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FACT SHEET
RESIDENTIAL PROPERTY TRANSACTIONS BILL 2013
The Residential Property Transactions Bill 2013 repeals the
existing vendor disclosure scheme contained in Part 10 of
the Property and Land Transactions Act 2005. This scheme
was based on answers to a series of questions that the
vendor was required to give to purchasers. In developing
the detail of this scheme, it was found to be impossible to
create questions that did not create legal risk for the vendor
or ambiguity for the purchaser. For these reasons, the new
scheme takes a difference approach and relies entirely on
the provision of third party documents.
The key policy of this Bill is to address illegal building works
and to identify costly remediation work. The Bill also adopts
the existing practise of obtaining a building inspection report
prior to settlement. Currently, the standard industry
contract for sale provides that an inspection report can be
obtained by agreement of both vendor and purchaser. This
Bill provides that a purchaser has a right to obtain a building
inspection report, which can be exercised during the cooling
off period.
The Bill clarifies existing law around the sale of property.
The standard industry contract for sale provides that the
contact can be rescinded where a property is not able to be
used for a residential purpose. As there is doubt about the
application of this contractual provision, the Bill will make
this clear.
The Bill provides that the following matters are implied as a
term of any contract for the sale of a residential dwelling:
unless otherwise disclosed in the contract, there are
no restrictions on the use of the property that may
hinder or prevent the use of the property as a
residential dwelling;
a purchaser can, during the cooling off period, exercise
an option to arrange for a building inspection from an
appropriately qualified building inspector;
a purchaser can, during the cooling off period, exercise
an option to apply for a building certificate, from the
relevant local council.
A purchaser can rescind a contract for sale if it is
established that the property cannot be used for a
residential purpose. A purchase can also rescind the
contract if remedial works are identified that exceed 1% of
the purchase price or a council is unable to issue a building
certificate (for example, where there are unapproved
building works).
Prescribed documents
The legislation will require the vendor to provide certain
documents to the purchaser as part of the contract for sale.
These documents will include:
a copy of the relevant folio of the register or, in the
case of general law system land, a copy of the last
conveyance or mortgage;
a copy of the title plan;
a copy of any agreement with a Planning Authority that
would affect the future use of the property; and
a local government 337 certificate;
a copy of the last local government rates notice for the
property;
a copy of all easements and covenants;
a copy of a section 56ZQ certificate for water supply
and sewerage.
If the property is part of a strata scheme the vendor will also
be required to provide:
a copy of any variation to the standard by-laws for
strata schemes;
details of any current and ongoing liabilities of the lot
owner to the body corporate;
details of relevant insurance held by the body
corporate; and
details of the secretary or manager of the body
corporate.
Cooling-off periods:
The Bill will also provide for a cooling off period of 5
business days from the signing of a contract. During the
cooling off period, the purchaser will have an option to
arrange, at their own cost, for a building inspection and/or a
local government building certificate.
This Bill has been developed as a result of extensive
consultation with the community and in consultation with
the Law Society of Tasmania, the Real Estate Institute of
Tasmania and the Local Government Association.