Referred to as the Seller Disclosure Scheme or Seller Disclosure Laws, the changes are aimed at providing buyers with certain information they need when making a decision about purchasing a property.
The following information must be provided in the ‘Form 2’ Disclosure Statement before a contract is signed:
- Title details, encumbrances and any rent agreements in place in the past 12 months.
- Land use, planning and environment matters, such as whether the property is affected by a government resumption proposal.
- Building and structure related information such as whether work has been carried out by an owner builder in the last six years.
- Rates and water information.
- Information related to community titles schemes or body corporates.
Sounds like a lot? Well, it is. Ultimately it aims to help buyers make fully information decisions, which is a good thing. One of the criticisms of the scheme is that it may add to conveyancing costs for sellers to prepare the Disclosure Statement, reports the ABC.
Buyers need to keep in mind that the new disclosure requirements are not intended to replace existing due diligence buyers typically do, including building and pest inspections as well as title and planning searches your solicitor can help with. The following information is not included in the Disclosure Statement:
- Flooding or natural hazard history
- Structural soundness or pest infestation
- Building or development approvals
- Asbestos presence
- Utility connections.
Want to learn more? Check out the Guide to the Seller Disclosure Scheme.
Thinking of selling? Find out how much your property is worth or talk to us about selling.
