Real estate agents have record keeping and disclosure requirements related to pre-purchase property inspection reports.
Starting 15 August 2016, these requirements should make it easier, and potentially cheaper, for a prospective home buyer to obtain pre-purchase building and pest inspection reports, and strata or community scheme reports.
The agent is required to make a record of certain property inspection reports (listed below). They only need to provide this information when the prospective buyer asks for the sale contract for the property.
The reports that the agent needs to record are:
The reports concerning strata schemes are generally known as a ‘strata search’.
Agents must record the following details for each report that they are aware of or can reasonably obtain:
For practical assistance in complying with the requirements, agents should refer to Frequently asked questions – property inspection reports page.
Penalties of up to $4,400 will apply to a corporation and up to $2,200 in any other case where there is non-compliance with these record keeping and disclosure requirements.
Record keeping requirements for property reports come under clause 33A of the Property, Stock and Business Agents Regulation 2014.
For an overview of the 2016 amendments to the Regulation, refer to the Property reports and commercial exemption reforms page.