Foreword
Buying a house is probably one of the most important plans for a person. Many believe that the seller must disclose matters affecting the value of the real estate, especially if the buyer has no other way to find the full history of the house.
Lawyers or transporters acting on behalf of the buyer may tell them that the law is “buyer beware”. The buyer should assure itself that the property is not affected by a defect in title, that it can be used for the buyer’s intent, and that any building on the property is intact.
If a supplier actively conceals a known defect, it may constitute fraud. For example, using paint to mask severe termite damage, or deliberately giving wrong answers to buyers’ questions about the property.
However, the buyer needs to prove that the seller is intentionally dishonest or at least Lu re. This is proof of the high standards that can be met. The law requires suppliers in certain states, including New South Wales and Victoria, to disclose ownership documents and any registered property rights, such as easements and deeds. The seller’s mortgage will be settled at settlement.
In Australia, suppliers must attach a local council certificate to the contract to prove whether the land has been affected by administrative or regulatory matters. This includes issues such as zoning, subdivision, contaminated land or identified forest fires or flood hazards. These municipal certificates give buyers a good idea of whether they can use the property as they wish.
If certain statutory requirements have not been disclosed, the buyer can cancel the contract and refund the deposit, provided that the matter is so important that they will not sign the contract if they do not know the contract.
However, in Victoria, there is no obligation to disclose matters related to land ownership or use. If the property is commercial or investment property, the Australian Consumer Act provides compensation to the buyer who induced the contract by misleading or deceptive conduct by the seller or seller’s agent. Even if the seller sells the product privately, the agent may still be liable if the agent misrepresents the property or tells misleading facts.
However, the seller or its agent is still under no obligation to disclose matters that may affect the value of the property and may be significant to the buyer, but these matters do not constitute a defect in title that cannot be found through reasonable inspection.
How far should disclosure go
Should the seller be obliged to disclose everything that could affect the buyer? For Victoria, following the requirements of New South Wales to disclose Council information is a good example. But beyond that, how far should disclosure obligations go?
For example, should a property have a terrible incident, such as a murder or other violent and disturbing incident, should the seller be required to inform the potential buyer of the incident? In some U.S. states, courts have ruled that the seller should disclose the history of the house that was murdered. American agents called these “stigma.”
Some buyers may be particularly sensitive and believe that they should be provided with comprehensive information about the history of the property. Is it necessary to disclose that someone has died from property, even if it is old or due to natural causes?
Just as the supplier may not understand any structural flaws in the property, they may not know the history of the property. For example, the landlord seller may not know how the tenant lives in the house. Therefore, it may not be fair to transfer the risk of any decline in value caused by sensitive buyers to the seller. Real estate agents are usually responsible for the marketing of property. Therefore, if any liability is to be published in this regard, perhaps this should be borne by the agent (not the seller) and should be limited to the ability to compensate rather than withdraw from the sale. Buyers can always sell for a low price, but if the seller must bear all responsibility for disclosing its history, the seller may insist on using the property without reservation.
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