The mandatory disclosure form, explained for sellers
, 5 minute read
Since the Property Practitioners Act came into force in February 2022, every seller who uses an agent has to complete a mandatory disclosure form. It lists what you know about the condition of the house, and it travels with the sale.
What the law says
Section 67 of the Act says an agent may not accept a mandate until the seller has given them a completed and signed disclosure form. The agent must then give a copy to anyone who wants to make an offer.
The form has to be signed by the relevant parties and attached to the sale agreement, where it becomes part of that agreement. If it is not, the agreement is read as though the seller disclosed no defects at all.
What it asks about
- Roof leaks, damp and rising damp
- Electrical, plumbing and drainage problems
- Structural cracks and boundary issues
- Additions or alterations without approved building plans
- Anything else you know of that a buyer would want to know
Why being thorough protects you
Disclosing a known problem does not stop a sale. Buyers expect older houses in Melville or Linden to have stories. What causes trouble later is a problem that was known and left out. A clear form also makes negotiations simpler, because the price already reflects what the buyer has been told.
The form covers what you know. It is not a building inspection, and a buyer may still arrange an inspection at their own cost before the deal is final.
How we handle it
We sit down with you and go through the form room by room, usually during the valuation visit. We ask about plans for any additions, check what compliance certificates exist, and note anything that needs a contractor's opinion. You sign it once you are happy it is complete. If you are thinking of selling, book a valuation visit and we can start there.
This is general information, not legal or tax advice. Check the details with your conveyancing attorney before you sign.