Chris owned an apartment in a building on the fringe of the CBD, which had been categorised as “earthquake prone with a low priority” by Council.  The Body Corporate had resolved over the next few years to increase Body Corporate levies to cover earthquake strengthening work.  Chris was therefore keen to sell.  He wanted to make sure he didn’t mislead any purchasers, so asked his lawyer about the things he needed to be aware of.

There is no prohibition on selling an earthquake prone building or an apartment in such a building, however purchasers will be looking for as much information as they can get on this issue before they decide to buy, so it is best to be aware of your obligations as vendor.  Such information will likely include LIM reports and copies of Body Corporate minutes and/or reports received.

Chris will need to make sure:

1. He discloses to the real estate agent and any potential purchasers that the building has been categorised as earthquake prone. 
2. That he passes on any notices he has received from Council relating to this issue.
3. If the purchaser requests Additional Disclosure (a list of information and documents that can be requested) under the Unit Titles Act 2010, that he ensures the Body Corporate provides it within the required time period.