There are many issues to consider before you decide to list your property on the market for sale.
One important issue arises if the property has a swimming pool or spa.
Under the Regulations, any Contract for the sale of a property which has a swimming pool or spa must include a valid certificate of compliance (or non-compliance) as well as a valid Registration Certificate issued by the NSW Government. If the required certificates are not annexed to the Contract, the purchaser has the entitlement to rescind the Contract and receive a full refund of the deposit.
Prior to listing your property for sale, a vendor should ensure that the swimming pool or spa has a valid Registration Certificate. The registration process can be completed online at https://www.swimmingpoolregister.nsw.gov.au/.
Once the pool is registered, a vendor needs to arrange for the local council or for a private pool certifier to inspect the pool and issue either:
- A Certificate of Compliance; or
- A Certificate of Non-compliance.
- A Certificate of Compliance is valid for three years.
- A property can still be marketed and sold if a Certificate of Non-compliance is issued. The inspector will provide a list of the necessary works to be completed in order for the non-compliance to be rectified.
- It is then a matter for the Purchaser to accept the risk of that non-compliance and the responsibility for completion of the required works to obtain a Certificate of Compliance then passes to the purchaser on settlement. The Certificate of Non-compliance allows the Purchaser 90 days from the date of settlement to carry out the required works.
- If a private certifier issues the Certificate of Non-compliance, then the certifier is obliged to notify the local council within 14 days of issuing the Certificate, if the works to rectify the structures have not been carried out during that period. This could subject a vendor to the risk of your local council issuing a rectification order against the property in relation to those works and this could also impact upon the sale.
- In circumstances where a Certificate of Non-compliance has been issued, a vendor may decide to arrange for the works to be completed and then annex the Certificate of Compliance to the Contract. Completion of the Contract can be made conditional on the required works being completed.
The Swimming Pool Act 1992 also allows for an occupation certificate to be annexed to the Contract in place of a Certificate of Compliance if that occupation certificate is less than three years old and authorises the use of the swimming pool or spa.
If you are considering selling or purchasing a property and you would like to know more, please do not hesitate to contact our dedicated team of lawyers and conveyances on 9525 8688 or email firstname.lastname@example.org. Please also feel free to download our free Property eGuide.