Selling a house is more than just putting a "For Sale" sign in front of your property. It involves a lot of legalities, documentation, and most importantly, full disclosure of certain facts about the property to potential buyers. In Australia, failing to disclose certain information about your property can lead to potential lawsuits, so it's essential to be aware of what you need to disclose. Here are some tips and how-to-guides on what to disclose when selling a house in Australia:
1. Pre-Contractual Disclosure Obligations:
When you're preparing to sell your house, it's essential to make a few disclosures before signing any contract with a potential buyer. These disclosures generally include information about the title of the property, any encumbrances like easements or covenants, zoning regulations, and any other legal matters that may affect the property.
How to do it: You can work with a conveyancer or solicitor to prepare a vendor's statement or a Section 32 statement, which lists all the necessary disclosures. This statement is usually presented to potential buyers before they sign the contract.
2. Building Consents and Permits:
If you've made any modifications or improvements to your property, you need to disclose this information to the potential buyers. This includes any building work, renovations, or extensions that were done with or without the necessary permits.
How to do it: Provide copies of building consents, permits, and final inspection certificates for any work done on the property. If you don't have the necessary permits, you should disclose this to the buyer, who may still be willing to proceed with the sale despite the lack of permits.
3. Defects:
You're legally required to disclose any known defects that could affect the property's value or the buyer's enjoyment of the property. This includes structural problems, issues with the plumbing or electrical systems, or even pest infestations.
How to do it: You can disclose these defects in the vendor's statement or during negotiations with the buyer. Be as honest and transparent as possible. If you're unsure whether something is a defect, it's best to disclose it anyway.
4. Sensitive Issues:
Sometimes, there might be sensitive issues associated with a property that could affect a buyer's decision. This might include a death in the house, a history of criminal activity, or any disputes with neighbors.
How to do it: These issues can be tricky to navigate. Consult with your real estate agent or solicitor about how best to disclose these sensitive matters.
5. Asbestos:
Many older homes in Australia may contain asbestos, a hazardous material that can be harmful when disturbed. If your house has asbestos, you're required to disclose it.
How to do it: If you're aware of any asbestos in your property, disclose it in the vendor's statement. If you're not sure, you may want to get an asbestos inspection.
What happens if something isn't disclosed?
Failing to disclose any of the above information can have serious consequences. The buyer could potentially sue you for misrepresentation or breach of contract, which could lead to significant financial penalties. In some cases, the sale could be reversed, meaning you would have to take back the property and return the purchase price.
In conclusion, full disclosure is key when selling a house in Australia. It protects both you and the buyer, ensuring a smoother, more transparent transaction. Remember, when in doubt, it's always better to disclose. Consult with your real estate agent or solicitor if you're unsure about what to disclose.