Why Your Sellers Could Face a Shock at Settlement
The 2022 smoke alarm legislation is now in play for properties sold in Queensland. Properties must have interconnected smoke alarms in every bedroom as well as a raft of other requirements.
Buyers and sellers must be aware of the changes to ensure they don’t face the ramifications of non-compliance at settlement. As a sales agent, it is essential to be across the changes to protect your buyers and sellers from the consequences.
Sellers must have compliant smoke alarms in their properties prior to contract signing. Failure to comply may result in the buyer claiming an adjustment at settlement equal to 0.15% of the property purchase price. On a million-dollar home, this equates to $1,500, which could be a shocking cost to the seller at the end of the sales process.
It is beneficial for a seller to comply their property’s smoke alarms at time of listing. This will help ensure compliance before contract and avoid any hidden costs.
Buyers should also be aware of the legislation so they may claim the adjustment prior to settlement if eligible. If a property’s smoke alarms remain non-compliant after settlement it will be the buyer’s responsibility to upgrade the smoke alarm system.
The best indicator that a property is compliant is if there are smoke alarms in each bedroom however it may be worth requesting evidence from the seller of compliance to ensure all requirements are adhered to.
As the the REIQ’s trusted smoke alarm partner, we have been servicing the residential rental industry since 2007. We have created a Sellers Compliance service especially for sales properties needing to upgrade to 2022 smoke alarm requirements.
For just $124 per installed Emerald Alarm, sellers can comply their property’s smoke alarms. If you’re concerned a property will sell especially fast, sellers can add on Smoke Alarms Solutions’ express service for an additional fee of $199 which guarantees a two-business day turnaround. Comply the property with our Sellers Compliance Service here.