Why Disclosure Is Even More Important in Real Estate Transactions
When a home is bought or sold in Australia, it is traditional to employ the services of a conveyancer. This individual will handle the necessary paperwork and be present at closing to ensure that all goes well for their client. However, the conveyancer can also be the eyes and ears of the customer during the entire process, and this may be particularly advantageous with regard to some new rules.
Why is disclosure even more critical now during a real estate transaction?
Regulation Change
Regulations vary across the country, but in some key areas, real estate agents must now disclose some very specific facts to a would-be buyer. Certainly, the responsibility has always been on the agent to provide the person with important information and make any buyer aware of major defects. Still, the regulators have expanded the rules to cover certain other areas as well.
Notoriety
As an example, has the perceived value of the property been affected by any adverse event? This can apply to the specific property or the general area. After all, someone may have committed a major crime within the house (like manslaughter or murder). If this had taken place recently, the agent is required to disclose. They must also let a would-be buyer know if a former occupier had used the property to either manufacture or distribute a controlled substance. This would attach a certain amount of notoriety to the house and could affect its value in the future.
Natural Disasters
The agent must also bring your attention to any threat posed by recurring natural disasters. This is something that you ought to know anyway if you had done even a reasonable amount of due diligence, but the agent should nevertheless reiterate. As an example, the property could be at risk if it is within a bushfire zone or on a floodplain.
Building Materials
Finally, you'll want to know if any part of the building could pose a health or safety issue due to materials or previous building practices. This will include asbestos in some cases, and they must let you know if you will need to replace external cladding.
Eyes and Ears
The better real estate agents will be thoroughly familiar with this new requirement and will ensure that they always comply. Nevertheless, it's a good idea for you to hire a conveyancing service so that they will also keep an eye on the information provided.
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