When buying or selling a property, ensuring compliance with smoke alarm regulations is a crucial part of the process. In Queensland, Clause 7.8 of the standard REIQ contract outlines the obligations of both buyers and sellers regarding smoke alarm compliance. Understanding these obligations can help avoid unexpected costs, contract disputes, and potential settlement delays.
Seller’s Obligations: Disclosure and Compliance
Sellers are legally required to disclose whether the property has compliant smoke alarms installed. However, they are not obligated to provide a smoke alarm compliance certificate to the buyer. That said, if it’s later discovered that the seller provided incorrect or misleading information, the buyer has rights under non-disclosure provisions. This could include:
- The right to seek compensation for non-compliance.
- The right to terminate the contract at any point up to and including settlement.
This highlights the importance of ensuring that all information provided at the time of signing is accurate. Failing to do so could result in financial penalties or even the cancellation of the sale.
Buyer’s Rights: Inspections and Adjustments
Buyers also have specific rights under Condition 8.2 (5) of the contract. These include:
- The right to inspect the property once before settlement to check if the smoke alarms meet compliance standards.
- The right to claim an adjustment of 0.15% of the purchase price if the smoke alarms are non-compliant.
To claim this adjustment, the buyer (or their representative) must notify the seller’s solicitor in writing before settlement. This can result in a financial deduction from the purchase price to cover the cost of bringing the smoke alarms up to code.
Why Compliance Matters
Smoke alarm compliance isn’t just a legal requirement—it’s a safety issue. Queensland laws are strict when it comes to smoke alarm standards, and properties must meet the latest safety regulations to ensure adequate protection for occupants.
For sellers, ensuring compliance before listing the property can prevent last-minute contract issues. For buyers, understanding their rights ensures they aren’t left covering unexpected costs after settlement.
Key Takeaways
- Sellers must disclose whether smoke alarms are compliant but are not required to provide a compliance certificate.
- Incorrect disclosure can give buyers the right to claim compensation or terminate the contract.
- Buyers can inspect the property before settlement to confirm smoke alarm compliance.
- If alarms are non-compliant, buyers can request an adjustment of 0.15% of the purchase price.
If you’re buying or selling a property, ensuring compliance with smoke alarm laws is essential. Need guidance? The Property Baron is here to help buyers navigate the fine print and secure the best outcomes in every transaction.