Essential reading (2015) by Prudential Real Estate

February 2010 FTR32

Essential Reading Information from the NSW Office of Fair Trading

FACT SHEET

Our promise to you Since 1988 we have strived to provide the very best real estate service in Sydney to the many property buyers, sellers, investors and tenants who call on us for help and advice each week. This booklet and the advice it contains is part of that promise. We hope you enjoy the content and profit from the experience. Remember, our offices are open 7 days a week to help you with any real estate matter so be sure to call us if you think we can help. You'll find contact details for your nearest Prudential Real Estate office on the back page of this booklet.

www.fairtrading.nsw.gov.au

February 2010 FTR32

Agency agreements for the sale of residential property Selling a home is something many people do only once or twice in a lifetime, so it pays to do some homework before signing up with an agent to sell your property for you. When you sign up with an agent, you enter into a legally binding contract. This fact sheet explains what your rights and responsibilities are under that contract. You have a cooling–off period of 1 day starting from when you sign the agreement. You can cancel the agreement in this time if you are not happy with it (more information over the page).

Choosing a real estate agent To sell a home in New South Wales, an agent must have a real estate agent’s licence issued by NSW Fair Trading. You should check the licence details of all agents you are thinking of using before signing up with your preferred choice. You can do a licence check online through the Fair Trading website or by calling 13 32 20. To find the right agent for your needs, you should shop around. If possible, get the names of one or two agents from other home owners in your area who have recently sold. We suggest you talk to at least three agents and: Ÿ

make sure they have a valid licence

get a list of all their fees

find out if they have a good knowledge of your area

ask if they adhere to a code of ethics.

Signing up with an agent Before the agent can market your property, they must sign a contract with you, called an ‘agency agreement’. An agency agreement is a legally binding contract and it is important that you read and understand it.

If you are not sure about the agreement terms you should get legal advice. Signing an agency agreement means that you authorise an agent to do certain things for you in relation to the sale of your property, such as arranging advertising and inspections and receiving deposits from buyers. The agreement must specify what the agent is authorised to do for you and must state all commissions and any other costs you may be liable to pay.

What is in the agency agreement The agency agreement must state: Ÿ

the services the agent will provide for you

the amounts of any fees or commission you agree to pay for those services

the circumstances in which the agent is entitled to payment – for example, commission is usually payable only when the property is sold

how and when payment is to be made – for example, whether the agent can deduct their commission from the deposit money paid by the buyer

warnings about circumstances in which you might have to pay commission to more than one agent (see information on page 2 about the different types of agency agreement)

the extent of the agent’s authority to act for you – for example, whether the agent is permitted to exchange a sale contract on your behalf or make changes to the sale contract

the agent’s estimated selling price or price range for the property.

FACT SHEET

You have the right to negotiate with the agent about the terms and conditions of the agreement and to ask for any legally permitted changes to be made. Alterations made to the agreement need to be signed by all parties.

Commission, fees and expenses The amounts charged by agents are not set by law. You can negotiate with the agent about the amounts of any commissions, fees or other expenses that you may be required to pay. Before signing an agreement, it is a good idea to talk to a few agents and compare their prices. Ask each agent for a printed list of their fees and commission rates and the expenses they charge. Disclosure of rebates and discounts The agency agreement may require you to pay the agent for certain expenses in relation to the sale of your home, such as advertising, auctioneer’s fee, or any other services the agent may arrange for you, such as cleaning, decorating or landscaping. Sometimes the amount the agent has to pay for the service is less than what you are being asked to pay. This can occur if the agent receives a commission or discount from the provider of the service for being a regular customer – for example, some newspapers pay a commission to the agency at the end of the year based on how much advertising was placed. The agency agreement must state the amounts or estimated amounts of any such commissions or discounts and from whom they are received. You can negotiate with the agent about whether you should pay the full amount. Ending the agreement The agency agreement usually has a specified period (a ‘fixed term’) during which the agreement cannot be ended unless you and the agent both agree. If the agreement is open ended (that is, it does not have a fixed term) it must state how the agreement can be ended. The length of any fixed term is negotiated between you and the agent, there is no

minimum or maximum set term. The fixed term will depend on how long you and the agent think it will take to sell the property. If the fixed term is longer than 90 days, you can give the agent 30 days written notice to end the agreement after 90 days. Of course, if the fixed term has less than 30 days left to run, you can just give notice to end the agreement at the end of the fixed term – check your agreement to see how much notice you need to give. If you are not sure how to end the agreement, you should seek legal advice. If you are not happy with an agent’s services, it is important to properly end your agreement with them before signing up with another agent. Otherwise both agents may charge you commission when the property is sold.

