Alexander and Associates
Solicitors
Suite 12, Level 10
“Leura” Building
809 Pacific Highway
CHATSWOOD NSW 2067

Tel: (02) 9413.2600

Fax: (02) 9419.8872

On-site parking via Brown Street car park entrance.

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Don't let Smoke and Mirrors Interfere with your Conveyance

Statistics clearly show smoke alarms save lives. This is why the NSW Government has made it mandatory for all property owners to install some alarms, with other states to soon follow suit.

However there is growing concern that this Government initiative to uphold the safety of residents may interfere with the conveyancing process.

What are the new smoke alarms regulations?

In a “bid to reduce further loss of life from building fires”, the NSW Government introduced t he Environmental Planning and Assessment (Smoke Alarms) regulation 2006 (NSW) (“the EPA Regulation”), which was gazetted on 10 March 2005 and commenced on 1 May 2006.

The new changes were a response to the NSW Fire Brigades estimate that 59 per cent of deaths from house fires occur during sleeping hours and 670,000 homes across the State do not have smoke alarms, leaving occupants at great risk.

The new EPA Regulation amends the Environmental Planning and Assessment Regulation 2000 (NSW) and makes it compulsory to install smoke alarms in homes and other places where people sleep.

The EPA Regulation outlines what types of buildings require alarms, the types of alarms required and where to install them.

Generally speaking, owners will have 6 months to comply. As of 1 May 2006, however, it is an offence to remove or interfere with any smoke alarm or heat alarm that is already installed unless it is to repair, maintain or replace the alarm.

Selling your property means complying with new smoke alarm regulations

The Conveyancing (Sale of Land) Amendment (Smoke Alarms) Regulation 2006 (NSW) (“the Regulation”) was gazetted on 28 April 2006 and commenced on 1 May 2006.

The Regulation amends the Conveyancing (Sale of Land) Regulation 2005 (NSW) to impose obligations on a person selling property (the vendor).

This means that if you are selling a property:

• You need to install smoke alarms under the new EPA Regulation.
• You will then, pursuant to the Regulation need to attach a statement to the contract for sale of land that says the property complied with the new EPA Regulation.

Non-compliance with the new EPA Regulation however, does not prevent the issue of a building certificate. The issue of a building certificate does not release an owner from the obligation to comply with the EPA Regulation and does not prevent a council from taking action to require smoke alarms to be installed.

What happens if I don't attach the smoke alarm statement to my contract?

If the statement is not attached to the contract then a purchaser may rescind the contract.

It will also be an offence to (maximum penalty units - $550) to attach a statement that the seller knows to be incorrect.

However, as the statement needs to be attached only if the new EPA Regulation required the property to have the some alarm(s) installed, the statement will generally not be required to be attached to a contract until 1 November 2001.

New Regulations interfere with conveyancing process, says Law Society

The NSW Law Society has expressed concern that the requirement for vendors to attach a notice to the contract of sale of land would not be the most effective way of ensuring compliance with the new regulations and potentially unduly interferes with the conveyancing process.

The main concerns outlined include:

• The start date for the commencement of the requirement to annex the notice is ambiguous and may generate confusion and uncertainty for both vendors and legal practitioners.
• The statement should offer more than just a declaration that the building complies with the new EPA Regulation, but should contain details of fire-safety requirements and council-endorsed brochures to enable purchasers to make their own informed assessment on whether there has been compliance.
• Offering a property for sale without devices being fitted should attract harsher fines rather than attracting obstructions to the settlement process of the property.

Smoke clouding your conveyance? Then speak to a solicitor

If you are selling your property after 1 May 2006, you need to make sure you comply with the new changes. Similarly if you are a purchaser, you need to ensure the property you buy complies with the new safety standards for the peace of mind of you and your family. Speak to us at Alexander and Associates today so that we can clarify your concerns and help ensure your conveyance complies with the new regulations.

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