What do you have to tell buyers when you sell your Levin home?

Selling a home is easier when you are open about it. Buyers are entitled to make an informed decision, and sellers who share what they know protect themselves from problems after settlement. This guide explains what New Zealand’s government guidance says about disclosure, and what your agent can and cannot do.

What do I need to disclose as a seller?

Settled.govt.nz, the government’s home buying and selling guide, says sellers need to share all relevant information. That includes watertightness issues, boundary issues and unconsented alterations. Both small faults, such as a faulty garage door, and serious ones, such as an unconsented deck, should be raised.

You also need to confirm that the property has the necessary consents and code compliance certificates for building work. Outstanding consents must be disclosed, including consents for work on a neighbouring property.

What does my agency agreement say?

Most agency agreements ask you to confirm that you know of no undisclosed defects and have withheld no information. Read this carefully, and get legal advice before you sign. Our guide to agency agreements explains what else to check.

What does a real estate agent have to do?

Under the Real Estate Agents Act 2008, if a licensed agent suspects a hidden or underlying defect, they must ask you about it or advise buyers of the risk. Examples include a property next to a proposed development, a flood-prone area, or a weathertightness risk because of the home’s age or cladding.

An agent cannot disclose defects without your permission. If you refuse to allow disclosure of important information, the agent must stop working for you. That is why it is best to talk to your agent early and plainly about anything you know.

What happens if I do not disclose something?

Settled.govt.nz says you could face legal action further down the track, and non-disclosure can cause a sale to fall through. The same duties apply to private sales.

Should I fix a problem or disclose it?

That depends on the problem, its cost and your timeframe. Your agent can help you weigh up fixing it first against disclosing it and pricing accordingly. If you will not fix something, buyers need to go into the sale fully informed.

How do I prepare before I list?

• Gather your title, consents and code compliance certificates, and any council records.
• Write down any alterations, repairs and known problems, however small.
• Consider whether a building report or LIM would answer questions buyers will ask. Our guide to rates and LIMs shows what buyers will see in the council’s records.
• Ask your lawyer about anything you are unsure of.

Ready to talk?

Ask for a free appraisal, read our selling guide, or call 06 367 0661. This page is general information, not legal advice, so ask your lawyer about your own situation.

Sources

• Settled.govt.nz: What do you need to know when selling your first house? (disclosure for sellers)