Our office will be closed from 5.00 pm on Friday 22 December 2017 and re-opening at 8.30 am on Monday 8 January 2018.
The staff at Argon Law wish you a happy and prosperous Christmas and New Year.

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. 

More Information

Are you considering selling property in Queensland?

If so, you should be aware of the need for you to disclose to buyers the existence of encumbrances affecting the property.

Most contracts specifically provide 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 the buyer can terminate the contract at any time before settlement or sue the seller for the reduction in the value of the land resulting from the encumbrance.

Some encumbrances are easy to identify.  A basic title search will reveal things like easements and covenants registered on the title.  If they are not going to be removed before settlement, then these must be set out clearly in the contract.  It is not enough to just attach a copy of the title search to the contract.

Other encumbrances can exist without being registered on the title.  These include the rights that some authorities have to enter land to maintain their infrastructure, such as pipes and water mains that run through the land.

And when chattels are sold with the land under the same contract, encumbrances can also exist in the form of charges over those chattels.

If you have any queries about this or any other aspect of preparing your contract then please contact us on 07 5443 9988 or[email protected].

Argon Law is a Sunshine Coast law firm based in Maroochydore.  We are commercial lawyers and property lawyers and are eager to assist you in any way we can.

VIEW ALL VIDEOS

View Youtube channel youtube.com/ArgonLawMaroochydore

Call: 07 5443 9988 or
Leave a comment or make an enquiry about Disclosing Encumbrances Affecting Property

To prevent automated spam submissions leave this field empty.

All rights reserved | Argon Law © Copyright 2017 Website by VA