4 disclosures you must make when selling your property
With combined capital house and unit prices ending 2023 at a new record according to this report, some homeowners are probably thinking now really is the time to move onto the next stage of their lives.
While it’s common practice for buyers to make an offer subject to a building inspection report, there are some disclosures a property owner legally must make when putting their house on the market.
Here are 4 important ones:
1. Pre-contractual Disclosure Obligations
These relate to any limitations or defects in the property title that potential buyers should be aware of, and include:
- Easements
Any sections of land that others have the right to use for a specific purpose, even if they are not the landowner. This could include electrical or water easements for authorities or a shared driveway.
- Covenants, or restrictive covenants
These are obligations that require a property owner to adhere to certain rules. For example, there may be a covenant that requires the maintenance of street landscaping or home-front finishes to a certain standard.
- Leases
If a property is currently rented, potential buyers need to know the details of any ongoing leases.
- Zoning disclosure laws
Is the property situated in a flood or bushfire-prone zone? This will need to be in the disclosure list.
2. Building Consent and Unapproved Structures
If you have made renovations to your property, you will need to provide the necessary documentation to show that the work has been completed to standards and approved. You may need to show certificates of compliance if work has been done within a certain timeframe or if you have made the renovation yourself.
You will also need to disclose any unapproved structures on the property. These could include patios, pools, or outdoor spas.
3. Property Defects
No-one wants to buy faulty goods, and property is no different. You must disclose defects such as structural problems, dampness, faulty fixtures and appliances.
Insect infestations, such as white ants, also come under this heading.
4. Sensitive issues/property history
While older properties attract buyers for nostalgic reasons, some properties have a not-so-pleasant history. Sensitive issues such as a property being the site of a murder, vicious/violent crime, or an accident, or if it was used for illegal drug manufacturing must be declared. These events may affect buyers’ perceptions of the property and its value.
This disclosures list isn’t conclusive and we strongly recommend you seek professional legal advice from your conveyancer or conveyancing solicitor.
Disclosures are a legal obligation, and if you don’t disclose everything, or if the information is perceived to be misleading it’s not just your buyer you’ll potentially lose; you could be fined, or even risk jail.
Want to know what your house could get in today’s market?
Use our free online appraisal tool by Corelogic.
If that’s given you food for thought, contact us direct so we can come round and give you a more accurate free, independent and non-obligatory quote.
Furthermore, as a family-owned business with nearly 50 years of selling property experience behind us, we can give you great advice on what you can do to improve your property right now.
Drop into our Cardiff office, give us a call on 02 4954 8833 or send us an email to: mail@apnewcastle.com.au.
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