Selling a unit titled property involves specific requirements and obligations that sellers and real estate agents must adhere to. While it may seem that smaller unit titled properties have more flexibility, it is essential to understand that there are legal regulations governing them. This guide outlines key considerations for selling unit titled properties and provides an update on the forthcoming Unit Titles Amendment Bill, aimed at addressing certain issues within the industry.

Key Considerations for Selling a Unit Titled Property:

1. Legal Obligations:

   • The term “non-functioning Body Corporate” has no legal standing. All disclosure rules apply to smaller Bodies Corporate just as they do to larger ones.

2. Unit Titles Act 2010:

   • All unit titled properties, regardless of size, are governed by the Unit Titles Act 2010, with unit owners forming the Body Corporate.

3. Essential Tasks for a Body Corporate:

   • Maintain a register of unit owners.
   • Establish an operating account for levies and insurance costs.
   • Ensure comprehensive insurance coverage for the development.
   • Manage and maintain common property.
   • Implement a Long-Term Maintenance Plan.
   • Provide disclosure statements when a unit owner sells their property.

4. Exemption for Smaller Bodies Corporate:

   • Bodies Corporate with nine or fewer units are exempt from the requirement to have a Body Corporate committee.

5. Disclosure Regime:

   • Separate from general disclosures required by real estate agents, sellers must adhere to the Act’s disclosure regime.
   • Provide purchasers with a Pre-Contract Disclosure Statement.
   • Offer a Pre-Settlement Disclosure Statement and insurance details, typically five working days before settlement.

6. Pre-Contract Disclosure Statement:

   • Sellers must furnish a Pre-Contract Disclosure Statement to purchasers, containing specific details outlined in Unit Titles Regulations.

7. Pre-Settlement Disclosure Statement:

   • This statement must be signed by the Vendor and confirmed by the Body Corporate. If no chairperson or committee exists, all owners must sign it.
   • The Pre-Settlement Disclosure Statement informs purchasers about levies and other relevant purchase details.
   • The Agreement for Sale and Purchase can be delayed or canceled if this statement is not provided within five working days of settlement.

8. Deposit Handling:

   • Real estate agents must retain the deposit until the Pre-Settlement Disclosure Statement and any Additional Disclosure Statement (if requested) are provided.

The sale of unit titled properties involves distinct legal requirements and complexities that sellers and agents should understand thoroughly. Staying informed about upcoming changes, such as those introduced by the Unit Titles Amendment Bill, will help ensure smoother transactions and prevent delays or cancellations.