Smoke Alarms - All is Revealed

One of the most immediate changes is in relation to smoke alarms.

We have covered it before https://bit.ly/3gqMByv but the new requirements for networked smoke alarms right through the habitable areas of the house hardwires or connected by Bluetooth are now being inserted into Sales contracts. You cannot just go out and buy three or four more smoke detectors and put them in any more. Time to face up.

The new clause is 7.8 in the Contract and the provisions are fairly simple:-

1. The Seller must install smoke alarms in any domestic dwelling on the land in accordance with the smoke alarm requirement provision by the settlement date.

2. If the seller fails to comply with clause 7.8 (1) the buyer is entitled to an adjustment at settlement equal to 0.15% of the purchase price but only if claimed by the buyer in writing on before settlement. This is the buyers only remedy for non-compliance with clause 7.8 (1), For a one million-dollar purchase this is going to work out at $1500 per property.

We strongly recommend that you get a quote when you put in the property on the market and have the work carried out.

Lawyers are already working to come up with clauses that can contract you out of these provisions however, in some circumstances that can lead to some harsh legal penalties such as a fine in excess of $600. In addition to the fine that the seller can incur by contracting out fully the Buyer will still be required to install compliant smoke alarms immediately following settlement.

If you are buying for investment you cannot rent a property that is not fully compliant with the new smoke alarm requirement provision.

We have had several years notice that this was coming and First National has widely publicised it to its clients.
 

by David Hamilton 

Director, First National Palm Beach | 0419 763 924

palmbeachfn.com.au February 2021
First National Palm Beach
Ph: 07 5559 9600