queensland in line with other states, but buyers still need to remain vigilant.

    The regime applies to all contracts entered into on or after August 1, regardless of when the property was listed for sale. While it is not mandatory for the buyer to sign the statement, REIQ recommends they do so to confirm receipt.

    Property managers and agents are warning that the new laws will create confusion and headaches in the industry. Brisbane property manager Brett Andreassen says existing contracts already contain 90% of the required information and believes the additional requirements are redundant. He also raises concerns for private sellers who may not be aware of the changes.

    Real estate agent Michael Shean foresees issues for vendors but believes the laws will provide buyers with peace of mind. Lawyers are warning that the document preparation process could slow transactions by up to a week, and the cost could be passed on to clients.

    The new laws also pose challenges for body corporates, which manage the sale of units and townhouses. Strata Community Association general manager Laura Bos estimates that the prescribed fee for data gathering in community title schemes will result in a $3 million headache for Queenslanders over the next 12 months.