Types of agency agreements There are several different kinds of agency agreements for the sale of residential property. It is important to be aware of the kind of agreement you sign, because it affects your rights and the amount of commission you may have to pay. You should discuss the agreement with a legal adviser if you are not sure about your rights. The following is an overview of the different types of agreements.

Exclusive agency agreements Exclusive agency agreements are commonly used for the sale of residential property. In this kind of agreement, you give exclusive rights to one agent to sell your property. This may entitle the agent to be paid commission if the property is sold during the fixed term of the agreement, even if the property is sold by you or by another agent. The agent may also be entitled to commission if the property later sells to a person who started negotiating for the property with the original agent.

Sole agency agreements This is similar to an exclusive agency agreement. You give rights to one agent to sell the property but you may find a buyer yourself. If you find a buyer who has not been introduced by the agent, then no commission is payable to the agent.

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February 2010 FTR32

General listing / Open agency agreement This lets you list your property with a number of agents. You pay a commission to the agent who finds the buyer.

need to deliver a ‘notice of rescission’ to the agent. This simply means giving the agent a written notice or letter which:

Multiple listing

This occurs when you deal with an agent who is part of a network of agents working together to sell your home. It covers both auction and private treaty. You pay a commission to the agent you signed up with.

is addressed to the agent (use their name as given in the agency agreement),

states that you are rescinding the agreement, and

is signed by you (and any other person named on the agreement as a principal) or by your solicitor/s.

Auction agency agreement This is effectively an exclusive agency agreement where the property is listed for auction.

Cooling–off period The agency agreement becomes binding when the principal (that is, you as the owner/s of the property, or someone who is legally acting for you) and the agent have signed it. There is then a cooling–off period of 1 business day during which you can cancel (or ‘rescind’) the agreement. Saturday is included for the purposes of the cooling–off period, but public holidays are not. The cooling–off period starts when you sign the agreement and ends at 5pm on the next business day or Saturday. For example, if you s i g n t h e a g re e m e n t o n a F r i d a y, t h e cooling-off period ends at 5pm on Saturday. If you sign up on Saturday, the cooling–off period would usually end at 5pm on Monday, unless that is a public holiday, in which case it will end at 5pm on Tuesday. The cooling–off period gives you time to read the agreement, consider the terms you have agreed to, including the agent’s fees, and get independent advice if you have concerns about any aspect of the agreement. Talk to the agent – they may be willing to change things in the agreement that you are not happy about. Cancelling the agreement during the cooling – off period If you decide to cancel (or ‘rescind’) the agreement during the cooling–off period, you

You can hand the notice to the agent in person, deliver it to or leave it at the agent’s office or the agent’s address as given in the agency agreement, or fax it to the agent. Make sure to keep a copy for your records. The agent cannot charge you any fees or costs in relation to an agreement that has been rescinded correctly. Any money you have already paid to the agent must be refunded to you. Waiving your cooling–off rights If you are sure that you wish to go ahead with the agency agreement, you can waive, or forego, your right to a cooling–off period by signing a separate waiver form when you sign the agreement. The cooling–off period can be waived only if the agent gave you the following documents at least 1 business day before you signed the agency agreement: Ÿ

a copy of the proposed (unsigned) agency agreement, and

a copy of this fact sheet.

For example, on Thursday morning the agent gives you a copy of the unsigned agreement and this fact sheet, which you read and consider carefully. On Friday afternoon you sign the agency agreement and the waiver form. The agency agreement immediately becomes binding and the agent can get to work on selling your home.

