The Queensland government amended legislation to make it mandatory for sellers of residential property to complete and sign a sustainability declaration from 1 January 2010. The legislation which was amended is the Building Act 1975 (Qld) and the Property Agents and Motor Dealers Act 2000 (Qld). These changes have had a significant impact on the sellers of residential property in Queensland, and the real estate industry.
From January 1st 2010 every seller of a property in Queensland has had to fill in a 2 page Sustainability Declaration. In an “innovative and nation-leading sustainable housing policy” our Minister for Infrastructure and Planning has introduced a mandatory Sustainability Declaration. From January 1st 2010 every seller of a residential dwelling in Queensland has to fill in the 2 page checklist.
You won’t be able to advertise your property for sale until you have a Sustainability Declaration completed and signed by yourself. Your agent is required to display it at open homes and advertise to prospective buyers that it’s available. The penalty for not doing this will be $2000 for you and $10,000 for your agent.
What is a Sustainability Declaration?
A sustainability declaration is a compulsory checklist that must be completed by the seller when selling a house, townhouse (class 1a buildings) or unit (class 2 building) from 1 January 2010. The declaration informs buyers about the sustainability features of a property and increase community awareness of the value of such features. The declaration identifies the dwelling’s environmental and social sustainability features in four key areas: • energy • water • access • safety
Why was this introduced?
There was growing concern about the impacts of climate change and the need to improve existing housing stock. Encouraging prospective buyers to make informed choices about the sustainability performance of residential buildings is becoming increasingly important. Properties with a greater number of sustainability features potentially have lower energy costs and use less water. They can also be more comfortable to live in and generate fewer greenhouse gas emissions. Homes with access features may be more liveable for occupants during their various life stages and the inclusion of safety features can reduce potential risks around the home. The declaration aims to increase awareness about sustainable housing features when a property is marketed for sale. It also promotes possible ongoing financial and environmental benefits that could be achieved with specific features. It is anticipated that the declaration will help promote the sustainability of a home and become a key marketing tool for real estate agents and private sellers.
The major impacts for sellers and real estate agents are summarised below:
• It is mandatory for sellers to complete the statutory sustainability declaration form before their property (any residential home or unit) is marketed for sale (either through private sale or with an agent). This requirement applies to all properties being marketed.
• The seller or agent must not publish a relevant advertisement unless the advertisement includes information about where a person may obtain a copy of the sustainability declaration.
• The seller or agent cannot give a prospective buyer a brochure (or other similar document) marketing or advertising the sale of the property unless the person has been given either a copy of the current sustainability declaration OR a copy of the declaration accompanies the document;
• At any time the property is open for inspection (by either the seller or agent) the sustainability declaration must be conspicuously displayed so prospective buyers entering the property can view the declaration. If the property is an inspection by appointment (as opposed to an open house), the prospective buyer must either be given a copy of the declaration prior to entering or the declaration must be conspicuously displayed during the inspection time;
• If a prospective buyer requests a copy of the declaration, the seller or agent must give them a copy as soon as practicable. This can be supplied electronically;
• If a buyer incurs a loss or expense because the seller provides a false or misleading declaration or the document is not prepared with reasonable skill and care, the seller may be liable to compensate the buyer for the loss or expense;
• The buyer will have no right to terminate a contract if the declaration is incomplete or contains information that is false or misleading
Absentee sellers, including investors, may have to engage a suitably qualified third party to complete the declaration on the seller’s behalf. The Building Act imposes a legislative duty on all sellers of residential houses and units in Queensland to complete the declaration or to appoint a representative, or third party such as a builder to complete the form. It is important to note that the Building Act requires the seller to sign the form. The signing of the form cannot be delegated to a third party, other than a duly authorised person legally, such as through a power of attorney.
For full details, visit the Department of Infrastructure and Planning website www.dip.qld.gov.au