How a Property Sale Works in Queensland: The Complete Process from Listing to Settlement

Your seller has just shaken your hand and said yes. From that moment, you are responsible for navigating one of the most legislatively specific sale processes in Australia — one where a missed deadline, an unsigned form, or a disclosure oversight can unravel months of work at any point before the money changes hands. Queensland’s residential sale process has a clear sequence, but it rewards only those who know every step cold.

This article covers the entire transaction lifecycle for a residential sale in Queensland: from the Form 6 listing authority through to the 4pm PEXA deadline on settlement day. It reflects the legislative position as at 1 August 2025, including the new seller disclosure obligations introduced under the Property Law Act 2023 (Qld).

Step 1: The Listing Authority — Form 6

Before you do anything — before you take a photo, write a listing description, or open a property for inspection — you need a valid appointment in place. In Queensland, that appointment is the Form 6, formally titled the Property Occupations Form 6 — Appointment and Reappointment of a Property Agent, Resident Letting Agent or Auctioneer.

In Queensland, the Form 6 is a legally binding contract for the sale, purchase, leasing and/or management of residential property between a real estate agent and their client. It includes the rights and obligations of both parties under the Property Occupations Act 2014 (Qld). Without it, you have no authority to act, and you have no entitlement to commission.

The Form 6 will not be valid unless it meets the requirements set out in section 104 of the Property Occupations Act 2014 (Qld). For a Form 6 to constitute a valid appointment, it must be in the approved form, and the most current version should be used. Agents using an outdated version are not just sloppy — they are exposed.

Under section 19 of the Property Occupations Regulation 2014, a real estate agent must, before listing a property for sale, take reasonable steps to find out or verify ownership of the property they are selling. This means ordering a title search before the Form 6 is completed, not after. You should ensure that the seller’s full legal name appears exactly as per the name registered on the title of the property. The agent should order a title search to confirm these details are correct, as discrepancies may arise where a person’s legal name has changed since they purchased the property.

Exclusive, Sole, and Open Appointments

The Form 6 requires the seller to select the type of appointment. The distinctions matter considerably, and the agent has a legal obligation to explain them before the seller signs.

Under an exclusive agency agreement, the agent has the right to claim the agreed commission for the sale of the property whether or not they are the effective cause of the sale — even if the seller sells the property themselves, or it is sold through another agent. Under a sole agency, you can appoint another real estate agent during the period of sale; however, if the property is sold while more than one agreement is in place, the seller may be liable for double commission and/or damages for breach of contract.

A term can be up to 90 days before a reappointment is required. For sole or exclusive appointments, for appointments of 60 days or more, either party can end the appointment by giving 30 days’ written notice, but the appointment must run for at least 60 days unless both parties agree to an earlier end date.

The Form 6 must be completed and given to the client before the agent performs any service for the client. Failure to do so may result in a penalty and loss of commission for the agent. This is not a technicality. Agents who begin marketing before securing a signed Form 6 have been found unable to recover their commission even where they were undeniably the effective cause of a sale.

Step 2: Seller Disclosure — the Form 2 (From 1 August 2025)

This is the step that fundamentally changed Queensland real estate from 1 August 2025, and it falls before the contract is signed — not after.

From 1 August 2025, the way property is sold in Queensland changed with the introduction of a new statutory seller disclosure regime under the Property Law Act 2023 (Qld). The new regime has been designed to improve transparency and consistency in property transactions, ensuring that buyers receive key information about a property before they sign a contract.

This new regime does away with Queensland’s traditional “buyer beware” premise and imposes on the seller the responsibility to undertake a certain level of due diligence investigations to provide the buyer with information relating to the property before the buyer signs the contract. The shift is significant. Sellers who previously relied on a buyer’s own searches to surface problems now carry affirmative disclosure obligations.

What the Form 2 Must Contain

Under the new laws, a seller must provide a buyer with a completed and signed Form 2 Seller Disclosure Statement and all prescribed certificates relevant to the property before the buyer signs a contract. These documents must be accurate and up to date at the time they are given to the buyer.

The Form 2 must include: a completed disclosure statement, all the prescribed forms, a current title search, a registered survey plan, body corporate documents if applicable (the community management statement and the Body Corporate Certificate), any leases, easements, or notices affecting the property, pool safety documentation, and more.

The statement must be completed using the approved Form 2, which includes six parts covering property title details, encumbrances, zoning, environmental issues, and building approvals. Sellers must also attach relevant certificates, such as council searches or body corporate records.

The disclosure statement must be signed by the seller and can be signed electronically. While it is not mandatory for the buyer to sign the statement, it is best practice for them to do so to confirm receipt.

