Real Estate Training - Seller Disclosure

Seller Disclosure in Queensland - a Best Practice Article

 Salespeople are the conduits of information when it comes to listing and selling property. Simply this means that the role of a saleperson is to pass relevant information obtained from the seller onto the buyer.

The conduit role begins with title searches being carried out and should be conducted at time of listing property for sale (and rent). The PAMD Real Estate Agency Practice Code of Conduct sections 22 and 23 set out the legislative obligations of agents (see below).

Title searches not only identify the legal owners of the property authorised to sell, but also to identify any encumbrances or other material facts that should be passed on to prospective buyers at time of marketing and prior to contract. If pertinent matters are not passed on to the buyer, allegations of error and or misrepresentation can be made against the agency. It is recommended that title search at cost be a pro forma on all listing appointments and that the client pays for the service.

A further critical procedure is to ensure upon listing the property for sale (and anytime after listing as required), to seek written disclosure from the seller in relation to material facts relating to the property. For example, Real Estate Excellence has a best practice disclosure statement that is recommended to be given to sellers at time of listing (available to Members). This best practice disclosure document is recommended to be completed and signed by the seller at time of listing and added as an attachment or placed in the sales listing file.

The information would be reconfirmed at time of contract such as asking if there are any matters relating to trees or fencing that the buyer should be made aware of.

22 Finding out or verifying ownership and property description

Before listing property for sale, lease or exchange, a real estate agent must take reasonable steps to find out or verify the property’s ownership and property description.

23 Finding out or verifying material facts

(1) A real estate agent appointed to sell, purchase, exchange or lease property must take reasonable steps to find out or verify the facts material to the sale, purchase, exchange or lease that a prudent real estate agent would have found out or verified toavoid error, omission, exaggeration or misrepresentation.

(2) The steps must be taken before the agent lists the property and afterwards as the occasion arises.

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