Understanding Smoke Alarm Compliance: What Buyers and Sellers Need to Know

If you're navigating a property transaction, smoke alarm compliance is one of those critical details both sellers and buyers should be aware of. According to clause 7.8 in standard property contracts, each party has specific obligations regarding the presence and compliance of smoke alarms.

Seller Responsibilities: Disclosure Obligations

Under the law, the seller must disclose whether compliant smoke alarms are installed in the property. While there's no legal requirement for the seller to provide a smoke alarm compliance certificate to the buyer, honesty is essential. If it’s found that the seller provided incorrect information, the buyer may have grounds to claim non-disclosure. This could allow the buyer to seek compensation and, in some cases, even terminate the contract right up to the settlement date.

Buyer Rights: Inspection and Adjustments

On the buyer's side, condition 8.2 (5) grants the right to inspect the property to check for compliant smoke alarms. This inspection can happen once before settlement, giving the buyer a chance to ensure that the safety measures meet legal requirements. Should the buyer discover non-compliance, they or their representative must inform the seller’s solicitor in writing before settlement. This notification can lead to an adjustment of 0.15% of the purchase price—a significant deduction for any discrepancies in smoke alarm compliance.

In short, both parties need to understand these provisions to avoid complications at settlement and ensure that all safety standards are met. Smoke alarm compliance isn’t just a legal requirement; it’s a matter of safety for everyone involved.