10 December 2010
The NSW Government has completed its review of vendor disclosure requirements. The review was initiated consider whether pre-purchase reports (such as a building inspection report or a pest inspection report) be added to the list of prescribed documents to be attached to a contract of sale by vendors (including property developers).
Our submission to the review argued that new residences, and newly refurbished residences, should not require vendor disclosure where an occupation certificate has or will be issued.
While our precise recommendation was not adopted, the final recommendations of the review have achieved a similar outcome. The review recommends that before offering residential property for sale by auction a vendor must annex to the contract for sale a:
- pest inspection report; and
- building inspection report.
The review opposes the idea that such reports might be required for sales by private treaty, expressions of interest or tender, etc. As most sales by property developers occur via these latter methods, the policy outcome we sought seems likely to be achieved.
The report is available here.