FACT SHEET

The Contract of Sale

If you encounter problems

A residential property cannot be advertised for sale until a Contract of Sale has been prepared. The contract must contain a copy of the title documents, drainage diagram and the Zoning Certificate (s 149) issued by the local council. Property exclusions must also be included and a statement of the buyer’s cooling off rights must be attached. The draft contract must be available for inspection at the agent’s office. It is important that you consult your solicitor or conveyancer about preparing the contract to make sure that everything is in order.

If an issue arises during the sale process that you are unhappy with, check your copy of the selling agency agreement to clarify your rights and obligations.

Exchange of contracts The contract exchange is a critical point in the sale process: Ÿ

The buyer or seller is not legally bound until signed copies of the contract are exchanged. Buyers of residential property usually have a cooling–off period of 5 working d a y s f o l l o w i n g t h e e xc h a n g e o f co n t ra c t s d u r i n g w h i c h t h ey c a n withdraw from the sale.

If the agent arranges exchange of contracts, the agent must give copies of the signed contract to each party or their solicitor or conveyancer within 2 business days.

The cooling–off period can be waived, reduced or extended by negotiation.

There is no cooling–off period for sellers. Once contracts have been exchanged, sellers are generally bound to complete the agreement.

There is no cooling–off period when purchasing at auction.

www.fairtrading.nsw.gov.au Fair Trading enquiries 13 32 20 TTY 1300 723 404 Language assistance 13 14 50

This fact sheet must not be relied on as legal advice. For more information about this topic, refer to the appropriate legislation.

Try to sort out the problem by talking to the agent. Make certain that any instructions you give the agent are in writing, and keep a copy. If you think the agent has charged a fee to which they are not entitled, or believe the fee charged is excessive, you can apply to the Consumer, Trader and Tenancy Tribunal to settle the matter.

Other tips If you need further assistance to resolve a problem, consider the following: Ÿ

I f your a gent is a m ember o f a professional association, contact that association. They can be helpful in resolving disputes.

You can also seek legal advice from a solicitor or the Chamber Magistrate at your nearest Local Court.

If your complaint concerns your solicitor, you can lodge a complaint with the Office of the Legal Services Commissioner.

I f yo u r c o m p l a i n t c o n c e r n s yo u r conveyancer, you can lodge a complaint with NSW Fair Trading.

More information N SW Fa i r Tra d i n g c a n g i ve yo u m o re information about the laws applying to property sales and agents. Contact Fair Trading on 13 32 20 or visit the Fair Trading website.

© State of New South Wales through NSW Fair Trading You may freely copy, distribute, display or download this information with some important restrictions. See NSW Fair Trading's copyright policy at www.fairtrading.nsw.gov.au or email publications@services.nsw.gov.au

www.fairtrading.nsw.gov.au

February 2010 FTR32

Conveyancing If you want to buy or sell a home, land or investment property you’ll have to sign a contract. The legal work involved in preparing the sales contract, mortgage and other related documents, is called conveyancing. It’s possible to do your own conveyancing, however, most people get a licensed conveyancer or solicitor to do the work for them. This fact sheet explains what is involved with conveyancing.

Who can do conveyancing work? Three options for doing your conveyancing are: Ÿ

using a licensed conveyancer

using a solicitor

doing it yourself.

Using a solicitor While conveyancers and solicitors are equally qualified to do conveyancing work, solicitors can also give you legal advice about other matters. Solicitors, like licensed conveyancers, must also have professional indemnity insurance for your protection. To find a solicitor who does conveyancing: Ÿ

look up the Yellow Pages (under ‘Conveyancing Services’)

call the Law Society of NSW on 9926 0333

do a search for specialists in ‘property law’ in your local area using the ‘Find a Lawyer’ page on the Law Society’s website www.lawsociety.com.au

Before you start organising your conveyancing, it’s important to do your homework first.

