Disclosure Day – coming soon!

Disclosure Day – coming soon!

We are now less than 2 weeks from “D” Day – “Disclosure Day”, when the new seller disclosure scheme kicks off on the 1^st of August, requiring sellers and agents alike to take a more proactive approach to contract preparation than we have otherwise been used to.

I’ve covered previously the fact that while there are some new requirements in here, a lot of the information required was already being provided to buyers (particularly by those agents following best practice), but these new requirements will soon mean that every seller needs to make sure that the relevant information is ready in advance, to make sure contracts can flow as quickly as possible once a buyer is identified.

Title searches and survey plans are readily available within just a few minutes, but council searches can take days or weeks, depending on the specific search and level of detail required. Contracts can technically be signed without disclosures, but unless a seller REALLY likes spinning the roulette wheel and wants the uncertainty of a contract that never goes unconditional before settlement (and can therefore be terminated at any time), its really not something I would recommend.

For those new to market now, or without a buyer ready to sign within the week, I’d suggest getting your skates on with completing your disclosure requirements to avoid delays later on. Disclosure documents are available already for REIQ accredited agencies, and just because you don’t NEED it right now, it doesn’t mean waiting til the last minute is a great idea either. I would consider tackling it early as a bit of an insurance policy – better to have it and not need it, than not have it and it suddenly becomes much more important.

Along with these new disclosures come brand spanking new sale contracts, reducing from 4 different forms to just 2 – one for commercial properties and one for residential properties. With the current Contract for Houses and Residential Land on version NINETEEN since 2014, it’ll be refreshing to start again with a new version ONE.

As tempting as it might be to have your agent prepare the necessary disclosures at the same time as they prep the contract, don’t be surprised to be referred elsewhere for this paperwork, at least over the next 6-12 months. With a level of uncertainty around the implications of errors, inadvertent or not, most agents will likely take a conservative approach to doing disclosures in-house. With numerous law firms and other suppliers moving into the breach though, no-one should get stuck without options.