Understanding Statutory Warranties For Units And Townhouses In Queensland
- 7 hours ago
- 4 min read
When buying or selling a unit or townhouse in Queensland, statutory warranties play a critical role in the contract of sale. Under the updated REIQ Contract for the Sale and Purchase of Residential Real Estate (released August 2025), sellers must now give specific statutory warranties when the property is part of a body corporate.
These warranties relate to the condition, liabilities, and governance of the body corporate and are legally binding promises made by the seller under Queensland legislation. Getting them wrong can expose sellers, and in some cases agents, to termination rights and compensation claims.
These warranties are separate from the Seller Disclosure Statement (Form 2) provided before signing. They cannot be avoided by referring the buyer to disclosure documents or body corporate records. If the warranty section is incomplete or inaccurate, the consequences can be serious.
In This Article:
What Are Statutory Warranties?
A statutory warranty is a legal promise imposed by legislation. In the context of unit and townhouse sales in Queensland, statutory warranties require the seller to confirm certain matters about the body corporate and common property.
Unlike general representations or disclosures, statutory warranties:
are automatically given when the contract is signed
exist even if the seller is unaware of the issue
give buyers clear legal remedies if they are incorrect
Where Are These Warranties Found?
Under the current REIQ Contract, statutory warranties for body corporate properties appear on page five of the contract.
Previously, much of this information was contained in a Body Corporate Disclosure Statement and was often completed by the body corporate manager. Under the new regime, those warranties have been moved into the contract itself.
As contracts are typically prepared by real estate agents, this change places greater importance on accurate information being gathered early, and proper collaboration between sellers, agents, and conveyancers.
What Must The Seller Warrant?
For units and townhouses, the seller gives statutory warranties about the body corporate, including the following matters.
Defects In Common Property Or Body Corporate Assets
The seller warrants that there are no latent or patent defects in the common property or body corporate assets that they are aware of or that are disclosed in the body corporate records, other than fair wear and tear.
Latent defects are hidden issues, such as structural defects or waterproofing failures. Patent defects are obvious and observable issues.
Unexpected Body Corporate Liabilities
The seller warrants there are no actual, contingent or expected liabilities of the body corporate (beyond normal operating expenses) that they are aware of or that appear in the body corporate records.
This may include liabilities such as routine repainting every 10 years is expected, or a special levy for major rectification works may not be.
Proposed Changes To The Community Management Statement
The seller must disclose if there is a proposal to record a new Community Management Statement (CMS), including proposed changes to by-laws or lot entitlements.
Unapproved Improvements on Common Property
The seller warrants there are no unapproved improvements on common property that benefit their lot, such as an unauthorised shed or an awning or structure built without approval
Outstanding By-Law Contravention Notices
If the seller has received a by-law contravention notice from the body corporate that has not been remedied, this must be disclosed.
Proposed Body Corporate Resolutions
If the seller has received notice of a forthcoming body corporate meeting with proposed resolutions, they must disclose the meeting date, and provide a copy of the meeting notice.
Why Accuracy Is Critical
Statutory warranties cannot be avoided by saying “refer to the disclosure statement” or leaving the section blank.
If the seller leaves the warranty section incomplete, or fails to disclose a relevant issue, the law treats this as a warranty that nothing exists that needs to be disclosed.
If a warranty is incorrect, the buyer may terminate the contract before settlement, or if discovered after settlement, the buyer may be entitled to claim damages.
How To Correctly Complete The Statutory Warranty Section
This section of the contract should never be left blank.
If There Is Nothing To Disclose
Write “Nil” in each relevant section of the statutory warranties table.
If There Is Something To Disclose
Clearly describe the issue in the space provided. If more detail is required, attach a separate annexure and reference it in the contract.
If The Seller Is Unsure
If the seller does not have sufficient knowledge to answer the warranty questions accurately, a search of the body corporate records should be conducted before completing the contract.
When in doubt, disclose. Early and full disclosure significantly reduces the risk of disputes later.
Key Takeaways for Sellers, Agents And Buyers
Understanding the practical consequences of statutory warranties is essential, as mistakes or assumptions can expose sellers and agents to significant legal risk.
Statutory warranties are not dealt with in the Seller Disclosure Statement
Sellers cannot rely on disclosure documents to satisfy statutory warranties
Incorrect or missing warranties can give buyers termination and damages rights
Sellers should gather accurate body corporate information early
Collaboration between sellers, agents and conveyancers is essential
Need Help With Statutory Warranties?
Because statutory warranties are now embedded directly into the contract itself, accuracy is more important than ever.
We assist sellers, buyers and agents by reviewing contracts before they are signed, arranging body corporate record searches where information is unclear, and ensuring statutory warranty sections are completed correctly. Taking these steps early helps protect both sellers and agents from unnecessary risk and reduces the likelihood of disputes later.
If you are selling, buying or preparing a contract for a unit or townhouse in Queensland, our experienced property team can guide you through the process with clarity and confidence. Contact RHC Solicitors today to discuss your matter and ensure your contract is properly prepared before it is signed.
Disclaimer: This publication is not intended to be comprehensive, nor does it constitute legal advice. We are unable to ensure the information is current and there is no guarantee in relation to accuracy. You should seek legal or other professional advice before acting or relying on any of the content of this publication. The views and/or opinions expressed in this publication is that of the author and may not necessarily represent the views and/or opinions of RHC Solicitors.
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