| What do You Have to Disclose When Selling Your House
When you’re selling a property, it’s essential to disclose specific information about the property to the buyer by law before signing a contract. Failure to do so may result in penalties and the buyer may also be able to terminate the contract and recover compensation from you. Each state has its own set of regulations that dictate what sellers must tell potential buyers. It’s crucial to seek professional legal advice to ensure you comply with these regulations.
Here are some critical points that sellers should always disclose:
- Mortgage Encumbrance
The most common encumbrance is mortgage encumbrance. The lender has a financial interest in the property title until the mortgage is paid off. This must be disclosed and the mortgage must be paid off; otherwise, the lender can foreclose and seize the house as collateral.
- Restrictive Covenants
A covenant places restrictions on the use of the property. These are more common in apartment and townhouse complexes. For example, the exterior finish needs to be a certain color, material, and detail.
- Certificates
If the property has a pool, a pool safety certificate must be obtained, or it must be included as part of the sale contract.
- Leases
If the property is leased, provide full details of the lease, including when the lease expires.
- Easements
An easement is where another party has permission to use the land for a specified purpose. For example, a shared driveway, an electrical or water easement for council.
- Zoning
Zoning regulations vary from state to state and even different council areas. Examples of zoning that you need to disclose include Bushfire Zone and Flood Zone. Check with your local authorities for the zoning of your property.
- Contaminated Land or Environmental Management Register
Disclose if the property currently or previously had asbestos. Include any applications or orders about a tree on the property or any environmental contaminations.
- Building Consent
Provide documentation that shows all renovations were performed to regulation and approved. Disclose any building improvements that do not have full approval.
This list is not exhaustive, and sellers should seek professional legal advice to ensure they disclose all required information. Remember, being transparent with potential buyers can help build trust and avoid legal issues down the track.
Disclaimer: Although all care is taken. We do not give any warranty whatsoever to the accuracy of any content. This is not meant to be financial or professional advice and is only of general nature. You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever. We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever