PROPERTY MANAGEMENT
Mandatory disclosure of known defects has been a legal requirement for property sales for several years now . More recently , however ( as of February 2022 , to be exact ) this requirement was extended to residential property rentals as well . Rental agents cannot market a rental property without a Mandatory Disclosure Document on file . However , there are still a lot of misconceptions around the purpose and protections afforded by these documents .
What is a Mandatory Disclosure Form ( and what is it not )?
A Mandatory Disclosure Form is basically a summary of a rental property ’ s current condition , with a list of all known property defects . It ’ s compiled by the landlord , to the best of their knowledge . It must be completed and supplied to a rental agent at the time of signing the Mandate Agreement . While it ’ s important to understand what a Mandatory Disclosure Form is that it ’ s equally important to understand what it ’ s not . These documents are not a comprehensive lists of repairs to be rectified by the landlord . In fact , landlords are under no obligation whatsoever to remedy anything listed on the disclosure form unless this is specified – and agreed to – in writing .
Mandatory Disclosure Documents are not a substitute for a thorough ingoing inspection by prospective tenants
Landlords can only disclose defects that they are aware of . Given that very few landlords have personally lived in their rental properties , most rely on feedback from previous tenants or their rental agent about the property issues . Some Landlords do get outside contractors to do an independent Inspection when required .
It ’ s important to know that a Mandatory Disclosure Form is not a substitute for an ingoing inspection . Both ingoing and outgoing inspections are vital – and legally required – elements of the rentals process , and it ’ s in everyone ’ s best interests to attend them .
What should be included on a Mandatory Disclosure Form ?
Guidelines state that Mandatory Disclosure Forms should include ( but not be limited to ) the following :
• Known Material Defects - Any known , material property defects , such as leaks , damp , or faults in electrical , plumbing , swimming pools , pumps , and / or air conditioning etc .
• Recent Repairs - Details on any repairs conducted in the last 12 months , or repairs that are still under guarantee / warranty .
• List of items not in working order - A full list of any items not in working order , including plug points , doors , windows , appliances , security systems etc .
74 REI MAGAZINE AUGUST