Seller Disclosure: Navigating delays and innovative solutions

The introduction of mandatory seller disclosure under the Property Law Act 2023 is reshaping property transactions in Queensland. While the reform promotes transparency and consumer confidence, it has also introduced new challenges, particularly the risk of delays in the timeline of a real estate transaction.

There are various impacts of these changes but also practical strategies, including the potential role of title insurance, which may help to keep transactions moving.

Seller Disclosures Impact

Since the commencement of the new disclosure regime on 1 August 2025, sellers must provide buyers with a prescribed disclosure statement and supporting certificates before contract execution.

While this framework enhances clarity, we have heard anecdotally that solicitors may be experiencing delays in completing searches with some Queensland councils. Such delays can impact the timely completion of the transaction, especially where searches need updating or are corrected late in the process.

Why delays occur:

• The timeline of sellers and their advisors are often stretched due to the difficulty in collating accurate certificates in a timely manner.
• When buyers are required to undertake their own searches to satisfy due diligence the cost and timelines can become prohibitive.

Title Insurance as a solution

To counter these delays, lawyers acting for purchasers can use title insurance from First Title as a risk management tool. Instead of repeating searches already provided under seller disclosure, title insurance offers a cost-effective way to protect against unknown or undisclosed risks to the buyer.

The average cost of a title insurance policy can often be less than the cost of repeated searches, which creates a positive benefit for the buyer who receives the added benefit of not only protection for errors in many of the items in the Form 2, but also coverage for other risks.

Title insurance may provide risk protection cover in 14 of the 17 required seller disclosure items.

Benefits of title insurance:

• Protection against loss for unknown risks such as illegal structures, boundary issues, survey errors, errors to the adjustment of outgoings and fraud.
• Reduces reliance on time-consuming repeat searches.
• Provides peace of mind for buyers and efficiency for lawyers.

All coverage is subject to the terms and conditions of the policy, which is available on the First Title website.

First Title’s Integration with InfoTrack platforms

The integration of title insurance providers with leading practice management platforms is accelerating adoption. First Title, for example, has partnered with the various InfoTrack practice management systems, enabling lawyers to apply for policies seamlessly within their existing workflow.

What this means for lawyers in Queensland using InfoTrack platforms:

• No need to leave the practice management system environment to initiate title insurance applications for your client.
• Faster turnaround and reduced administrative burden.
• Enhanced compliance and record-keeping through automated processes.

These innovations come at a time when Queensland’s property market remains robust, with strong demand and rising prices across metropolitan and regional areas. In a competitive environment, delays can jeopardise deals.

Finding efficient strategies like utilising title insurance is more valuable than ever and protects legal errors or omissions.

What can lawyers do to benefit their clients and their firm.

1. Plan Early: Encourage sellers to prepare disclosure documents well before listing where possible.
2. Consider Title Insurance from First Title: Use title insurance strategically to mitigate delays and protect clients.
3. Leverage Technology: Stay within your practice management system when ordering title insurance.
4. Educate Clients: Explain the benefits of disclosure compliance and insurance options upfront.

Seller disclosure has brought a new era of transparency in Queensland property law, but it also demands agility from lawyers and the industry as a whole.

Lawyers in Queensland are able to purchase title insurance without registering, provided they do not receive any payment from First Title when ordering the policy for their client.

Please contact First Title today to find out more.