Vendor Disclosure Obligations in Conveyancing Transactions

10 August 2026 in Property and Conveyancing Law | 2 min read

This brief article outlines changes in vendor disclosure obligations in conveyancing transactions. These were introduced in 2022 via Regulation 60 of the Property and Stock Agents Regulation.

Why were the Disclosure Obligations Changed? 

Regulation 60 of the Property and Stock Agents Regulations 2022 (‘the Regulations’) was introduced in 2022 to broaden the disclosure obligations of vendors real property (real estate). Regulation 60 of the Regulations expands upon the duty of disclosure in s 52 of the Property and Stock Agents Act 2002 (‘the Act’). Section 52 of the Act prohibits the “concealment of material facts”. However, ambiguity arose when establishing the definition of “material facts” that has been largely defined by case law.

On 23 March 2020, section 52(1)(b) of the Act was amended,  the word “concealment” was replaced by a broader phrase to capture “failure to disclose”. Additionally, with the implementation of the “failure to disclose a material fact”, the 2020 amendments further added an objective element  “ought reasonably to know”, to complement the original element of actual knowledge.

Improved Consumer Confidence in Property Purchase

Regulation 60 of the Regulations was implemented to promote consumer confidence in the New South Wales property market. A list of material facts was introduced thereby creating transparency through the concept of disclosing information to consumers, who may rely on the established list of “material facts”.

Misrepresentation is one of the main issues of concern addressed by the implementation of regulation 60 of the Regulations. By establishing various criteria of “material facts” it prevents the use of misleading information and the failure to disclose the relevant information. In effect it protects consumers and creates a statutory obligation to ensure transparency.

What are Material Facts?

Regulation 60 of the Regulations provides (8) specific categories of “material facts” which must be disclosed, specifically by a licensed or registered person or persons before entering into a contract with a consumer. The regulated “material facts” to be disclosed are as follows:

1. If the property has been subject to any flooding or bush fires in the last 5 years
2. If the property is subject to significant health risks;
3. If the property is registered to contain loose-fill asbestos insulation that is required to be maintained;
4. If the property has been the scene of the crime of murder or manslaughter in the last 5 years;
5. If the property has been used for the purposes of the manufacture, cultivation or supply of a prohibited drug or prohibited plant in the last 2 years;
6. If the property is, or is part of, a building that contains external combustible cladding;
7. If the property is, or is part of, a building that is pending, cladding related development applications; and
8. If the property is subject to orders relating to building work rectification, a prohibition order and a stop work order.

Summary

The purpose of s 60 of the Regulations is to rectify the ambiguous nature of the pre-existing provisions including its foundation of section 52 of the Act and its 2020 amendments. Expanding the pre-existing provisions into a regulation that provides certainty and clarification, specifically including “material facts” ensures the purpose of consumer protection when the duty to disclose is relevant.  In effect, regulation 60 of the Regulations ensures consumers are able to make informed decisions when purchasing a property and prevent any consequential financial loss.

How can BSM Lawyers assist you?

All of our conveyancing is conducted entirely by experienced property lawyers. We do not use conveyancers. Our property lawyers remain up to date with current conveyancing and property legislation and provide regular updates with your conveyancing matter. The senior property lawyers at Brander Smith McKnight Sydney Lawyers provide a free 20 minute consultation to discuss your matter.

Brander Smith McKnight Lawyer Sydney have offices conveniently located in Sydney CBD, Sutherland, Parramatta, Shellharbour and Wollongong.