Does this stuff ever come up if I try to sell my place?

Posted 20 May 2024

Category: NCAT and Court Proceedings, eBooks

If you fail to comply with an order of the Tribunal, it may have implications when you try to sell your property, especially if the order pertains to the property itself or the strata scheme. Here are a few ways in which non-compliance can impact a property sale:

• Strata Records Inspection: Prospective purchasers often request an inspection of strata records. These inspections can reveal any disputes, Tribunal orders, or non-compliances related to the property. If the records show an outstanding order of the Tribunal or non-compliance with an order of the Tribunal, it may raise concerns for the purchaser or influence their decision in a negative way.
• Financial Liabilities: Some Tribunal orders may result in financial obligations. For instance, if an owners corporation is ordered to carry out rectification of common property defects and does not have sufficient funds to cover the cost of these works, substantial special levies may be raised. If you have not complied with these obligations, they could potentially become encumbrances on the property, which would be evident during a title search. An example of this would be if you fail to make payment of the administrative and capital works fund levies for your property, an owners corporation may apply for a writ to be recorded on the title of your property.
• Repair or Modification Orders: If the order of the Tribunal pertained to specific repairs or modifications to the property, and these have not been carried out, the physical state of the property might not meet the expectations of prospective purchasers. This can affect the property’s perceived value.
• Disclosure: Depending on jurisdiction and specific transaction circumstances, vendors might have a duty to disclose certain information to potential purchasers. If an outstanding Tribunal order is deemed to be material information that a reasonable purchaser would want to know, failure to disclose can have legal implications.
• Potential for Further Action: If you have not complied with an order of the Tribunal and are selling the property, there might be potential for the aggrieved party or the strata scheme to take further action. This could complicate or even delay the sale process.

It is crucial to address and comply with orders of the Tribunal promptly, especially if they relate to property or strata matters. If you are considering selling your property and are aware of an outstanding order of the Tribunal, we recommend that you obtain further legal advice regarding the implications on the potential sale of your property.

This is an extract from our Bannermans NCAT Strata Disputes ebook.

To access more FAQ'S on NCAT Strata Disputes fill in the below form to download our Bannermans NCAT Strata Disputes ebook for free.