How to create a Queensland S206 Disclosure Statement
Before you can sell your lot, you will need to create a Section 206 Disclosure Statement. This statement, signed by the seller (or the seller’s agent), informs a potential buyer about relevant Body Corporate matters and specifically about any unique matters pertinent to your lot.
There is no ‘approved form’ for completing a Section 206 disclosure statement. Real Estate agents and Body Corporate Managers have created individual templates based on the requirements stated in the Body Corporate Act Section 206.
Who creates the form?
Any person, including the Seller, is permitted to create the Section 206 disclosure statement. However, you may need access to Body Corporate records to enable all relevant information to be obtained. Body Corporate Managers will often provide an owner with a S206 statement for a fee. Professional search agents can be engaged to generate a disclosure statement. An inadequate disclosure statement can be a trigger for a buyer to cancel a contract.
Recent changes to the Act
In mid 2012, the Government amended the Act. There is no longer a requirement to attach the Community Management Statement (CMS) of the Body Corporate to the Disclosure Statement.
Relationship to BCCM Information Certificate
A BCCM Information Certificate can only be issued by an approved person associated with the Body Corporate (eg. Secretary or Body Corporate Manager). An Information Certificate is normally only required for settlement purposes as it contains accurate information regarding Body Corporate contributions and outstanding amounts that are owed. A Disclosure statement should not be relied upon for settlement purposes.