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Ignorance isn’t always bliss

Greta Andrews-TaylorThe West Australian
REIWA President Damian Collins.
Camera IconREIWA President Damian Collins. Credit: Supplied.

You have found a home which ticks all your boxes, but upon further inspection and information provided by the seller, it may not be as ideal as you once thought.

Whether the information is a deterrence or it doesn’t manage to sway your view, it is still up to the seller to disclose any information on the home to a certain degree.

Although there are no laws currently existing in Western Australia which require agents to disclose the full history of a home, agents do have to take steps to ensure potential buyers are properly informed.

“There is a statutory obligation on agents to make reasonable efforts to ascertain or verify all facts material to the transaction and disclose those facts to prospective buyers and tenants before entering into a contact for sale or lease,” REIWA President Damian Collins told West Real Estate.

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“Determining whether something is material falls upon the real estate agent.

“A material fact is any fact, if known, would impact on the buyer or tenant’s willingness to enter into the transaction or the agreed price.”

Mr Collins said as the selling agent may not be aware of all the information regarding a property and what constitutes a material fact was not always known, the laws were currently grey.

Despite this, there have been some developments to make these issues a bit easier to navigate and avoid.

“Recently we have seen changes to strata laws, which require more disclosure to prospective buyers of strata properties,” Mr Collins said.

“I expect in the longer term we will end up with a compulsory seller disclosure document completed by the seller, which must be provided to prospective buyers.”

With the disclosure of material information, should the potential buyer want to double check information or potentially find out more, there are ways to complete personal research.

“The buyer can also do some digging online by searching the property address to be extra sure, as well as doing their own checks with the local council and neighbours, who may have some information,” Mr Collins said.

Although purchasing and living in a home with an unpleasant history perturbs many people, this is not the case for some. Buyers may see it as an opportunity to purchase a home at an ideal price in a great suburb.

“For some a murder at a property would be a dealbreaker but for others it can present an opportunity to buy at a great price in the suburb of their choosing,” he said.

Although criminal activities at a home can decrease its value, the history of a home does not mean it will always be worth less than the other homes in the street.

“This depends on the notoriety of the crime and the length of time passed. As time passes the impact on prices seems to have less of an effect,” Mr Collins said.

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