Material facts disclosure

If you are selling a property, you need to be aware of your material facts disclosure obligations under the Sale of Land Act.

What the legislation says

In simple terms, any person who, with the intention of inducing any person to buy any land, knowingly or recklessly makes any false, misleading or deceptive representation or knowingly conceals any material facts is guilty of an offence punishable by up to 120 penalty units (over $20,000) or up to 12 months jail.

What this means for vendors

During the process of trying to sell your property, you must tell a prospective purchaser anything that could be considered relevant to a purchaser's decision about whether or not to purchase the property, and you must not tell them anything untrue. You must also answer any questions about the property from a prospective purchaser as fully and frankly as you can. The real estate agent is also covered by this legislation and must do the same.

What needs to be disclosed

The legislation doesn't specify exactly what needs to be disclosed, but does provide for Consumer Affairs Victoria to make guidelines about relevant disclosures. A copy of the guidelines are set out below. Some common disclosures that may need to be made are if there are active termites or termite damage at the property (particularly relevant to Ararat properties, as Ararat is a termite prone area), if the property is under an airport flight path (Macarthur Park and Sunraysia Heights in Miners Rest, this applies to you), and if there is asbestos at the property (potential in any house built or renovated prior to 1990, but most likely in older homes, of which there are plenty in Ballarat). This is not an exhaustive list, and your property may have unique disclosures to be made.

How to disclose

If you are listing a property for sale with a real estate agent, the agent might ask you about these matters, and tell prospective purchasers verbally about any disclosures that need to be made.

Whether or not you are using an agent, I will still ask you about these matters by requesting that you complete a questionnaire as part of the preparation of your vendor statement. I will review your answers and determine whether there are any matters which need to be disclosed in the vendor statement.