When your client signs a sales agreement they will now be asked material facts questions. FLK will then add a back page to the sales agreements with the answer to these questions. If they answer yes to any questions the client is required to provide further details. Any YES answers will be displayed and shown in the "awaiting completion" email sent to you and also in summary at the top of the agreement.
Clause 9 of the terms and conditions has been updated to the below to reflect the capturing of the material facts questions:
The Vendor acknowledges that pursuant to the Act, the Licensee is required to disclose all “Material Facts” relating to the Property to any prospective or actual purchaser.
The Vendor warrants that they have provided to the Licensee all information which may be considered a “Material Fact” in relation to the Property and they have completed the Material Fact disclosure document which forms part of this Agreement.
The Vendor warrants that if they become aware of any further information that may be considered a Material Fact after entering into this Agreement they will immediately provide that information to the Licensee.
The Vendor authorises and directs the Licensee to disclose anything which may be a “Material Fact” in relation to the Property to any actual or prospective purchaser of the Property.
The Vendor indemnifies the Licensee against all actions, claims and demands brought against, and all costs, losses and liabilities incurred by the Licensee arising from or connected with a failure on the part of the Vendor to disclose a “Material
Fact” or as a result, howsoever caused, of the Vendor providing false, misleading or deceptive information to the Licensee.
Sample of the "material facts questionnaire" questions are below:
MATERIAL FACT DISCLOSURE
This disclosure is to be read in conjunction with clause 9 of the Agreement.
In accordance with the requirements pursuant to section 52(1)(b) of the Property and Stock Agents Act 2002 and Regulation 54 of the Property and Stock Agents Regulation 2014, please disclose whether the following material facts are applicable to the property the subject of this agreement.
1. Has the property been subject to flooding from a natural weather event or bush fire within the last 5 years?
2. Is the property subject to significant health or safety risks?
3. Is the property listed on the register of residential premises that contain loose-fill asbestos insulation that is required to be maintained under Division 1A of Part 8 of the Home Building Act 1989?
3.a. Has the property been renovated since it was originally built?
3.b. Are you aware of the presence of any loose-fill asbestos insulation in the property?
3.c. Has a Licensed Asbestos Assessor inspected the property for loose-fill asbestos insulation?
3.d. Do you know what date the property originally was constructed? If yes, please supply details
4. Has the property been the scene of a crime or murder or manslaughter within the last 5 years?
5. Has the property been used for the purposes of the manufacture, cultivation or supply of any prohibited drug or prohibited plant within the meaning of the Drug Misuse and Trafficking Act 1985 within the last 2 years?
6. Is the property, or is part of the property, a building that contains external combustible cladding?
6.a. Is there a notice of intention to issue a fire safety order or a fire safety order has been issued requiring rectification of the building regarding the external combustible cladding?
6.b. Is there a notice of intention to issue a building product rectification order or a building rectification order has been issued requiring rectification of the building regarding external combustible cladding?
7. Is the property, or is part of the property, a building where a development application or complying development certificate application has been lodged under the Environmental Planning and Assessment Act 1979 for rectification of the building regarding external combustible cladding?
8. Is the property, or is part of the property, a building that is the subject of a building work rectification order, a prohibition order or a stop work order, as defined in the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020?
9. Are there any other matters affecting the property that you feel needs to be disclosed?
Building product rectification order has the same meaning as in the Building Products (Safety) Act 2017.
External combustible cladding and fire safety order have the same meanings as in the Environmental Planning and Assessment Regulation 2000