The Consequences of Getting It Wrong

The stakes on the Form 2 are severe. Failure by the seller to give the Form 2 Seller Disclosure Statement (or an applicable prescribed certificate) creates a right for the buyer to terminate the contract at any time up until settlement. A termination right also arises if there are inaccuracies or omissions in the disclosure about a material matter affecting the property of which the buyer was unaware, and the buyer would not have entered the contract had they been aware of the correct state of affairs.

Miss a document, use the wrong form, or serve it too late, and the buyer can terminate — even after going unconditional. That is the critical point agents must communicate to sellers: the disclosure termination right persists all the way to settlement, even if every other condition has been satisfied.

The seller must give written instructions authorising the agent, and the agent must follow the official Form 2 platform workflow. Real estate agents cannot provide legal advice or interpret search results. Agents risk liability for incorrect or incomplete disclosures.

The practical recommendation for agents: advise your sellers to engage their conveyancer or solicitor to prepare the Form 2 disclosure package before the property is listed, not at the point of offer. Start ordering searches 30 to 45 days before listing. Some certificates expire quickly and can hold up a sale if not current.

What Disclosure Does Not Cover

It is equally important to understand the limits of the regime. Certain matters are still “buyer beware” and not covered by the disclosure regime. Buyers must still conduct their own due diligence on flooding information (via FloodCheck Queensland) and structural soundness — the seller does not warrant building integrity through the disclosure statement.

While the regime enhances consumer protection by providing a consistent foundation of information, buyers should understand that the disclosure statement may not cover everything they wish to know about a property. The “buyer beware” principle still applies in Queensland. Buyers should continue to conduct their own independent inquiries and seek legal and other relevant professional advice.

Step 3: Preparing and Presenting the REIQ Contract

Once the Form 2 disclosure package is ready and the property has been marketed, an offer will come. In Queensland, that offer almost always takes the form of the REIQ Contract for Houses and Residential Land (or the Community Title Schemes contract for units and townhouses). This document, prepared jointly by the Real Estate Institute of Queensland and the Queensland Law Society, is the standard instrument for residential conveyancing across the state.

The REIQ contract is the standard contract used for residential property sales across the state, prepared by the Real Estate Institute of Queensland and the Queensland Law Society. The contract covers who’s buying, who’s selling, the price, when settlement occurs, and what conditions must be met along the way. Most of it is pre-written, which means the same rules apply to nearly every transaction.

The contract has two components: the Reference Schedule and the Standard Terms. The Reference Schedule is where all the deal-specific information lives — the parties’ names, the purchase price, the deposit amount, the settlement date, the finance details, the inspection date, and the list of inclusions and exclusions. The Standard Terms are the pre-printed legal conditions that govern how the contract operates.

Getting the Details Right

The two most important items in a standard REIQ contract are the parties’ full and correct legal names, and the cooling-off period. A requirement is that you show your full and correct name — the same name as on your birth certificate or driver’s licence. For example, if your name is Anthony Alexander-Smith, you cannot use Tony Smith. It is very important to include your full name, including middle names and hyphens.

The same applies to sellers. A name discrepancy between the contract and the title register will cause problems at settlement, sometimes fatal ones.

Fixtures that are to be excluded from the sale must be specified in the relevant section of the Reference Schedule. Chattels included in the sale need to be listed. If the property is sold subject to a tenancy, ensure all relevant details are completed in the Reference Schedule. If this is left blank, the buyer will be entitled to vacant possession on the day of settlement.

Risk Passes Earlier Than You Think

One clause that regularly surprises buyers — and agents who haven’t read the contract carefully — is the risk clause. Clause 8.1 concerns buyer’s risk and insurance. The property is at the buyer’s risk from 5:00pm on the first business day after the contract date. Buyers should ensure they take out a cover note for insurance immediately upon signing the contract. This means the buyer carries the risk of damage from fire, flood, or storm before they even own the property. Agents should flag this at the time of signing — not two weeks later.

Signing and Dating

Both parties must sign and date the contract. In Queensland, the contract is formed when the last party to sign communicates their acceptance to the other party. Where an agent counters an offer, the sequence of signatures matters — the contract date flows from when the fully executed contract is delivered, not when either party individually signed.

Date fields must be completed accurately. A missing or incorrect contract date creates ambiguity around the cooling-off period, the finance date, the building and pest inspection date, and the settlement date — all of which are calculated from the contract date.

Step 4: The Cooling-Off Period — 5 Business Days

In Queensland, the standard REIQ contract used for buying a residential property allows for a cooling-off period of 5 business days. This means that if you sign a contract but no longer want to proceed with the purchase, you can cancel the contract during the cooling-off period.

