Thinking of selling?

You would not be the first seller who has questioned what their own obligations are as to what they should disclose to potential buyers.

There are some out there who will blatantly hide a defect, like a leak in the roof by giving it a quick once over with a paint brush.

It is wise to think about what your obligations are as to disclosure to your salesperson and to your intended purchaser.

You certainly do not want to have the sales and purchase agreement falling over due to a bad building inspection, or worse, be taken to Court over not being truthful and upfront.

That might cost a whole lot more!

The Commerce Commission in New Zealand deals with breaches of The Fair Trading Act 1986 and any misleading or false representations.

Read more here

Prospective sellers would be advised to research the Real Estate Authority which has uncovered instances where home sellers that have had a very relaxed approach to disclosure when they’re selling have come unstuck.

Their salesperson could be fined for misconduct, if they have not asked for more information if they suspect there is a problem, so when sellers hide defects, there are very real consequences.

Best practice is to be upfront and honest with your salesperson.

Read more here

The importance of disclosure

How some people can justify not disclosing everything about the property because they think the onus is on the buyer, and that the buyer should uncover it if need be as part of their due diligence is incredible.

How fair is that? Why risk the chance of the sale falling over or making the buyer feel disgruntled after spending money on a building report.

So next time you think that it is okay to hide those defects, please think again. Instead, why not think of “paying it forward”, by being upfront and honest.

Who wants to cause another person whether it is your salesperson or the purchaser extra unnecessary grief by not disclosing and doing the right thing?

Do what is right, not what is easy

©2021|||Author| Kathryn