Queensland Lot Owners Forced to Subsidise Private Property Sales Under New Disclosure Regime

FOR IMMEDIATE RELEASE

Queensland Lot Owners Forced to Subsidise Private Property Sales Under New Disclosure Regime

The Queensland Government’s new seller disclosure regime is set to unfairly burden bodies corporate across the state, with a prescribed fee that falls dramatically short of the real cost of compliance, shifting the cost of private property transactions onto those not even involved in the sale.

Strata Community Association (Qld) ("SCAQ") has slammed the Government’s decision to set the fee for the new mandatory Body Corporate Certificate at $84.10, even though the true cost of producing the document is estimated at $220 or more.

“This is not just a case of under-pricing,” said Laura Bos, General Manager of SCAQ.

“This is cost-shifting. Bodies corporate and their managers are now being asked to subsidise private property sales transactions they are not party to and receive no benefit from. It’s inequitable, unreasonable, and it undermines the intent of consumer protection.”

The new Certificate, which becomes mandatory from 1 August 2025, is designed to provide buyers with detailed information about a body corporate scheme but the scope and legal weight of the document far exceeds the existing Information Certificate it replaces.

“This is a brand-new document. It contains at least twice the data, carries legal liability for the producer, and must be prepared with care and accuracy. To suggest it can be delivered for $84.10 is not only out of touch, but also irresponsible,” Ms Bos said.

SCAQ warns that the practical consequences of this pricing failure are severe and imminent:

"We could see situations where body corporate managers may decline to produce the certificate altogether, leading to inconsistent, ad hoc processes that disrupt conveyancing and compromise consumer protections." said Ms Bos.

"The reality is the cost gap will most likely be passed onto bodies corporate, creating new disputes and financial strain on unit owners who have nothing to do with the property being sold."

SCAQ believes the prescribed fee diminishes the role of the certificate in protecting consumers. 

“This is not a fee that raises revenue for government, it’s not a tax. But the signal it sends is that professional services can be delivered below cost, with no regard for quality, care, or consequence. That’s a dangerous precedent.”

"There are few options for body corporate managers with this certificate - on charge all lot owners in a scheme or refuse to produce it. None of these are conducive to a flourishing property sector. "

SCAQ is calling on the Queensland Government to urgently reconsider the prescribed fee before 1 August and instead adopt a pricing model that reflects the true cost and complexity of delivering this vital consumer protection.

“Strata managers have supported the reform in principle. We want buyers to have better information. But that reform cannot come at the expense of bodies corporate who are being dragged in to fund private property sales. That is not reform, it’s a cost dump,” said Ms Bos.