The cooling-off period begins the day the buyer (or their solicitor) receives a copy of the fully executed contract, and ordinarily lasts five business days, ending at 5pm on the final day. Critically, it is 5 business days including the date of receipt — not 5 business days from the date of receipt.

The deadline is precise and non-negotiable: the cooling-off period expires at 5:00pm on the fifth business day. It is not midnight. Missing this cut-off means the buyer loses their right to terminate under these provisions, and the contract becomes fully binding on their part, subject only to other conditions like finance or building and pest inspections.

The Termination Penalty

The cooling-off period is not a free exit. If the buyer terminates during the cooling-off period, the seller is legally entitled to keep a termination penalty of 0.25% of the purchase price from the deposit paid. On a $1 million purchase, that is a $2,500 forfeiture. Contract conditions, on the other hand, are specific hurdles that must be cleared for the sale to proceed. If a buyer lawfully terminates because a condition is not met — for example, their finance application is denied or the building report is unsatisfactory — they are typically entitled to a full refund of the deposit without penalty.

When the Cooling-Off Period Doesn’t Apply

The cooling-off period is a buyer protection that does not apply in every circumstance. Transactions exempt from the cooling-off period include: a sale that has taken place after an unsuccessful auction (before 5:00pm on the second business day) if the buyer was an initial registered bidder; and where the buyer is a publicly listed corporation (or their subsidiary), is the State or a statutory body, or is buying at least three lots at the same time.

The buyer may also waive or shorten the cooling-off period in writing. A buyer may want to waive the cooling-off period to make their offer more competitive in a situation where there are a number of other buyers looking to purchase the same property. A waiver may give the seller a higher level of certainty that the buyer is committed to the purchase.

Step 5: The Finance Condition

For most buyers, the contract will be conditional on finance. To identify if your contract is subject to finance, check for the finance section in the contract. Typically in Queensland’s standard REIQ contracts, this section is in clause 3.

If the buyer is purchasing subject to obtaining finance, all three components of the finance clause must be completed. For the clause to be legally valid and enforceable, you need to state an actual amount, the name of the financier, and a date or period for obtaining finance. A finance clause that omits any one of these three elements may be unenforceable, leaving the buyer without a valid exit if their loan is declined.

The finance section of the contract should specify a deadline for meeting the financial requirement, usually within 14 or 21 days after all parties sign the contract. The precise date — not just the number of days — should be inserted in the Reference Schedule, because “time is of the essence” in this contract.

The buyer must take all reasonable steps to obtain approval as per the contract. Failure to do so may not give the buyer grounds to terminate the contract. This clause is intended to prevent buyers from terminating the contract for reasons other than finance, such as a change of mind. Buyers who have not genuinely pursued their finance and then attempt to terminate under the finance clause are in precarious territory. Sellers facing such a termination should seek legal advice promptly.

If the buyer cannot secure finance approval by the finance condition due date, they can terminate the contract and receive their full deposit back — provided the clause is valid and they have genuinely attempted to obtain finance.

Step 6: The Building and Pest Condition

Clause 4.1 of the REIQ contract states that the contract is subject to the buyer obtaining a written building report and a written pest report, or a combined report from a qualified building and pest inspector on the property by the inspection date, on terms that are satisfactory to the buyer. Clause 4 will only become active if the inspection date is completed in the Reference Schedule.

This last point catches agents more often than any other. If the inspection date field is left blank in the Reference Schedule, there is no building and pest condition — the buyer has no contractual right to terminate on the basis of the report, regardless of what it reveals. The buyer is responsible for taking all reasonable steps to obtain the necessary reports but has the option to elect to obtain only one of the reports.

The building and pest condition is highly subjective — the report only needs to be satisfactory “to the buyer.” That said, a buyer terminating purely on a pretext (where the report reveals only minor issues they had reason to expect) risks scrutiny, particularly in a multiple-offer situation. Agents observing patterns of termination at building and pest stage should ensure sellers document the condition of the property thoroughly before the contract is signed, including the Form 2 disclosure documentation.

The inspection date and the finance date are both subject to the “time is of the essence” principle under clause 6.1. The REIQ contract includes a clause that says “time is of the essence” — meaning deadlines are strict. If you miss your finance or inspection date, you could lose your rights under that condition, or the other party might be able to terminate the contract.

Step 7: Going Unconditional

When all conditions are satisfied — or waived — the contract goes unconditional. This is the moment both parties are irrevocably committed to the transaction. The buyer cannot now exit without breaching the contract. The seller cannot now accept a higher offer without doing the same.

