When selling a property, transparency and honesty are crucial, not only for ethical reasons but also for legal compliance. In the context of real estate, the term "material facts" refers to specific information that could influence a buyer's decision to purchase a property.
Here’s a detailed look at what sellers in areas like Mona Vale need to know about material facts.
What are material facts?
Material facts are any details about a property that could significantly impact a buyer's decision. Your agent must disclose these facts to potential buyers to avoid any misrepresentation. According to Fair Trading NSW, material facts can include:
• Property defects: Structural issues, water damage, or pest infestations.
• Historical events: Incidents such as murders or suicides that occurred on the property.
• Legal issues: Zoning restrictions and any issues with neighbours. Ongoing disputes with neighbours, for example, over property boundaries or noise complaints, should be disclosed.
• Environmental hazards: The presence of asbestos, contamination, or flood-prone areas. If the property is listed on the loose-fill asbestos insulation register, this must be disclosed due to health risks.
Legal obligations of home sellers
In NSW, sellers are legally obligated to disclose material facts to their real estate agents and potential buyers. Not doing so can result in legal consequences, including the possibility of the sale being overturned.
What is the role of my real estate agent in this?
As your real estate agent, our job is to navigate these legal obligations and ensure that a sale proceeds smoothly with all boxes ticked. We will apply common sense and use our professional judgment to determine what constitutes a material fact to ensure compliance with legal requirements and protect our clients.
Case study: Neighbour dispute
Consider a scenario where a seller decides to move because of a difficult relationship with a neighbour. They disclose this to their real estate agent, who must then decide whether this is a material fact. In one instance, the real estate agent was asked by a potential buyer if there were any issues with the neighbours. The agent was aware of the previous issues and informed the buyer accordingly. The buyer went ahead with the purchase and later developed a good relationship with the neighbour, even helping them with construction work. This example highlights that while neighbourly disputes might be considered material facts, their disclosure may not influence the selling process – but it’s important to be aware of them.
Choosing to go ahead with a sale
As a seller, it’s essential to choose an agent who is experienced in your area, has dealt with many different selling scenarios, is on your side and can judiciously handle sensitive information. A good agent will not only provide expert advice but will also help maintain a balance between legal compliance and practical discretion.
Understanding and disclosing material facts are essential steps in the home-selling process. If you choose us to sell your home, we can help navigate these complexities and ensure that all material facts are appropriately disclosed. This protects the interests of both seller and buyer, and helps all parties to ultimately achieve a successful property sale.
Do you have any questions about selling your home?
If you want to sell your home on the Northern Beaches, reach out to LJ Hooker Mona Vale today. We’re highly experienced in selling homes in this area and can guide you on the types of material facts that we should provide to potential buyers, as well as any other questions you might have. Feel free to get in touch with us today.