Disclosure Statements

If you’re selling in a body corporate you need to provide your real estate agent with a compliant and current section 206 disclosure statement for your lot.

A section 206 disclosure statement can be obtained from:

Your body corporate manager, or
An independent search agent, or
Prepared by the owner or agent

ORDER A SECTION 206 DISCLOSURE NOW

FAQ’S ABOUT DISCLOSURE STATEMENTS

Do disclosure statements expire?

Yes disclosure statements expire. When they expire is a little more complicated and will depend on the individual body corporate. Please read here for a fuller discussion.

I got my disclosure statement from a search agent. Is it valid?

Assuming the disclosure statement is still current then yes the disclosure is valid despite where it is sourced from. If you’re confident enough you may even prepare your own disclosure statement, which is a good option for duplex owners where the body corporate may not be active.

What’s the difference between a disclosure with or without implied warranties?

A section 206 short form disclosure statement includes all the information required to satisfy the disclosure requirements of the Body Corporate & Community Management Act 1997 (the Act). However the Act also requires that the seller warrant to the purchaser that

to the seller’s knowledge, there are no latent or patent defects in the common property or body corporate assets, other than the following—

(i) defects arising through fair wear and tear;
(ii) defects disclosed in the contract

Consequently, if the seller is aware of any defects in the common property or body corporate assets then disclosing those defects in the contract, by form of disclosure or otherwise, will indemnify the seller.

Why don’t all disclosure statement include Implied Warranties then?

The disclosure statement requirements are set out in section 206 of the Act. Provisions regarding implied warranties are set out in Part 3 of the Act, sections 220 – 224. Hence there is no requirement for section 206 disclosure statements to include implied warranties and whether or not to include the implied warranties becomes a matter for the owner to decide.

NOTE: Many disclosures prepared by body corporate managers will not include implied warranties.

Why do I have to sign first?

The disclosure statement is designed as a statement from the seller to the buyer about the circumstances of sub-division of the lot. Specifically the intention is to let purchasers know that they will be buying into a body corporate and that comes with specific responsibilities, the most glaring of which is a need to pay levies.