When selling a house, it is important to know what your obligations to prospective purchasers are in terms of disclosure. This will ensure that you are complying with state regulations and minimise the chance that you will be accused of non-disclosure, as this may give the purchaser grounds to rescind the sales contract.
Disclosure Requirements When Selling a House
The Conveyancing Act 1919 (NSW) requires that vendors need to disclose the following to prospective purchasers to ensure that the sale is valid:
- A contract of sale, including a copy of the title documents, drainage diagram, and a current Zoning Certificate issued by the local council;
- Where the property has a swimming pool or spa, the vendor needs to provide a registration certificate issued from the Swimming Pool Register, and either a valid swimming pool certificate of compliance, an occupation certificate, or a certificate of non-compliance.
- Under section 60 of the Property and Stock Agent Regulation 2022 (NSW), the vendor must also disclose the following ‘material facts’:
- Whether the property has been subject to flooding from a natural weather event or bush fires in the last 5 years;
- Whether the property is subject to significant health or safety risks;
- Whether the property is listed on the register of premises which contain loose-fill asbestos insulation required to be maintained;
- Whether, within the last 5 years, the property was the scene of a crime of murder or manslaughter;
- Whether, within the last 2 years, the property was used for the purposes of manufacture, cultivation, or supply of a prohibited drug or plant;
- Whether the property has any external combustible cladding;
- Whether the property has been lodged for a development application for the rectification of the building regarding external combustible cladding; and
- Whether there is a building work rectification order, a prohibition order, or a stop work order in force in relation to the property.
Adverse Affectations
In addition to the above requirements, a vendor will also need to disclose any known adverse affectations to the property, as there is an implied warranty in the contract that the property is not affected by any matters not disclosed in the contract.
If the vendor knows of an adverse affectation, and does not disclose it, this may be grounds for a purchaser to rescind a contract, so it is important that a vendor ensures that they are complying with the current legislation with respect to what is classified as an adverse affectation. Some adverse affectations which will need to be disclosed may include:
- A proposal by an energy distributor to acquire any right or interest in the whole or any part of the land;
- A listing on the State Heritage Register; or
- A proposal by a government body to acquire the whole or any part of the land.
If you are a vendor looking to selling a house, it is best that you contact a professional who is experienced with the legislation surrounding conveyancing to ensure that you are not left liable for non-disclosure. At ATA Legal, our solicitors have extensive expertise in this area, and will be happy to help you navigate these rules and regulations.
Please feel free to contact our office on (02) 8580 2312, or by email at info@atalegal.com.au if you are a vendor or purchaser looking to know more about disclosure requirements during the conveyancing process.
Need Advice?
Speak with one of our helpful team members today!
