For both house buyers and sellers, a disclosure document may be crucial. In general, a disclosure document gives information about any flaws in a property that can lower its value. For example, information on the building’s structure, systems, fixtures, and environmental issues is included in a disclosure form. Sellers who knowingly withhold information risk legal action and possible criminal conviction. You can connect with legal experts if you are considering putting up your commercial real estate for sale in South Australia.
Contracts for commercial real estate sales in South Australia must disclose things like unregistered easements, contamination of the land, official notices, and leases. Depending on the asset class of a commercial property, these items will change, and different states may have different legal requirements that require fulfilment. Although it might be challenging to separate these facts, expert legal counsel can assist sellers in navigating through the pile and guarantee a successful transaction.
Disclosure Obligations for real estate in South Australia
Common laws compel sellers to inform potential buyers of title defects. Easements, covenants, and leases can cause these title issues. A buyer may sue you for damages resulting from your failure to disclose such issues, and the contract may be voided if you do not.
Sellers must transparently make all leases and licences dealing with rights and occupation, including deeds of variation or incentives deeds and rent relief arrangements. Given below is a list of things you must disclose and include.
1. Unregistered easements
Unregistered agreements that grant rights to a third party regarding the property, such as easements or other unregistered agreements, must also be reported.
For example, you may not register overhead electricity lines that cross the land on the title as an easement. Since it is against the law to tear down these powerlines, the sales contract should note this and clarify that it applies.
Many easements, including those for access, services, drainage, and stormwater types, aren’t registered on the title, despite some being quite visible. Therefore, sellers should take particular care in ensuring such disclosures in commercial sales contracts.
2. Contaminated Land Register [CLR] and Environmental Management Register [EMR]
Although you might believe your property is in perfect condition, this is frequently untrue. The common commercial assets listed on these registries include landfills, livestock sale yards and dipping operations, as well as former or current gasoline stations.
Most of the time, these records are freely accessible online. Therefore sellers should be aware if their property appears on one of these registries.
3. Notices issued by authorities
Regarding compliance with laws, authority notices may also be crucial. Include any notices the Environmental Protection Agency may have issued requesting the remediation of a particular pollution. In addition, inform of any alerts you receive from a government agency, council, or other authority.
4. Tenant’s first right of refusal
In light of the necessity of reporting agreements that confer rights on a third party, landlords should confirm whether their leases allow tenants the first right of refusal. Check to determine if your tenant has the first option. The lease may occasionally state that the landlord must make the property available to the tenant before selling it.
5. Who can use your property
Strange as it may seem, you can allow someone to use your property while charging you a fee. Some property contracts, however very uncommon, allow the use of government infrastructure such as telecommunication towers on the property. But this property will pass on this source of income to whoever purchases it. This is when a contract’s stipulations come into play, so the seller should seek legal counsel to determine how to proceed.
To Conclude,
If you are looking to manage or lease residential or commercial real estate property for sale in South Australia, get in touch with skilled, experienced real estate leaders.
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