Using a conveyancer In NSW, conveyancers must be licensed with NSW Fair Trading. Most conveyancers hold an unrestricted licence that allows them to perform the full scope of conveyancing work for residential, commercial and rural property. Conveyancers are licensed to do legal work such as preparing documents, giving legal advice on contracts and explaining the implications. Before you decide to use a particular conveyancer, check if they are licensed with us first. To find a conveyancer, look them up in the Yellow Pages under ‘Conveyancing Services’ or call one of the professional associations listed on this fact sheet. Licensed conveyancers must have professional indemnity insurance to protect you in case they make a mistake or are negligent in their work. If they are dishonest with the money you have entrusted to them, you may have access to the Compensation Fund administered by Fair Trading.

QUICK TIP – If you want to complain about a conveyancer, call Fair Trading on 9895 0297.

To complain about a solicitor call the Legal Services Commissioner on 9377 1800 or 1800 242 958. Doing your own conveyancing Doing your own conveyancing can be risky because you can’t get the same insurance available to a licensed conveyancer or solicitor. This means that if you make a mistake you are responsible and there’s nowhere you can go for financial compensation. For example, your solicitor or conveyancer may fail to make sure the vendor has disclosed everything they are legally required to, such as an order to demolish the place. If you suffer loss as a result of this negligence you may be able to take action against them – that’s the difference! Do-ityourself conveyancing kits are available from: Ÿ

Law Consumers’ Association Tel: 9564 6933

Australian Property Law Kits Tel: 1800 252 808.

CAUTION– If you do your own conveyancing you are effectively taking on all the responsibility without insurance against making mistakes. So make sure you know what you are doing.

FACT SHEET

The conveyancing process The conveyancing process can involve the following steps:

These can include: Ÿ

a title search

certificate fees charged by authorities with responsibility for water, electricity, roads, schools etc.

photocopying

registering the mortgage.

arranging building and pest inspections

examining a strata inspection report if the property is part of a strata scheme

arranging finance if necessary

examining and exchanging the contract of sale

paying the deposit

building and pest inspections

arranging payment of stamp duties

survey report

preparing and examining the mortgage agreement

establishment of mortgage

home building insurance

valuation fees

mortgage insurance

stamp duty and mortgage duty

council and water rates.

checking if there are outstanding arrears or land tax obligations

finding out if any government authority has a vested interest in the land or if any planned development could effect the property (eg. local council, Sydney Water, Roads and Traffic Authority)

Costs other than legal fees and disbursements will usually include:

finding out any information that may not have been previously disclosed such as a fence dispute or illegal building work

Legal practitioners and conveyancers are required to disclose their costs to clients, including the clients’ right to negotiate a costs agreement, receive bills and be advised of changes, among other things.

calculating adjustments for council and water rates for the property settlement

Need more information?

overseeing the change of title with the Land and Property Information NSW

completing any final checks prior to settlement

attending settlement.

IMPORTANT – Before the conveyancer or solicitor starts the work it is important for you to have a realistic idea of how much it will cost. The best way to do this is to ask for an itemised statement of the likely costs.

Costs Fees will vary between solicitors and conveyancers as there is no official charge for conveyancing. In addition to a legal service fee you will usually be charged for ‘disbursements’.

www.fairtrading.nsw.gov.au Fair Trading enquiries 13 32 20 TTY 1300 723 404 Language assistance 13 14 50

This fact sheet must not be relied on as legal advice. For more information about this topic, refer to the appropriate legislation.

Australian Institute of Conveyancers NSW Division Tel: 9633 1355 www.aicnsw.com.au The Law Society of NSW Tel: 9926 0333 www.lawsociety.com.au The Office of the Legal Services Commissioner Tel: 9377 1800 or 1800 242 958 www.lawlink.nsw.gov.au Home Purchase Advisory Service Tel: 1800 806 653 www.housing.nsw.gov.au

www.fairtrading.nsw.gov.au

February 2010 FTR32

Using an agent to manage your rental property Being a landlord When you own a residential property and intend renting it out, you have two options. You can either manage the property yourself or use a managing agent. Engaging an agent to manage the property on your behalf simply means that you pay a licensed person to run the tenancy for you on a day-to-day basis.

