The landscape of property development in Australia is set to change significantly in 2025, with new legal obligations introduced under Building and Construction Law. These changes place a greater emphasis on transparency and accountability, ensuring that buyers, contractors, and investors are better informed throughout the building process. For developers, understanding what must be disclosed—and when—is crucial to avoiding legal pitfalls, delays, and costly disputes.
This article explores the key developer disclosure requirements under the new laws, outlines why they matter, and provides guidance on how developers can stay compliant in 2025 and beyond.
What Are the 2025 Building and Construction Law Reforms?
The 2025 reforms to Building and Construction Law aim to address longstanding issues in the property development industry, including incomplete or misleading information provided to purchasers. These laws apply across various jurisdictions and require developers to disclose critical details about projects well before a property is sold.
The primary goal of these updates is to enhance buyer confidence by ensuring that all potential risks—such as building defects, zoning restrictions, and financial encumbrances—are clearly disclosed. In turn, this shift also protects developers by reducing the likelihood of disputes arising from non-disclosure.
What Must Developers Disclose in 2025?
The disclosure requirements have expanded significantly. Under the new legislation, developers must provide a clear and comprehensive set of information, including:
Building Plans and SpecificationsDevelopers must disclose all approved plans, building permits, and specifications. Any variations to the original plans must also be documented and shared with prospective buyers.
Known Building Defects or Structural IssuesTransparency around construction defects is now a legal requirement. Developers must inform buyers of any current or previous issues with the property, including waterproofing problems, structural faults, or unresolved repair work.
Financial and Legal EncumbrancesAny mortgages, liens, or financial obligations attached to the property must be clearly stated. Developers are also required to disclose any legal disputes or pending litigation relating to the development.
Zoning and Compliance CertificatesDevelopers must provide evidence of zoning compliance, building approvals, and certifications from relevant local councils or building authorities.
Material Changes During ConstructionIf significant changes occur during the building process—such as alterations to materials or finishes—these updates must be disclosed to buyers promptly.
Why Disclosure Matters Under Building and Construction Law
Failure to comply with disclosure requirements can result in severe consequences. Developers who do not disclose essential information may face:
Legal penalties or fines under Building and Construction Law.
Contract cancellations by buyers due to non-compliance.
Reputational damage, which can harm future development projects.
By adhering to the 2025 disclosure rules, developers not only meet their legal obligations but also build trust with buyers, creating a stronger reputation within the property market.
Practical Tips for Developers to Stay Compliant
Conduct Regular Legal Audits: Work with construction lawyers to review all documentation and ensure every disclosure requirement is met.
Maintain Clear Records: Keep detailed records of building permits, compliance certificates, and correspondence with contractors.
Engage with Independent Inspectors: Having third-party building inspections can provide additional transparency and reassurance for buyers.
Update Contracts and Marketing Materials: Ensure all promotional and sales materials accurately reflect the project’s current status.
The Role of Legal Advice
Navigating the complexities of Building and Construction Law can be challenging, particularly with the introduction of new disclosure requirements. A construction lawyer can assist developers by:
Reviewing contracts for compliance with 2025 legislation.
Drafting disclosure documents to reduce legal risks.
Advising on dispute resolution should any issues arise with buyers or contractors.
By seeking expert advice early, developers can avoid costly mistakes and ensure smooth project delivery.
How These Laws Protect Buyers and Developers
While the new regulations aim to protect buyers, they also benefit developers by reducing post-sale disputes. When all parties have clear, accurate information, there is less room for conflict or misunderstanding. Developers who comply with these laws are also more likely to attract serious buyers who value transparency and integrity.
Navigating the latest changes to Building and Construction Law can be challenging. Our expert legal team is here to guide you through developer disclosure requirements, ensuring you remain fully compliant and avoid costly disputes.