Queensland Legal requirements when Selling Home: Complete 2026 guide
Legal Requirements for Selling Your Home in Queensland
See Complete Queensland Private Sale Guide
When selling a property in Queensland, whether through a real estate agent or privately (FSBO), there are three critical legal requirements you must follow. Understanding these obligations protects both you and your buyer throughout the sale process.
1. Seller Disclosure Statement (Form 2)
What is it? The Seller Disclosure Statement, also known as Form 2, is a legally required document that provides prospective buyers with essential information about your property. This form must be given to potential buyers before they sign a contract.
What must be included:
Property details (address, lot/plan numbers, zoning)
Information about building approvals and compliance certificates
Details of any existing disputes or legal issues affecting the property
Information about body corporate (for units/townhouses)
Swimming pool safety compliance certificate (if applicable)
Pest and building inspection reports (recommended but not mandatory)
Disclosure of any known defects or issues with the property
Required Searches: You must attach current certificates and searches, including:
Title Search - Shows who owns the property and any registered encumbrances (mortgages, easements, covenants)
Planning Certificate - Details the property's zoning and any development approvals or restrictions
Building and Plumbing Searches - Confirms approved building work and compliance
Pool Safety Certificate - Mandatory if you have a swimming pool
Body Corporate Records - If applicable, showing levies, bylaws, and financial status
Important Notes:
Searches must be no more than 2 months old at the time of sale
You must update the Form 1 if circumstances change before contracts are signed
Providing false or misleading information can result in legal action and penalties
Buyers have cooling-off rights if they weren't provided with a complete Form 2
For ease of sale AirLister will assist in obtaining to ensure your contract in legally binding
2. Contract of Sale (REIQ Standard Contract)
What is it? Queensland uses the Real Estate Institute of Queensland (REIQ) standardised contract for property sales. This ensures consistency and legal compliance across all property transactions.
Key Contract Components:
Essential Terms:
Purchase price and deposit amount
Settlement date (when ownership transfers)
Special conditions (if any)
Inclusions and exclusions (fixtures, chattels)
Finance clause (if the buyer needs a loan)
Building and pest inspection clause (if applicable)
All Parties Must Have a Copy:
The seller receives a signed copy
The buyer receives a signed copy
The solicitor/conveyancer for each party receives a copy
If using an agent, they retain a copy for their records
Who Can Prepare the Contract? While agents can help facilitate the contract, only a qualified professional should prepare it:
Solicitor - A licensed legal professional
Conveyancer - A licensed property transfer specialist
Licensed Real Estate Agent - Can use standard REIQ forms but cannot provide legal advice
For FSBO Sellers: It's strongly recommended to engage a solicitor or conveyancer to:
Prepare your contract correctly
Ensure all legal requirements are met
Protect your interests throughout the sale
Handle the settlement process
Cost Considerations:
Contract preparation typically costs $300-$500
Seller disclosure forms typically cost $800-$1200
This is a worthwhile investment to avoid costly legal mistakes
Much cheaper than commission fees if selling privately
3. Deposit Handling and Trust Account Requirements
The Critical Rule: A seller CANNOT legally hold the deposit themselves. This is a strict legal requirement designed to protect the buyer's money.
Where Must Deposits Be Held?
Deposits must be held in a statutory trust account by one of the following:
Licensed real estate agent's trust account
Solicitor's trust account
Conveyancer's trust account
Professional trustee company
Why This Matters:
Protects the buyer's deposit from misuse
Ensures funds are available at settlement
Prevents fraud and financial disputes
Compliance with Queensland property law
Standard Deposit Amount: Typically 10% of the purchase price, though this can be negotiated. For example:
Property price: $750,000
Standard deposit: $75,000
For FSBO Sellers - Your Options:
Option 1: Use a Solicitor's Trust Account (Recommended)
Engage a solicitor to handle your sale
They hold the deposit in their trust account
Provides legal oversight and protection
Cost: Usually included in conveyancing fees
Option 2: Use a Licensed Conveyancer
Similar to a solicitor but specialized in property transfers
Holds deposit in their trust account
Often more affordable than solicitors
Cost: Typically $800-$1,200 for the full service
What Happens to the Deposit?
At Settlement (Successful Sale):
Deposit is released to the seller
Forms part of the total purchase price
Buyer pays the balance (usually via bank transfer)
If Sale Falls Through:
Depends on the contract terms and circumstances
If buyer defaults: seller may keep deposit (after legal process)
If seller defaults: deposit returned to buyer plus potential damages
If mutual agreement: deposit returned to buyer
Red Flags - What NOT to Do: ❌ Never ask the buyer to pay the deposit directly to you ❌ Never hold the deposit in your personal bank account ❌ Never accept cash deposits ❌ Never agree to "off the books" deposit arrangements
These practices are illegal and can result in:
Fines up to $13,345 for individuals
Contract being voided
Legal action from the buyer
Criminal charges in serious cases
Additional Legal Considerations for FSBO Sellers
Taxation Obligations:
Capital Gains Tax (CGT) - may apply if not your primary residence
Foreign resident capital gains withholding - if you're selling to foreign buyers
Consult with an accountant before selling
Timeline for Compliance:
Before Marketing: Prepare Form 2 and obtain all required searches
During Negotiation: Provide Form 2 to all interested buyers
When Offer Accepted: Engage solicitor/conveyancer to prepare contract
At Contract Signing: Deposit paid into trust account
Settlement Period: Typically 30-90 days
Settlement Day: Final payment, keys handed over, ownership transfers
Professional Support You'll Need:
Even when selling privately, you should engage:
Solicitor or Conveyancer - Essential for legal compliance ($800-$1,500)
Accountant - For tax advice and CGT calculations ($300-$800)
Building Inspector - Optional but recommended for transparency ($400-$600)
Total Professional Costs for FSBO: Approximately $699 - $1800 (Still significantly less than agent commission of 2-3% + GST which on a $750,000 property would be $15,000-$22,500)
Penalties for Non-Compliance
Failing to meet these legal requirements can result in:
Contract being deemed void or voidable
Buyer having extended cooling-off rights
Legal action and compensation claims
Fines and penalties from regulatory authorities
Sale falling through at the last minute
Damage to your reputation as a seller
See how to sell your property without an agent - Here
see how much you could save on commission - Here
See AirListers Pricing - Here
Disclaimer: This information is general in nature and should not be considered legal advice. Always consult with a qualified solicitor or conveyancer for advice specific to your situation.
Last updated: January 2026
