Unit Titles Act Disclosure Regime
Freddy learns about the Unit Titles Act disclosure regime
“In here, Pebbles,” said Freddy as he heard his daughter come in through the front door. “You will be able to help me with this. I am thinking of selling my apartment in town now that the tenant has left. I met with my real estate agent this morning and she said that there were a couple of matters that I needed to deal with under the Unit Titles Act. Do you know what she was meaning?”
“I sure do,” said Pebbles taking a seat at the dining table. “The apartment is what’s known as a unit title property. As such, it is subject to the Unit Titles Act. The Act specifies that you have to provide a number of disclosure statements to a buyer when selling. They are, essentially, to provide buyers with further information on the property.”
“First things first. If you are going to sell you will need to provide the buyer with a pre-contract disclosure statement. It’s important that that is provided to the buyer before you enter into an agreement with them, so you need to get that organised now.”
“Righto,” said Freddy. “I better get onto that.”
“I would suggest that you have a chat to the chairperson of the body corporate. They may have previously issued pre-contract disclosure statements for owners of other apartments in the block that have sold. If there’s uncertainty about what is required, give your lawyer a call.”
“Good idea,” said Freddy. “Jim’s the chairperson. I’ll give him a call. I know he runs a pretty tight ship.”
“Once you’ve got a signed agreement in place,” said Pebbles, “the next statement that you may need to provide is an additional disclosure statement. You will only need to provide that if it is requested by the buyer. As you’re going to be talking to Jim, check with him that he will be able to produce this statement if you are called upon by the buyer to provide it. There is a fair bit that needs to be disclosed such as the balances of bank accounts held by the body corporate, details of the body corporate’s long term maintenance plan and details of every current contract entered into by the body corporate to name but a few of the matters.”
“All right then,” said Freddy. “I hope there isn’t too much more!”
“Well, the last statement that you will need to provide is what is called a pre-settlement disclosure statement. This is mandatory and you will need to provide that to the buyer no later than five working days before the settlement date. You also need to provide the buyer with an insurance certificate for all insurance policies held by the body corporate.”
“Great, thanks Pebbles. I better get moving then.”
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