Recording and disclosure requirements
Real estate agents have record keeping and disclosure requirements related to pre-purchase property inspection reports. The reports are:
- a building inspection of the property
- a pest inspection of the property
- an inspection of documents about the property under section 108 of the Strata Schemes Management Act 1996
- a certificate dealing with financial matters under section 109 of the Strata Schemes Management Act 1996
- an inspection of documents about the property provided for under section 26 of the Community Land Management Act 1989.
The reports concerning strata schemes are generally known as a ‘strata search’.
They only need to provide this information when the prospective buyer asks for the sale contract for the property.
Information to record for each report
Agents must record the following details for each report:
- the date on which the inspection was conducted
- who requested the report
- who prepared the report with their business contact details
- whether the report author has professional indemnity insurance
- whether the report is available for re-purchase.
Go to the <frequently asked questions – property inspection reports page> for practical assistance in complying with the requirements.
Penalties of up to $4,400 will apply to a corporation and up to $2,200 in any other case where there is non-compliance with these record keeping and disclosure requirements.
Record keeping requirements for property reports come under clause 33A of the Property, Stock and Business Agents Regulation 2014. Go to the property reports and commercial exemption reforms page for an overview of the 2016 amendments to the Regulation.