Agents should note that “going unconditional” is not a single notification from one party. It requires positive satisfaction of each condition. For the finance condition, this means written confirmation from the financier, not merely a verbal assurance. For building and pest, it means the buyer either advises in writing that the report is satisfactory or simply allows the inspection date to pass without terminating — in which case the condition is deemed satisfied.

Some conditions are waived by inaction; others require affirmative notice. Understand the distinction for every condition in the contract. Agents should also advise sellers that going unconditional is the trigger for the buyer to pay any further deposit instalment specified in the contract.

The point of going unconditional is also a natural moment to confirm settlement logistics: settlement date, how both parties will be attending to settlement, and whether any special conditions (repairs, chattels, early access) require specific follow-up before settlement day.

Step 8: Between Unconditional and Settlement

The period between going unconditional and settlement is deceptively busy. Both sides are preparing their legal, financial, and practical arrangements for the transfer of the property.

On the seller’s side: the seller’s solicitor or conveyancer prepares the Transfer document and coordinates the discharge of any existing mortgage. The seller must ensure the property is kept in substantially the same condition as at the contract date. If a rental property, the property manager must be notified and tenancy-related obligations (bond, rent adjustments, RTA compliance) must be attended to.

On the buyer’s side: the buyer’s solicitor orders title searches to confirm no new encumbrances have appeared on the title since contract. The buyer’s bank prepares loan documentation and arranges to participate in the PEXA workspace. Transfer duty must be calculated and prepared for payment to the Queensland Revenue Office on settlement.

For agents, this period is when deals that appeared settled can still collapse — through a caveat being lodged on the title, a seller’s mortgage lender failing to release in time, or a tenant failing to vacate. In Queensland, the settlement date is an essential term of the contract, and time is of the essence. This means you must be in a position to settle. If you are not, then this will give the other party, among other things, the right to terminate the contract, potentially retain the deposit, or sue for any damages or losses incurred.

Step 9: The Pre-Settlement Inspection

The buyer’s right to a final inspection of the property before settlement is contained in clause 8.2 of the standard REIQ contract. The buyer usually has the right to conduct a final inspection of the property in the days leading up to settlement. This is to ensure the property is in the same condition as when the contract was signed, allowing for fair wear and tear, and that any special conditions (like repairs) have been met.

Do a pre-settlement inspection two to three days before settlement to check for damage, confirm repairs, and ensure nothing is missing. It is strongly recommended that buyers undertake a final pre-settlement inspection on the morning of settlement to ensure the condition of the property is the same as when they signed the contract, and that any special conditions under the contract have been attended to.

Problems discovered during the final inspection, such as damage, incomplete repairs, or vacant possession issues (an existing tenant has not vacated before settlement), may justify delaying settlement depending on the terms of the contract. If the seller has caused unreasonable damage between contract and settlement, settlement may need to be postponed until the issue is resolved.

Agents managing the sale should coordinate the pre-settlement inspection carefully. A seller who has removed inclusions specified in the contract, or who has left the property in a substantially worse condition than at signing, creates a legitimate dispute point that can delay settlement. Flag this risk to your sellers well before they start packing.

The property must be vacant and clear of all belongings not included in the sale unless the contract specifically provides otherwise. Sellers who leave behind items not listed as inclusions — and equally, sellers who remove items that were listed as inclusions — are in breach of contract.

Step 10: Settlement Day via PEXA

Settlement in Queensland is overwhelmingly conducted electronically through PEXA (Property Exchange Australia). Paper settlements are rare and will become rarer. For practical purposes, every agent in Queensland should understand how PEXA works and what can go wrong on settlement day.

With PEXA, the electronic settlement system, all parties — the buyer’s lawyers, the seller’s lawyers, the buyer’s bank and the seller’s bank — all have to sign off on the workspace stating they are “ready” to settle. Once all parties are “ready,” settlement can go through.

In the event that all parties have not signed off by the agreed time, the settlement automatically rolls over in 30-minute windows. For example, if a 12pm settlement is missed, the new time by default is 12:30pm, then 1:00pm, 1:30pm, and so on. This continues until 4pm. In Queensland, 4pm is the last time frame in which a property can settle electronically. Even if the parties mutually agree to settle beyond 4pm, it’s not logistically possible in the system. So 4pm is the hard deadline.

Agents need to understand this 4pm cut-off intimately. If settlement does not occur by 4pm, the transaction has failed to settle on the nominated date. The consequences depend on which party is in default and the terms of the contract — but they can include penalty interest, a formal notice to complete, and ultimately, the non-defaulting party’s right to terminate and seek damages. Do not allow your sellers or buyers to be cavalier about the timing on settlement day.

