“Hi, can you please review this seller disclosure form!”

Since the commencement of Queensland’s statutory seller disclosure regime under the Property Law Act 2023 (Qld), we are seeing an increasing practice where real estate agents arrange for third-party search or disclosure providers to prepare the Form 2 Seller Disclosure Statement, and then ask the seller’s solicitor to “review” or “approve” it before the property is marketed.

While this may appear efficient, it creates significant issues for both sellers and their lawyers.

The Form 2 is an important statutory document. It must be given to a buyer, together with prescribed certificates, before the buyer signs the contract. Failure to comply with the statutory disclosure requirements, or inaccuracies in the disclosure material in certain circumstances, may give the buyer termination rights.

Where a solicitor prepares the disclosure package, the solicitor controls the process: obtaining searches, reviewing source documents, considering the statutory requirements and advising the seller about the information being disclosed.

The position is very different where a third-party provider prepares the Form 2 and a solicitor is subsequently asked to “review” it.

A solicitor cannot necessarily verify the accuracy or completeness of a disclosure package merely by reading the completed Form 2. Proper verification may require reviewing the underlying searches, certificates, title information and instructions provided by the seller. A seemingly simple request to “check” the document may therefore expose the solicitor to an expectation that they have independently verified and approved the entire disclosure package.

For sellers, the safest approach is to obtain legal advice before the Form 2 is prepared and issued.

At Evolution Legal, our preference is to control the legal disclosure process from the outset rather than simply place a solicitor’s approval over a document prepared by an unrelated third party.

When it comes to seller disclosure, responsibility and accountability matter.