Undisclosed Property Issues
The client has signed a contract to purchase a house in a certain location in Western Australia and is now facing an issue related to undisclosed former activities on the property. This information about the property's background was only revealed shortly before the closing date. The client is concerned about the lack of disclosure regarding this significant issue and seeks clarification on potential legal actions or implications. The primary legal matters at play include Real Estate, Contractual Dispute, Disclosure Issues, and Contract Law. The client is looking for guidance on how to address this situation within the legal framework of Western Australia.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkWhat are our options if the seller did not disclose known issues in the property before signing the contract?
In Western Australia, if the seller failed to disclose known issues in the property, you might consider negotiating with the seller for a solution, such as a reduction in the purchase price or remediation of any health or safety issues caused by the undisclosed information. This approach can be beneficial if you wish to proceed with the purchase despite the non-disclosure. Furthermore, consulting the contract terms may reveal if there are any specific clauses regarding undisclosed defects or misrepresentations that could allow for renegotiation. Review local guidelines for better understanding of your rights and the seller's obligations.
Can we legally withdraw from the contract or delay settlement due to this non-disclosure?
In Western Australia, you may be able to withdraw from the contract or delay settlement if the non-disclosure significantly affects the property's value or constitutes a misrepresentation. Generally, sellers must disclose material facts that could influence a buyer's decision. If the contract has a clause requiring full disclosure, you might have grounds to terminate or renegotiate. Review your contract for any relevant clauses and consider obtaining a legal opinion. It's advisable to act promptly before settlement to exercise any rights.
What obligations does the seller have regarding disclosing known issues with the property in Western Australia?
In Western Australia, sellers are generally required to disclose any material facts they are aware of that could affect the buyer's decision to purchase the property. This duty is particularly relevant if the property has a history of issues that could impact its safety, value, or insurability. The seller's obligation is grounded in principles of misleading or deceptive conduct under relevant laws. Failure to disclose such critical information can potentially lead to legal consequences for the seller.
Could this non-disclosure impact the value or future sale of the property, and how should we address this?
Non-disclosure of known issues in a property can negatively affect its market value and future resale potential, as such issues may deter potential buyers or raise concerns about safety. It is advisable to obtain a professional property inspection to assess any potential risks. You may consider negotiating with the seller for a reduction in the purchase price or for them to cover remediation costs. Consulting with a legal professional can help explore potential claims for misrepresentation or compensation.
Are there any legal remedies or compensation available to us as the purchasers for this non-disclosure?
In Western Australia, if a seller fails to disclose a material fact about a property, purchasers may seek legal remedies. You might be entitled to compensation if the non-disclosure caused you financial loss. Remedies can include damages for misrepresentation or misleading conduct under relevant laws. Additionally, if the property requires remediation due to undisclosed issues, you could claim costs associated with making it safe. It's advisable to consult a solicitor to evaluate potential claims thoroughly.
