Selling an Apartment or Townhouse
Legal considerations for selling your Melbourne apartment or unit
Navigating the sale of communal living spaces such as apartments, units, or townhouses involves distinct legal responsibilities when compared to selling a standalone property, each impacting the sale process and outcome. In this guide, we delve into essential factors every seller needs to know.
Outline common property
Clarifying common property areas, like gardens, pools, and gyms, within the Plan of Subdivision helps potential buyers understand the full extent of the property. Being aware of communal areas and shared spaces also enhances the property's appeal.
Insurance obligations and levies
Ensure the Owners Corporation has met its insurance obligations, covering common areas adequately. Disclose any special levies and the state of any legal disputes involving the Owners Corporation. The buyer will also need to know whether building insurance is collective or requires individual policies. Providing this information is required for full transparency.
Adhering to Owners Corporation rules
The Owners Corporation may set rules affecting living conditions and property modifications. Sellers need to inform potential buyers about these rules, particularly if restrictions on pets or renovations exist. The rules may influence the decision to buy.
Insights from Owners Corporation meetings
Sharing the minutes from the most recent Owners Corporation meeting can offer invaluable insights into the property's management, any upcoming changes, or issues that might affect a new owner's enjoyment or use of the property.
Your pre-sale checklist for selling an apartment or townhouse
Our expert property lawyers have put together the following checklist to ensure compliance when selling a townhouse, unit, or apartment:
- Seek out legal advice
- List chattels and fixtures
- Provide land measurements
- Confirm restrictions and easements
- Disclose any renovations and recent building work
- Provide details of any lease agreements
- Outline rates, taxes, and outgoings
- Check zoning and town planning
- Decide on auction or private sale
- Check Certificate of Title
- Consider capital gains tax.
Selling a communal property requires attention to unique details, ensuring buyers are fully aware of their rights, responsibilities, and the living conditions they're buying into. Transparency and thorough disclosure are key to a successful and compliant sale.
Please note: The information covered in this guide is general and should never be substituted for professional legal advice. Contact us for further information.