Landlord responsibilities As the owner of the property, you are responsible for ensuring that the tenancy is conducted in accordance with the Residential Tenancies Act 1987. The Tenancy handbook provides landlords and managing agents with more information about the rights and responsibilities of all parties under the Act. One of the key requirements of the Act is that the tenant must be given a copy of the Renting guide at or before entering into the residential tenancy agreement. The Renting guide is available in various community languages and tenants should receive a copy in the language most appropriate to their needs. Your agent can obtain free copies of the Renting guide in English and language versions from Fair Trading.

Use a licensed managing agent All managing agents are required to be licensed by Fair Trading. You should ensure that the agent you are interested in using is properly licensed. Do a licence check online for any agent you are thinking of using or call 13 32 20.

Engaging a managing agent A good managing agent should have a thorough knowledge and understanding of tenancy laws and assist you by ensuring your rights and responsibilities as the landlord are met.

A managing agent's responsibilities include: Ÿ

finding suitable tenants

ensuring the tenancy agreement is correctly completed and signed

lodging the rental bond with Fair Trading

managing the tenancy for you on a day-to-day basis:

arranging repairs to the property

collecting the rent and maintaining accurate rent records and receipts

conducting property inspections

handling disputes that may arise.

paying the rent to you less any costs and agency fees, either into your nominated bank account or by cheque.

If rent is paid to you directly into your bank account, it is your responsibility to check the balance regularly to ensure that rent is being deposited. A managing agent must notify you immediately in writing if they become aware a tenant has breached the tenancy agreement.

Management Agency Agreement When you engage an agent to manage your property, you will enter into a binding written contract called a Management Agency Agreement. The terms, fees and some conditions of the agreement are negotiable so shop around and compare the prices and services offered by a number of managing agents. To save yourself time and effort, you can specify in the Agreement that only repairs costing more than a nominated amount (eg. $100) require your approval. This enables the

FACT SHEET

agent to authorise minor repairs up to that amount. Standard Management Agency Agreements usually contain a clause stating that a notice period applies to termination. It is in your interest to keep the notice period short, say a month or two. Agreements must be terminated in writing.

Resolving problems quickly is not only good for tenants, it also benefits you the landlord by minimising the possibility of financial loss.

Agency fees Most agents charge a fee based on a percentage of the gross weekly rental. This can be negotiated, but it is usually between 5 – 10%. The agent usually sends you a monthly account, but more frequent accounting can be negotiated. The account shows the amount of rent paid to the landlord less any costs and agency fee. The cost of minor repairs is usually deducted from the rent and listed in your monthly statement as a separate item. Most agents will give you copies of receipts for repairs upon request. It is common industry practice for managing agents to charge a letting or re-letting fee when new tenants are placed in a rental property. The normal fee is 1 week’s rent. These a re n o t c o m p u l s o r y f e e s a n d c a n b e negotiated.

Don’t let problems with tenants escalate If a problem arises at any point in the tenancy, taking a pro-active approach to resolving the issue may be an effective way to prevent the problem from escalating into a dispute. Minor problems can become major issues if not dealt with early enough. Fair Trading encourages landlords and agents to intervene early when tenancy problems first

www.fairtrading.nsw.gov.au Fair Trading enquiries 13 32 20 TTY 1300 723 404 Language assistance 13 14 50

emerge. For example, a tenant may be experiencing some kind of temporary personal crisis which is affecting their tenancy. Rather than take action in accordance with the tenancy agreement or the Act it may be more p ra c t i c a l t o p rov i d e t h e t e n a n t w i t h information on where to go for help, such as a Tenancy Advice and Advocacy Service.

This fact sheet must not be relied on as legal advice. For more information about this topic, refer to the appropriate legislation.

When you have problems The first step in resolving a dispute is to discuss the matter with the parties involved. Ensure you have a clear understanding of your rights and responsibilities in relation to the dispute by checking the residential tenancy agreement, reading the Tenancy handbook or contacting Fair Trading. If the dispute with your tenant cannot be resolved either on your own or with the assistance of Fair Trading, you may have to take the case to the Consumer Trader and Tenancy Tribunal (CTTT). The role of the CTTT is to quickly and effectively resolve disputes between tenants, landlords, traders and consumers. For more information about resolving tenancy problems and the CTTT, contact Fair Trading.

