Real estate professionals in Queensland are expressing apprehension regarding the state’s seller disclosure scheme, which they believe is contributing to a rise in unethical practices such as “gazumping.”
This disclosure initiative was launched in August 2025 with the intent of enhancing transparency in real estate transactions. Attorney-General Deb Frecklington is overseeing the program, taking into account feedback from various industry stakeholders, including the Real Estate Institute of Queensland (REIQ).
According to the REIQ, the current seller disclosure laws are leading to a troubling increase in unethical behavior, particularly the practice of gazumping. Real estate agents report growing dissatisfaction within the industry toward the scheme, which aims to provide clearer information during property transactions.
Sellers are required to submit a disclosure statement, known as Form 2, to interested buyers prior to the signing of any contracts. This statement includes crucial details such as zoning information, land contamination, heritage listings, transport resumption plans, and various rates and charges.
Under the existing regulations, buyers have the right to terminate a contract up until the day of settlement, receive a full refund of their deposit, and even seek compensation if the seller fails to disclose essential information.
Brett Andreassen, a real estate agent in Brisbane, noted that the length of these disclosure statements has increased significantly, with some documents exceeding 100 pages for apartments and up to 250 pages for houses. He remarked, “There are more pages being added through solicitors, and buyers are not thoroughly reviewing them.” He added that important information might be overlooked as buyers tend to skim through the documents.
Previously, disclosures were condensed into a single page for clarity, but this has changed, leading to potential risks for buyers who might miss critical issues such as easements, fees, and defects. “Once the buyer signs the contract, they cannot claim ignorance,” Andreassen cautioned.
Additionally, sellers are incurring costs for extensive searches that buyers’ solicitors often replicate, resulting in unnecessary financial strain for both parties. Andreassen pointed out, “There is a lot of unnecessary duplication occurring.”
Darren Morris, a Queensland-based conveyancer manager, has advised clients to complete the disclosure document independently, suggesting that it adds little value. He handles approximately 20 settlements weekly and has yet to observe significant benefits from the statement for buyers. “It seems the legislation primarily benefits those profiting from providing it,” he stated, emphasizing that the focus should remain on buyer-led searches and due diligence.
The REIQ’s chief executive, Antonia Mercorella, highlighted that the complexity and delays associated with the Form 2 have heightened the risk of gazumping. This unethical practice involves a seller accepting an informal offer but then selling to another buyer before a formal contract is signed. “We have noticed this issue beginning to emerge,” she stated, elaborating that in fast-moving markets, an initial offer may be accepted verbally, but while the Form 2 is being prepared, a better offer might be accepted instead.
Mercorella described this trend as concerning, though not widespread, noting that verbal offers generally lack enforceability unless documented. “While this is not occurring on a large scale, the risk has certainly escalated due to the requirements surrounding the Form 2,” she said. “This was not the intended purpose of the initiative, and it should not be exploited in this manner.”
Mortgage broker Rebecca Jarrett-Dalton expressed that the rise in gazumping is troubling but anticipated, particularly in competitive property markets. She emphasized the distress it can cause, especially for first-time buyers who may be unfamiliar with the legal intricacies. “It’s a challenging environment for them, making the situation even more disheartening,” she noted, advising potential buyers to remain well-informed and to consult their solicitors and brokers throughout the buying process.
Brisbane agent Gabrielle Trickey pointed out ongoing confusion regarding the contents of the disclosure statement, indicating that critical issues such as natural hazard history and asbestos presence are not adequately addressed. She stressed that a property’s flood history should be disclosed, considering its importance in the buying decision. “Buyers should not be left unaware of properties that have experienced flooding,” she remarked.
Both Trickey and Andreassen called for a reevaluation and simplification of the laws, arguing that the current framework overwhelms buyers instead of providing them with clear information. Mercorella confirmed that the REIQ had reached out to Attorney-General Deb Frecklington to express these industry concerns. “The Attorney-General has committed to a review, and we are cautiously optimistic that improvements can be made to both the document and the overall process,” she concluded.
A spokesperson for Attorney-General Frecklington indicated that the government is actively reviewing the seller disclosure scheme.
