ACT Vendor Disclosure

In the Australian Capital Territory the newly introduced Civil Law (Sale of Residential Property)Act 2003 came into effect on 1 July 2004. This legislation seeks to balance the rights of the seller and buyer. The legislation introduces comprehensive reforms to counter gazumping, a five-day cooling-off period and compulsory vendor disclosure. The vendor disclosure is by way of the vendor making the following documents available to all prospective purchasers throughout the time that an offer can be made:
• a copy of the Crown Lease;
• a copy of the current edition of the certificate of title;
• a copy of any encumbrance that is shown on the certificate of title (for example, a restrictive covenant or an easement);
• a statement about any encumbrance that does not appear on the title;
• a copy of the lease conveyancing inquiry documents for the property;
• for a unit, a copy of the units plan, and the current edition of the certificate of title for the common property;
• the building conveyancing inquiry documents;
• the energy efficiency rating statement;
• a building inspection report from an inspection carried out not earlier than 3 months before the day the property was first advertised for sale or listed by an agent; and
• a pest inspection report.
It is an offence if a seller does not make the required documents available for inspection by a prospective buyer.

The following conditions must also be included in all contracts for the sale of residential property:
• the property is sold free of encumbrances;
• the buyer is entitled to vacant possession;
• that there are no unapproved structures, except as disclosed in the contract;
• that the buyer may not make any requisitions on the title to the property;
• that there are no unsatisfied judgements, orders or writs affecting the property; and
• that the required documents form part of the contract.
On completion of a contract for the sale of residential property, the seller is entitled to reimbursement from the buyer for the cost of obtaining a building inspection report and a pest inspection report.

If the buyer becomes aware of an error in the description of the property before completion of the contract the buyer may –
i) if the error is material, rescind the contract, or complete the contract and claim damages; and
ii) if the error is not material – complete the contract and claim damages.

Source: Tasmanian Law Reform Report