Understanding Non-Disclosure in Property Sales

In the world of real estate transactions, transparency is key. When selling a property, it's not just about finding the right buyer; it's also about being upfront and honest about the property's condition and history. Failure to disclose important information can lead to legal consequences and complications down the line. So, what exactly is non-disclosure, and how can sellers avoid it?

Under the Property Law Act, sellers have a legal obligation to disclose all relevant information about a property during the sales process. This includes comprehensive details that could impact a buyer's decision. Here's what you need to know:

What Should You Disclose?

When preparing to sell a property, sellers must provide detailed information on various aspects, such as:

• Details about body corporates

• Gas and water allocations

• Easements and caveats

• Status of smoke alarms and safety switches

• Pool safety certificates

These are just a few examples of what needs to be disclosed. Essentially, any material fact that could influence a buyer's decision must be revealed.

Material Facts: What Are They?

Material facts are defined as aspects of the property that could significantly affect a buyer's decision. This includes risks like flooding, land contamination, or the property's history (e.g. serious crimes or illegal activities).

Accuracy and Verifiability

It's not just about disclosing information; it's also about ensuring its accuracy and verifiability. This includes providing proof of council approvals for structures, renovations, and compliance with building regulations.

Consequences of Non-Disclosure

Failing to disclose crucial information can have serious repercussions. If undisclosed issues come to light during or after the sale process, the buyer may have the right to terminate the contract. Additionally, the buyer could seek compensation and damages due to the non-disclosure.

How to Avoid Non-Disclosure

To steer clear of legal issues and ensure a fair sales process, sellers should:

• Conduct thorough due diligence on the property

• Keep detailed records of all property-related information

• Seek legal advice if unsure about what needs to be disclosed

• Be transparent and forthcoming with potential buyers

By adhering to these guidelines, sellers can protect themselves from potential legal disputes and create a smoother transaction process for both parties involved.

In summary, non-disclosure in property sales can have serious consequences. Sellers must prioritise transparency and honesty throughout the sales process to avoid legal repercussions and ensure a successful transaction. Remember, when it comes to property sales, honesty is always the best policy.

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