The PEXA platform talks directly to Queensland Titles, and the title transfer happens as part of the settlement process itself. As part of the PEXA settlement process, the title will transfer from the vendor to the purchaser. The local council and the water utility company will be notified of the new purchaser’s details directly, meaning that future bills will be sent to the new owner.

After Settlement Confirms

After settlement is confirmed, the buyer’s legal team lodges the transfer documents with Titles Queensland to register the change of ownership. The real estate agent is notified to release the keys to the buyer.

Keys are held by the agent until settlement is confirmed. The agent releases keys — not before. This is a firm protocol and deviating from it, even at a seller’s request, creates real exposure if settlement subsequently does not proceed as expected. Once the PEXA workspace confirms settlement has completed, the agent can release keys and the buyer takes possession.

Sellers always want to know how quickly their money will land in their account. Usually within four business hours — so same day — though in some instances, it can be up to three business days.

Commission is payable upon settlement. The agent’s right to commission is established by the Form 6, confirmed by the sale of the property, and paid from the proceeds at settlement. In Queensland, commission is typically paid by the seller’s solicitor from the settlement proceeds in accordance with the directions established in the trust account process.

Common Points of Failure — and How to Pre-empt Them

Every experienced Queensland agent has a mental list of the moments where transactions collapse. Here are the most common, mapped against the step in the process where they originate.

Form 6 errors — An incomplete Form 6, wrong agency type, missing signatures, or an outdated form version can strip an agent of their commission entitlement even after a successful sale. Use the current Realworks version, execute it before any service is performed, and verify the seller’s identity against the title.

Form 2 disclosure problems — We are still seeing Form 2s with missing or incorrect information, and these mistakes are costing sellers their sales. The most common errors are missing prescribed certificates, outdated documents, and body corporate information that has changed since it was ordered. Start the disclosure process before listing, not after an offer is received.

Wrong names on the contract — A buyer’s or seller’s name that doesn’t match their legal identity creates issues when the transfer documents are prepared and lodged with Titles Queensland. Verify both parties’ names against government-issued ID or the title register at the point of preparing the contract.

Blank fields in the Reference Schedule — A blank inspection date means no building and pest condition. A blank finance section means no finance condition. A blank settlement date means… significant ambiguity. Every field in the Reference Schedule must be deliberately and correctly completed.

Missing the cooling-off deadline — The cooling-off period is 5 business days including the date of receipt — not 5 business days from the date of receipt. Agents who miscalculate this date and advise buyers incorrectly have created professional liability issues for themselves.

“Time is of the essence” breaches — The finance date, building and pest date, and settlement date are all subject to strict time-is-of-the-essence provisions under the REIQ contract. Missing any of them without prior agreement from the other side can constitute a breach.

Pre-settlement inspection surprises — A seller who has removed inclusions or damaged the property between signing and settlement will face a delayed settlement at best, and a breach of contract claim at worst. Walk your sellers through their obligations in the period between going unconditional and settlement day.

Settlement day delays — Common PEXA settlement delays include either party not being ready, the incoming mortgagee not having funds ready, or a caveat being placed on the property to prevent settlement. None of these are inevitable. A well-coordinated transaction, where the agents stay in contact with both sets of solicitors in the week before settlement, will almost always settle on time.

What This Means for Queensland Agents

Understanding how a property sale works in Queensland is not a knowledge exercise — it is the operational foundation of your practice. Every missed deadline, every incomplete form, and every seller not properly prepared for their obligations is a potential claim, a potential complaint, and a potential lost commission.

The introduction of the Form 2 seller disclosure regime from 1 August 2025 has added a significant pre-contract obligation that agents must now build into every listing workflow. Start the disclosure process before the property goes live, not when the offer comes in. Advise your sellers to engage a solicitor or conveyancer for the Form 2 preparation — this is not an agent’s document to draft.

Understand the sequence. The Form 6 comes before any marketing. The Form 2 disclosure comes before the buyer signs any contract. The cooling-off period runs from receipt of the fully executed contract and expires at 5pm on the fifth business day. Finance and building and pest conditions must be recorded in the Reference Schedule with specific dates or they may not exist. Going unconditional is the point of no return for both parties. The pre-settlement inspection must occur before settlement, not on the morning of. And settlement must complete by 4pm Queensland time through PEXA — or it doesn’t complete that day at all.

The agents who manage this process cleanly, communicate clearly with both parties, and front-load their due diligence close fewer files with complications and build the kind of reputation that generates repeat business. The sequence is not complicated. Knowing it thoroughly, and managing it without shortcuts, is what separates strong operators from those who only narrowly avoid problems.