Smoke Alarm

Smoke Alarms, RCDs and Settlement

Selling a property? By ensuring you have RCDs and smoke alarms installed before settlement, you can save yourself up to $20,000 in fines.

Unfortunately, a recent settlement has revealed that not all sellers understand the implications of current state law. Our client, a seller, indicated that they had the correct RCDs and smoke alarms installed in their property – and we proceeded to settlement. (Due to the significance of smoke alarm and RCD legislation, we require all sellers to sign and return an official declaration that the correct devices are installed.)

But when the transaction was completed and the new owners moved in, they found that the house was only equipped with one RCD and one battery-powered smoke alarm!

Current state law requires that all houses for sale or rent have:

  1. Two Residual Currency Devices (RCDs), and
  2. At least one hard-wired smoke alarm, depending on the layout of the property.

These devices must be installed before settlement.

The seller now faces combined fines of up to $20,000 – up to $15,000 for improper RCDs and up to $5,000 for inadequate smoke alarms.

Don’t get caught out! Be completely sure that the correct devices are installed in your property before you sign the declaration and before settlement.

Image by Katy Warner via Flickr.