What must a seller disclose when selling a property?

When selling your home, you have a responsibility to offer a clear picture to the possible buyer. Here's what you need to disclose about your property.

 

What do I need to disclose when selling my house?

No matter which state or territory you live in, let’s take a look at some of the key things you have to disclose.

 

 

Pre-contractual disclosure obligations

pre-contractual disclosure obligations relate to limitations, restraints, or “defects” in the property title.

 

These are mainly:

 

  • easements;
  • covenants;
  • leasing;
  • zoning.

 

Easements

Easements give someone the right to use the land for a specific purpose, even if they’re not the land owner, such as an electrical or water easement for authorities, or a shared driveway.

Covenants

Covenants are an obligation that requires a property owner to abide by certain rules. An example could be a requirement that street landscaping or home-front finishes be maintained to an agreed finish and quality.

Leases

Leases are where property remains under a rental agreement for a continued period after settlement.

Zoning

Zoning disclosure laws vary considerably across states. In Queensland and New South Wales, you must disclose if your property is in a flood zone. Bushfire-prone zones need to be declared in South Australia, New South Wales and Victoria, while graves on your land must be disclosed in Tasmania.

 

 

Building consent

Made some renovations to your property? You’ll need to provide the necessary documentation to show all works are up-to-date and approved. Martin says this also means you’ll have to disclose any building improvements that do not have full approval.

Property defects

Most states require a seller to disclose issues such as structural problems, damp, insect infestation or fixtures and appliances that don’t work, even if it’s a common practice for buyers to get building inspection reports before making an offer.

Sensitive issues

Some states have imposed stricter requirements around declarations where a property has been the site of a murder, vicious crime or accident, as these may affect buyers’ perceptions of the property and, as a result, its value.

A property previously used for illegal drug manufacturing also needs to be declared in most states, along with proof of the required rehabilitation to minimise any potential health impacts.

Asbestos

Most states require you to disclose whether you have, could have, or have had, asbestos on the property.

The ACT requires an Asbestos Advice and Acceptance Report, while Victoria recently made disclosure mandatory. And if your state or territory doesn’t have asbestos disclosure requirements yet, it more than likely will soon.

 

Should you repair or renovate rather than disclose problems?

If the issues are a simple repair, it is always best to do the repairs in advance. The better the house looks to an appraiser, the better the value.

Not doing the repairs could mean your home isn’t valued as high as it should be, or it could delay the sale.

If the appraiser finds items needing repairs when they inspect the home, they will condition for the repairs in the appraisal,” Cohn said. “These repairs generally have to occur prior to the closing of a sale and can cause time delays and extra expenses to the buyer such as a re-inspection for completion.

The more you repair the problems or renovate to upgrade outdated technology or appliances, the better it looks to the buyer. If you have the time to devote to renovations, it might be better than letting them slip by.

Bottom line

If you’re trying to sell your home, it’s important to disclose any potentially problematic concerns. Buyers should be made aware of a home’s repair history not only so they know what’s been done, but also to be on the lookout for future issues.

While disclosing more information could lead to a lower home value, it also has the potential to help you. Since you have the chance to make repairs and upgrades whenever possible, doing so could boost the value of your home. Major structural damages should be fixed before you sell, or you risk not being able to sell the property as-is. But try to prioritize repairs and renovations for other areas based on how soon the fixes can take place and what’s in your budget.   

Hire a local real estate agent

A local real estate agent has the experience about disclose matters during selling of your home and he has the idea to negotiate with the buyer about disclose matter. 

real estate agent in Ingleburn

Find how much your property has grown in the current real estate market?

 

 

 

Note: This is not a financial advice

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