Disclosing Encumbrances Affecting Property
Are you considering selling property in Queensland? Is so..You should be aware of the need to disclose to the buyer any encumbrances that are affecting the property.
Most contracts state specifically that the property is to be provided to the buyer free of all encumbrances other than those disclosed in the contract.
If a seller fails to disclose an encumbrance, then a buyer can sue the seller for the depreciation in the property as a result of the encumbrance.
Some encumbrances are easy to identify, a basic title search will reveal things such as easements or covenants registered on the title.
If they are not going to be removed before settlement, then these must be included in the contract, it's not just enough to attach the title search report to the contract.
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