The recent commencement of the Property Law Act 2023 (Qld) on 1 August 2025 introduced new disclosure obligations for property sellers. These changes sparked considerable discussion and apprehension within the industry, particularly regarding the practical challenges Bodies Corporate and, by extension, Body Corporate Managers may encounter in complying with the new requirements. We have written previously regarding these reforms and are fully supportive of the need to enhance transparency and ensure that purchasers are well informed before committing to a property transaction.  

Now that several weeks have passed since the introduction of the new certificates, it is clear that the challenges involved in their preparation are both real and significant.

Taking a step back, what is different?

With some limited exceptions, a seller of a property in Queensland is required to provide a purchaser with a seller disclosure statement, as well as other prescribed certificates applicable to the property, before a contract for the sale of a lot is signed. With limited exceptions, the seller of a property in Queensland will be required to give a buyer a seller disclosure statement, as well as other prescribed certificates applicable to the property, before a contract for the sale of a lot is signed by the buyer.  The prescribed certificates for a lot in a CTS include the CMS, and a BCC.

The new requirements replace the previous requirement for the seller of a lot within a Body Corporate to disclose certain information under section 206 of the Body Corporate and Community Management Act 1997 (BCCMA). It also replaces the existing body corporate information certificate that buyers could obtain from a body corporate under section 205 of the BCCMA.  A new Seller disclosure statement (form 2) has been created under the Property Law Act 2023. The statement gives details of the lot being sold, including titling information such as the address and plan description. Significantly, part 6 of the Seller disclosure statement alerts buyers to the fact the lot they are buying is part of a Body Corporate.  A seller must also provide a copy of the full, and current CMS to a buyer. This is particularly relevant as, without checking the records with the Titles office, it is not always apparent that the CMS held on file by the Body Corporate is the same version registered with Titles.

A seller must also provide a buyer with the BCC obtained from the body corporate. The BCC contains general information about owning a lot in a Body Corporate, as well as specific information about the scheme and the lot being purchased, including but not limited to administrative and sinking fund contributions, insurance policy information, sinking fund balances, details of any Caretaking and Letting Contracts that the Body Corporate may be party to, details of exclusive use areas and improvements to the Common Property that the purchaser may be responsible for. If the seller is unable to obtain a BCC from the body corporate, for example, because the records aren’t held on file or the records are in disarray, the seller must provide an explanatory statement advising why the certificate cannot be given. The body corporate must provide a BCC for a lot within five business days of receiving a request accompanied by payment of the applicable fee. If the BCC is required more urgently, the applicant may pay an additional urgency fee to obtain the BCC sooner.

Why is this important?

Whereas previously the onus was on the seller to meet the disclosure obligations and for the purchaser to make their own enquiries, with the changes a Body Corporate now has a statutory obligation to provide all necessary documentation and to sign off on the completeness and accuracy of the required documentation within the required timeframe. It is important to emphasise that it is the Body Corporate who must complete the Certificate and the only requirement for the lot owner is to provide the document to the seller before the contract is signed. Failure to do so may allow the purchaser to terminate the sale.

It is important that all Bodies Corporate understand the implications of these new requirements. The prescribed fee that has been set for the BCC unfortunately is not sufficient to cover the time required to produce each certificate. Along with increased liability to the Body Corporate, this will likely also result in the Body Corporate bearing a portion of the associated costs due to the increased work required to generate each certificate along with the significant time required for the initial setup. There is also a strong likelihood that Bodies Corporate will expect the preparation of these certificates to fall within the responsibilities of their appointed Body Corporate Manager.

Hartley’s is currently preparing these certificates on behalf of our valued clients, charging only a modest fee to the Body Corporate. However, we join the broader industry, led by the strong advocacy of Strata Community Association QLD in calling on the Government to review the prescribed fee to more accurately reflect the time and effort involved in compiling the new certificates.  

If you have any questions about these changes or how Hartley’s is assisting your Body Corporate in meeting the new requirements, please don’t hesitate to contact our office.