Essential disclosures when selling property: What you need to know

When it comes to selling a property, transparency is key. You might be eager to close the deal and move on, but failing to disclose critical information can lead to severe consequences, both legally and ethically. In this blog, we'll explore the crucial aspects you need to disclose when selling a property, from legal obligations to sensitive issues. So, if you're planning to put your property on the market, read on to ensure you're fully aware of your pre-contractual disclosure obligations.

Pre-Contractual Disclosure Obligations

Easements
Easements are rights granted to others to use your land for specific purposes, such as electrical or water access. When selling your property, it's essential to disclose any existing easements. Buyers have the right to know about these encumbrances on the property they are purchasing.

Covenants
Covenants are obligations that dictate certain rules for a property, such as maintaining landscaping or specific home-front finishes. If your property is subject to any covenants, make sure to disclose them. Buyers need to be aware of any restrictions that may affect their use of the property.

Leases
If your property is currently under a rental agreement and the lease will continue after the sale, it must be disclosed. Buyers have the right to know if they are inheriting tenants and lease agreements.

Zoning
Zoning laws can affect your property in various ways, including flood zones, bushfire-prone zones, or graves on the land. The disclosure laws related to these zoning issues may vary by state, so it's crucial to be aware of and communicate any pertinent zoning information.

Building Consent

Renovations
If you've made renovations to your property, it's imperative to ensure that all work is up-to-date and approved by the relevant authorities. Any building improvements that don't have full approval must be disclosed to potential buyers.

Property Defects

Structural Problems
Any structural problems, such as foundation issues or roofing defects, should be disclosed. It's in your best interest to be honest about the property's condition to avoid potential legal complications.

Dampness and Infestations
Dampness and insect infestations can significantly impact a property's value and safety. Disclosing these issues is not only ethical but also a legal requirement.

Non-Functional Fixtures and Appliances
If certain fixtures or appliances in your property are non-functional, you must inform potential buyers. Honesty is key to maintaining your reputation as a seller.

Asbestos
Asbestos is a dangerous material that can pose health risks. If your property has or has had asbestos, this information must be disclosed to ensure the safety of the future occupants.

Sensitive Issues

History of Tragic Events
If your property has been the site of a murder, suicide, crime, or accident, it's essential to disclose this information. While it can be a sensitive topic, buyers have a right to know about the property's history.

Previous Illegal Activities
Properties that were previously used for illegal drug manufacturing must also be disclosed. Hiding this information can have serious legal consequences.

Consequences of Non-Disclosure

Failure to disclose any of these items can result in severe consequences, including fines and potential jail time, depending on your location. Moreover, it can jeopardize the sale itself and harm your reputation as a seller.

Ensuring Disclosure

If you are uncertain about whether to disclose certain information, it's best to err on the side of caution. You can include these details in the contract's special condition section. For assistance with drafting this section, consider having the seller's solicitor assist you. Their expertise can help ensure that you fulfil your disclosure obligations effectively.

Thank you to Rebecca Petroff from Sunstate Conveyancing for sharing this very important information with us.