Vendors should disclose flood data: Commission

Vendors should disclose flood data: Commission

21 March 2012 by Staff Reporter 2 comments

Steven Cross

Vendors will need to disclose flood-related data as part of changes proposed by the Queensland Flood Commission.

The recommendation urges the Queensland government, in consultation with the Real Estate Institute of Queensland (REIQ) and the Queensland Law Society, to implement a mechanism by which prospective buyers of property are alerted to the issue of flood risk.

However, the REIQ said that if flood data is to be relied upon during the real estate transaction process it must be based on reliable, accurate and cost-effective data which is disclosed by sellers to potential buyers at the outset.

“The REIQ’s proposed seller disclosure document would be made available to buyers prior to a contract of sale being signed and would include such as information as compliant smoke alarms, approved safety switches, pool safety issues, accurate flood data and any material facts, such as building approval searches and certificates, about the property,” CEO of REIQ Anton Kardash said.

According to the REIQ, there has been an increase in the number of different disclosures about a property that must occur, often at different times of the contract process, over recent years. This has resulted in the transaction process becoming bogged down in red-tape.

‘‘The REIQ is seeking a simpler process for both buyers and sellers of residential property,’’ Mr Kardash said.

“In the current transaction process, buyers run the risk of finding out relevant information about a property but being unable to act on it because the contract is already unconditional.

“We need to shift away from the contracts of today with their differing disclosure deadlines to a contract which is only signed once the majority of relevant information about a property has already been disclosed by the seller to the buyer.”

The REIQ's call for a simplified contract process comes not long after Queensland Premier Anna Bligh promised the same thing if she was re-elected this weekend.

Steven Cross

Vendors will need to disclose flood-related data as part of changes proposed by the Queensland Flood Commission.

The recommendation urges the Queensland government, in consultation with the Real Estate Institute of Queensland (REIQ) and the Queensland Law Society, to implement a mechanism by which prospective buyers of property are alerted to the issue of flood risk.

However, the REIQ said that if flood data is to be relied upon during the real estate transaction process it must be based on reliable, accurate and cost-effective data which is disclosed by sellers to potential buyers at the outset.

“The REIQ’s proposed seller disclosure document would be made available to buyers prior to a contract of sale being signed and would include such as information as compliant smoke alarms, approved safety switches, pool safety issues, accurate flood data and any material facts, such as building approval searches and certificates, about the property,” CEO of REIQ Anton Kardash said.

According to the REIQ, there has been an increase in the number of different disclosures about a property that must occur, often at different times of the contract process, over recent years. This has resulted in the transaction process becoming bogged down in red-tape.

‘‘The REIQ is seeking a simpler process for both buyers and sellers of residential property,’’ Mr Kardash said.

“In the current transaction process, buyers run the risk of finding out relevant information about a property but being unable to act on it because the contract is already unconditional.

“We need to shift away from the contracts of today with their differing disclosure deadlines to a contract which is only signed once the majority of relevant information about a property has already been disclosed by the seller to the buyer.”

The REIQ's call for a simplified contract process comes not long after Queensland Premier Anna Bligh promised the same thing if she was re-elected this weekend.

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