Selling a property is a significant transaction that involves numerous legalities and obligations.
In New South Wales (NSW), Australia, sellers must disclose specific information to potential buyers to ensure transparency and fairness. Failing to disclose critical details can lead to legal consequences, including the possibility of the sale being voided.
This blog post will outline the key disclosure requirements when selling a property in NSW.
1. Contract for Sale of Land
The primary legal document in the sale process is the Contract for Sale of Land. This contract must be prepared before the property is listed for sale and must include several mandatory documents, such as:
- A current title search: This shows the legal ownership of the property and any encumbrances, such as mortgages or easements.
- Zoning certificate (Section 10.7 Certificate): This indicates how the land can be used and any restrictions or plans for the area.
- Sewerage diagram: Provided by Sydney Water or the local water authority, showing the location of sewer lines.
2. Material Facts
Under NSW law, sellers must disclose any material facts that could affect the buyer’s purchase decision. Material facts are details that a reasonable person would consider important, such as:
- Major defects or structural issues: If the property has significant problems, such as foundation issues, extensive water damage, or termite infestations, these must be disclosed.
- Hazardous materials: Hazardous materials like asbestos or lead-based paint should be disclosed.
- History of the property: If the property was the site of a violent crime or serious accident or if it has been used for illegal activities such as drug manufacturing, this information must be shared.
3. Building and Pest Inspections
While not legally required, providing building and pest inspection reports is common practice. These reports offer potential buyers an independent assessment of the property’s condition, identifying any existing issues or areas of concern.
4. Strata Title Properties
If you are selling a unit or apartment in a strata scheme, additional disclosures are required:
- Strata Report: This report details the strata scheme’s financial health and history, including past and future planned expenditures.
- By-laws: The strata scheme’s by-laws must be disclosed, outlining the rules and regulations that apply to residents.
- Levies and fees: Information about the current and future strata levies must be included.
5. Swimming Pools and Spas
If the property has a swimming pool or spa, the seller must ensure it complies with NSW regulations. This includes providing a valid Certificate of Compliance or, in some cases, a Certificate of Non-Compliance along with a Pool Compliance Certificate. The pool must meet safety standards, including having appropriate fencing.
6. Environmental and Health Hazards
Sellers must disclose any environmental hazards that could affect the property, such as:
- Flood zones: Information about the property’s susceptibility to flooding should be disclosed.
- Bushfire-prone areas: If the property is bushfire-prone, this must be mentioned, and specific building standards may apply.
- Contamination: Any known contamination of the land or water, such as industrial activities, must be disclosed.
7. Disputes and Notices
Any disputes or legal notices affecting the property must be disclosed. This includes:
- Disputes with neighbours: Boundary disputes or noise complaints should be mentioned.
- Council orders: Any orders from the local council, such as demolition or rectification orders, must be disclosed.
Conclusion
Selling a property in NSW involves a comprehensive set of disclosure requirements to protect both the buyer and the seller. By ensuring all necessary information is disclosed, sellers can avoid potential legal issues and facilitate a smoother transaction. If you’re considering selling your property, consulting with a real estate lawyer or conveyancer is advisable to ensure all legal obligations are met.
Remember, transparency and honesty are key to a successful property sale. Providing all required disclosures helps build trust with potential buyers and facilitates a seamless sale process.
Contact Select Conveyancing to ensure you have a smooth property sale or property purchase.