When selling a strata title, completing Form 29 and Form 28 is non-negotiable.
Failing to complete and have these forms signed not only disempowers the buyer, but threatens the success of your client’s sale.
Under the Strata Titles Act 1985 (Sections 69, 69A and 69B), certain notifiable information – including a copy of the unit entitlement, strata plan and by-laws – must be given to the purchaser before entering into a contract to buy. This information is disclosed via Form 29 and Form 28, which detail general and specific information (respectively) about the sale of the strata title or proposed strata title lot.
Too commonly, we receive contracts to buy a strata title in which the Strata Disclosures section is simply left blank – indicating that the necessary information has not been disclosed using Form 29 and 28.
While most agents understand the importance of these forms, those who don’t are risking the entire transaction. Why? Because strata buyers who don’t receive, understand and sign Form 29 and 28:
- Have the right to terminate the contract in accordance with the Strata Titles Act, and
- May have a case to challenge paying the strata levies that failed to be disclosed.
Sellers are likely to hold the agent responsible for any losses incurred due to the lost sale.
Don’t risk letting down your client – ensure that you use Form 29 and Form 28 to disclose the necessary information to buyers of strata titles and proposed strata titles.
Image by Caitlin Childs via Flickr.