Section 223 (2b and 2d) –  Implied Warranties

1. The warranties stated in this section are implied in a contract for the sale of a lot.
2. The seller warrants that, as at the date of the contract—
   1. to the seller’s knowledge, there are no latent or patent defects in the common property or body corporate assets, other than the following—
      1. defects arising through fair wear and tear;
      2. defects disclosed in the contract; and
   2. the body corporate records do not disclose any defects to which the warranty in paragraph (a) applies; and
   3. to the seller’s knowledge, there are no actual, contingent or expected liabilities of the body corporate that are not part of the body corporate’s normal operating expenses, other than liabilities disclosed in the contract; and
   4. the body corporate records do not disclose any liabilities of the body corporate to which the warranty in paragraph (c) applies.
3. The seller warrants that, as at the completion of the contract, to the seller’s knowledge, there are no circumstances (other than circumstances disclosed in the contract) in relation to the affairs of the body corporate likely to materially prejudice the buyer.                         Examples for subsection (3)—
   1. An administrator has been appointed under the order of an adjudicator under the dispute resolution provisions.
   2. The body corporate has failed to comply with the provisions of this Act to the extent that its affairs are in disarray, records are incomplete and there is no reasonable prospect of the buyer finding out whether the warranty mentioned in subsection (2)(b) has been breached.
4. For subsection (2), a seller is taken to have knowledge of a matter if the seller has actual knowledge of the matter or ought reasonably to have knowledge of the matter.

NOTE: 

The Act implies certain warranties in all contracts for sale of community title lots, the breach of which may give rise to cancellation of the contract and/or a claim for damages, a Disclosure Statement is not sufficient to protect against the risk of such breach and a Seller should provide or obtain additional information for disclosure in the contract for that purpose.

We do include some additional information regarding the body corporate which you may find useful. Please note this additional information does not form part of the Disclosure Statement.