Today we're talking about the strengthened information disclosure requirements and new material facts that landlords are required to disclose to tenants. A landlord or agent must not make false or misleading statements, or knowingly conceal certain material facts from a prospective tenant before they sign a lease agreement.
The list of material facts is published on the tenant information statement that a landlord or property manager must give a tenant before entering into a tenancy agreement.
Before signing a lease a landlord or property manager must also tell a tenant of any proposal to sell the property, or if the landlord has prepared a contract for sale, or if a mortgagee or other lender is taking court action for possession of the property.
The list of material facts and information that prospective tenants must be told before entering into a lease has been expanded. The changes to the act also provide a remedy for tenants when material facts and information aren't disclosed.
Disclosures that must be made to the tenant include whether the property is planned to be sold, subject to court proceedings where the mortgagee is trying to take possession of the property, or in a strata scheme and a strata renewal committee is currently established for the strata scheme.
Material fact disclosures were already in the residential tenancies act, but the list of material facts that now needs to be disclosed to a tenant has been expanded.
The landlord or agent must tell a tenant if they're aware of any of these facts: if the property has been subject to flooding from a natural weather event or bush fire in the last five years, has significant health or safety risks unless it's obvious, to a reasonable person when the property is inspected, has been the scene of a serious or violent crime.
For example, a murder or aggravated assault, in the last five years , is listed on the loose. Fill asbestos insulation register, has been used to manufacture or cultivate a prohibited drug or prohibited plant in the last two years, is part of a building where a fire safety or building products rectification order, or a notice of intention to issue one of these orders, has been issued regarding external combustible cladding, is part of a building where a development or complying development certificate application for rectification has been lodged regarding external combustible cladding, is in a strata scheme where scheduled rectification work or major repairs will be carried out to the common property during the fixed term of the agreement, is affected by zoning or laws that will not allow you to obtain a parking permit and only paid parking is available in the area, or is provided with any council waste services that are different to other properties in the council area, or finally, has a driveway or walkway that others can legally use and you need to share. So before a lease is signed the landlord or property manager must also give to give the tenant a copy of the strata scheme's by laws.
A tenant is able to end their tenancy agreement by giving at least 14 days notice if the landlord or agent fails to comply with any of the information disclosure obligations. A tenant can also apply to the tribunal for an order to end the tenancy.
The tribunal also has the discretion to order the landlord to compensate the tenant for any costs incurred as a result of ending the tenancy agreement early. If you'd like any further information about any of the new laws and how they apply to you, please feel free to be in touch with us. We'd be happy to help.
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