When dealing with Units, townhouses or any residential property that incorporates a Body
Corporate in Queensland, you must make sure that a Disclosure Statement signed by the Seller is provided to the Buyer before they enter into the contract.
The Disclosure Statement contains information about the Body Corporate including but not
limited to the following:-
1- The contact details for the Secretary (or person responsible for keeping the records);
2- The annual contributions for the Scheme;
3- Improvements on the Common Property that the Lot owner is responsible for;
4- Body Corporate assets required to be registered;
5- If there is a Committee or Body Corporate Manager who performs the functions of the
Committee; and
6- Any information prescribed under the module that applies to the property.
A failure to provide a suitably complete Disclosure Statement before the Buyer enters into the contract can result in the Buyer being able to terminate the Contract at any time, including the date of settlement.
If the Disclosure Statement is inaccurate, a Buyer may have rights to terminate. These rights expire fourteen (14) days after the date the Buyer (or the person acting for the Buyer) is given a copy of the Contract. In order to exercise those rights, the Buyer must show that the inaccuracy materially prejudices them or that the Buyer has taken reasonable steps to verify the information is accurate and been unable to do so. As these are subjective tests, it is recommended that any person wishing to utilise same get detailed advice from a Legal Practitioner.
Given the risks associated with Disclosure Statements, it is recommended that these documents are always obtained from professional Service providers and signed by the Sellers themselves.
If you have further questions about Disclosure Statements, and your obligations or risks associated with same, please don’t hesitate to contact Conveyancing Connection for a discussion with one of our Solicitors.
