Bidding at an auction: Tips and Tricks for Queensland Farmers - Part 2
In our last article we explored the fundamentals of buying rural property at auction. This month, we continue with practical guidance for Queensland farmers preparing to bid — with a focus on the legal disclosures sellers must now provide and what they mean for you.
With the introduction of the Property Law Act 2023, significant changes have been made to property sales across Queensland. If you are considering bidding at auction, understanding these requirements is essential.
The Seller’s Disclosure Statement
Under the new legislation, sellers must provide buyers with a Seller’s Disclosure Statement, known as Form 2, issued by the Queensland Government.
This statement is designed to ensure buyers receive important information about the property before entering into a contract. At auction, where contracts are unconditional once the hammer falls, reviewing this material beforehand is critical.
Title Search – Why It Matters
A current Title Search must now be included with the Disclosure Statement. This document sets out the registered interests affecting the property and can reveal issues that directly impact farming operations.
Matters commonly disclosed include:
Easements (such as rights of way across the land)
Covenants (for example, obligations tying the property to another lot)
Registered mortgages
Registered leases
Vegetation notices restricting clearing
An easement running through productive land can affect fencing, cropping, irrigation layouts or stock movement. Vegetation restrictions may limit future development or expansion plans. Reviewing the Title Search carefully — and seeking advice if needed — is a crucial step before auction day.
Plan of Survey – Understanding Boundaries
Sellers must also provide a copy of the registered Plan of Survey.
While modern plans are generally clear, some Queensland farmland was surveyed over a century ago. Older survey plans can be difficult to interpret, and boundaries on paper do not always match existing fences on the ground.
Uncertainty about boundaries can create disputes or unexpected costs. If anything appears unclear — particularly regarding access points, boundary lines or lot dimensions — further clarification should be obtained before bidding.
Unregistered Leases and Agreements
Not all property interests appear on title. Sellers are required to disclose:
Unregistered leases, including their term, rent, bond and any renewal options.
Unregistered encumbrances or oral agreements, such as:
o A neighbour’s right to access their property through the land.
o Shared bore arrangements or water rights.
Informal arrangements are common in rural communities. Understanding exactly what rights others may have over the property is essential before committing to purchase.
Statutory Encumbrances and Services
The Disclosure Statement must also identify statutory encumbrances, which can include infrastructure and services running through the property — such as water, electricity, telecommunications, sewerage or drainage lines.
These can restrict building locations or land use. A separate “Dial Before You Dig” search can further confirm the presence and location of underground services.
Additional Required Disclosures
Sellers must also disclose:
Any residential tenancy agreements in place.
The property’s zoning.
Any proposed transport resumptions or acquisitions.
Whether the property is listed on the Environmental Management Register or Contaminated Land Register.
Any contamination notices, clean-up notices or site investigation requirements.
Neighbourhood disputes involving dividing fences or trees.
Unlicensed building work under an owner-builder permit.
Unsatisfied show cause or enforcement notices under the Building Act.
Current rates and water charges.
Each of these matters may affect future use, compliance obligations or operating costs.
What the Disclosure Statement Does Not Cover
Importantly, the Seller’s Disclosure Statement does not provide a complete picture. Buyers must still undertake their own due diligence.
It does not cover:
Flood history (check local council flood mapping).
Structural soundness or pest infestation (a building and pest inspection is essential).
Past building or development approvals (a Building Records Search should confirm improvements are approved).
Services connected to the property (conduct a Dial Before You Dig search).
Asbestos (buildings constructed prior to 1990 may contain asbestos materials).
Many rural properties include older sheds, homesteads or infrastructure that have evolved over decades. Independent inspections remain critical to avoid inheriting safety or compliance issues.
Buyer’s Rights if Information is Not Correctly Disclosed
In a lot of cases, if the Disclosure Statement is not complete or is inaccurate, it will only provide a Buyer with a right to terminate the contract prior to settlement. It is therefore essential to do your own due diligence enquiries and find out as much as you can about the property prior to Auction Day.
Conclusion
Understanding what is disclosed — and what is not — can help you avoid costly surprises after settlement.
In our next issue, we will continue with further practical tips for preparing for and attending property auctions.
This article provides general information only. For advice tailored to your specific circumstances, please seek independent legal guidance.