Managing a property yourself The Fair Trading fact sheet titled Self managing your rental property provides an explanation of the basic responsibilities of a landlord to their tenant at the beginning, during, and at the end of a tenancy. If you decide to begin managing the property yourself during the tenancy and a rental bond has been lodged, you must notify Fair Trading by completing a ‘Change of Managing Agent/Owner’ form. Print a copy from the Fair Trading website or call 13 32 20.

www.fairtrading.nsw.gov.au

February 2010 FTR32

Smoke alarms In residential premises To enhance safety and minimise loss-of-life in building fires, the NSW Parliament enacted the Building Legislation Amendment (Smoke Alarms) Act in July 2005. The Act allows regulations to be made to require smoke alarms to be installed in existing buildings in which people sleep. A smoke alarm is an effective early warning device designed to detect smoke and alert building occupants to the presence of a fire. Installed in the correct location, it increases the time available for safe escape.

Neither the landlord nor the tenant are, exce p t w i t h re a s o n a b l e exc u s e, permitted to remove or interfere with the operation of a smoke alarm fitted in the rented premises.

Where a smoke alarm is of the type that has a replaceable battery, the landlord must put a new battery in at the commencement of a tenancy.

After the tenancy begins, the tenant is responsible for replacing the battery if needed. However, if the tenant is physically unable to change the battery the tenant is required to notify the landlord as soon as practicable after becoming aware of the need for it to be replaced.

The tenant is not responsible for the replacement of batteries in ‘hard-wired’ smoke alarm systems that have battery back-up. This is the responsibility of the landlord.

The condition report section of the tenancy agreement must include a specific reference to smoke alarms so that tenants and landlords are able to note and comment on the presence of smoke alarms at the beginning and end of the tenancy.

From 1 May 2006, when the Environmental Planning and Assessment Amendment (Smoke Alarms) Regulation 2006 came into effect, owners of residential property are responsible for ensuring smoke alarms are installed. The Smoke Alarms Regulation specifies which types of buildings will need smoke alarms installed, the types of alarms, where they are to be located and other matters. Contact details for more information about the requirements under the Regulation are listed in this fact sheet.

Changes to fair trading laws Several fair trading laws and regulations have been revised as a result of the new smoke alarm laws and this information summarises these changes for the people that are affected. Landlords and tenants Under the Residential Tenancies Act and the Residential Tenancies (Residential Premises) Regulation: Ÿ

Landlords are responsible for the installation of smoke alarms in rented premises.

Landlords have the right of access to rented premises to fit smoke alarms after giving the tenant at least 2 days notice.

IMPORTANT – Owners of residential property who rent out their premises as holiday accommodation are responsible for installing smoke alarms and replacing batteries. Owners and residents of residential parks Under the Residential Parks Regulation: Ÿ

Park owners who rent out on-site accommodation under tenancy agreements are responsibile for installing smoke alarms in rented premises.

Park owners have the right of access to rented premises to fit smoke alarms after giving the tenant at least 2 days notice.

FACT SHEET

Neither the park owner nor the resident is, except with reasonable excuse, permitted to remove or interfere with the operation of a smoke alarm fitted in the rented premises.

Where a smoke alarm is of the type that has a replaceable battery, the park owner must put a new battery in at the commencement of a tenancy.

After the tenancy begins, the resident is responsible for replacing the battery if needed. However, if the resident is physically unable to change the battery the resident is required to notify the park owner as soon as practicable after becoming aware of the need for it to be replaced.

The resident is not responsible for the replacement of batteries in ‘hard-wired’ smoke alarm systems that have battery back-up. This is the responsibility of the park owner.

The condition report section of the tenancy agreement must include a specific reference to smoke alarms so that residents and park owners are able to note and comment on the presence of smoke alarms at the beginning and end of the tenancy.

