May 8, 2012

Landlord Disclosure Statement

Real Estate Excellence is asked on many occasions do we as agents have to disclose deaths (natural or unnatural) that have occurred at rental property to prospective tenants? How do we know the property history?

Recently the Gold Coast Bulletin reported of an incident whereby a tenant is wanting to break their lease due to finding out from neighbours that a meth (drug) lab had been at her property. (this allegedly was not disclosed to her by the lessor or agent).  The Gold Coast Bulletin named the wrong agent in this case which is another point and grossly negligent on their part.

The above has raised the issue of landlord disclosure of a property history. Queensland law requires agents and property managers to take reasonable steps to verify the material facts of a property to avoid error, omission, exaggeration and misrepresentation.

These issues above (and others) raise many issues about landlord disclosure. Particular focus has long been on sellers passing onto information to buyers however the issue in Property Management has long been neglected.

Real Estate Excellence is designing a best practice disclosure statement to be given to landlords at sign up of the management agreement (and to be given at any time for existing landlords to complete).

The disclosure statement required to be made by the lessor (landlord) will include flooding, any known criminal activity, past insurance claims, no legal impediment and much more.

This best practice form will be made available to Members as part of the Mid May Member Update and available afterwards on the Member Dropbox site.

As an industry, we must continually take action to protect our agencies for risk management. We must always remember that we act an agent for the client; and must be seen to have done all we can; to also keep asking the right questions to ensure clear disclosure and protection of all parties to the best of our professional ability.

www.realestateexcellence.com.au

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