In NSW, Conveyancing Law places a substantial onus on vendors of properties. RMB Business & Commercial Transactions Division explains.
Under the Conveyancing Act, people intending to sell property in NSW must disclose all relevant information and documents as required under this legislation to potential purchasers. If a Vendor does not disclose these documents or information to a purchaser who later becomes aware of this undisclosed information, the purchaser may be able to terminate the contract of sale and the vendor may be liable for costs.
In NSW, vendors are required to disclose the following:
- A contract of sale including a copy of the title documents, drainage diagram and a current Zoning Certificate issued by the local council.
- If the property for sale has a swimming or spa pool, the seller needs to give a copy of a valid certificate of compliance, a valid occupation certificate, and evidence that a pool has been registered or a valid certificate of non-compliance.
- If the property has been subject to flooding from a natural event or bush fire in the last five years.
- If the property is subject to significant health and safety risks.
- If the property is listed as containing loose-fill asbestos insulation that is required to be maintained.
- If the property was the scene of a murder or manslaughter within the last five years.
- If the property was used for manufacture, cultivation, or supply of prohibited drugs in the last two years.
- If the property has any external combustible cladding, even if there is the intention to rectify it.
- If the property has been lodged under the Environmental Planning and Assessment Act 1979 for rectification of the building regarding external combustible cladding.
- If the property is undergoing a building work rectification order, prohibition order or a stop work order.
It is important that vendors and their real estate agents are aware of these requirements and give careful consideration to any facts and circumstances concerning the property which they may be required to disclose. If they are hesitant about whether or not to disclose a fact because they are concerned it may affect the property’s sale, it likely will need to be disclosed.
RMB’s experienced Property Division can assist with all aspects of vendor disclosure obligations, and conveyancing generally.
RMB’s experienced Property Division can assist with all aspects of vendor disclosure obligations and conveyancing. Your first step should be to contact our office to arrange a free consultation. You can contact us by by phone or our 'Ask a Question' tool on our website.