The above obligations on park owners equally apply to residents who sub-let their moveable dwellings. Strata scheme lot owners In a strata scheme: Ÿ

Owners of lots can install smoke alarms in their lots without having to obtain approval of the owners corporation. There is an obligation on lot owners to repair any damage to common property caused by the installation of a smoke alarm.

www.fairtrading.nsw.gov.au Fair Trading enquiries 13 32 20 TTY 1300 723 404 Language assistance 13 14 50

This fact sheet must not be relied on as legal advice. For more information about this topic, refer to the appropriate legislation.

Lot owners who rent out their strata scheme residential property should note their responsibilities as landlords in relation to smoke alarms under the Residential Tenancies Act and the Residential Tenancies (Residential Premises) Regulation.

Operators and residents of retirement villages

Under the Retirement Villages Regulation:

Operators are responsible for the installation of smoke alarms and the replacement of all required batteries in premises occupied by residents.

Operators, or persons authorised by operators, have the right of access to premises occupied by residents to install smoke alarms and to replace batteries after giving the resident at least 2 days notice.

The condition report section of the occupancy agreement must include a specific reference to smoke alarms so that residents and operators will be able to note the presence of smoke alarms at the beginning of the occupancy.

More information For more information about the type, location and number of smoke alarms that are required to be fitted to the various classes of residential premises, contact: NSW Fire Brigades www.fire.nsw.gov.au Department of Planning www.planning.nsw.gov.au Tel: 1300 858 812 For any questions about the changes to fair trading laws resulting from the Smoke Alarms Regulation, contact NSW Fair Trading.

www.fairtrading.nsw.gov.au

February 2010 FTR32

Swimming pools Guidelines for consumers A swimming pool can be the entertainment centre of a home. However, there are some dangers associated with all types of pools, particularly for young children.

Pool cleaning systems In the past, there have been a number of incidents which have occurred when children have become trapped in some types of cleaning and skimming systems used in swimming pools. The types of pool cleaning devices involved in these incidents have included: Ÿ

potty-style skimmer boxes

in-floor cleaning systems using suction outlets that are located on the bottom of the pool.

Reduce the risks Check what pool cleaning system is used in your swimming pool. If you are unsure, contact the pool builder or your local pool service provider for help. If you own a swimming pool with a potty-style skimmer box (so-called as it resembles a child’s potty) you should ensure that the skimmer box lid is securely attached by glue or screwed down in place so it can't be removed. If you own a swimming pool with an in-floor cleaning system using suction outlets (outlets that draw from the pool) you should: Ÿ

check that the covers of any pool suction outlets, particularly those of main drains, are firmly and properly affixed using the manufacturer’s recommended parts check that the suction outlet does not present an entrapment risk for the body, hair, fingers or toes ensure that any broken or damaged suction outlet covers, particularly those of main drains, are replaced immediately. All pool owners should: make sure that anyone using their pool,

particularly children, does not play with or near any pool outlets Ÿ

know the location of the on/off switch for the pool filtration system

make sure the on/off switch for the pool filtration system is clearly labelled

ensure that an approved resuscitation char systems. Unlike in-ground pools, there is no protective housing for these products. When buying pools with electrical pumps and filters you should:

make sure the pump and filter have an electrical safety approval number or Regulatory Compliance Mark

check they are suitable for outdoor use

fit a safety switch to the house where the pool will be used

arrange for a licensed electrician to install a suitable weather-protected electrical power point close to where the pool equipment will be located to avoid the use of extension cords.

If it is necessary to use flexible extension cords: Ÿ

only use heavy duty cords and always roll them up and store them overnight or when not in use

do not join a number of extension cords together – purchase a single cord of the required length

make sure extension cords are not damaged by people walking or driving over them or by pets chewing on them

ALWAYS remove the extension cords prior to mowing any lawn area near the pool.

Fencing requirements Owners of premises with swimming pools must ensure: Ÿ

their pools are surrounded at all times by a child-resistant safety barrier

FACT SHEET

separating the swimming pool from any residential building and any place adjoining the premises Ÿ

all doors and gates providing access to the swimming pool are kept closed at all times

a warning sign is displayed near the pool. Fences surrounding pools must be designed, constructed, installed and maintained to comply with Australian standards for swimming pools. Contact your local council for further details.

Inflatable pools Although inflatable swimming pools can also be a great source of fun, especially for small children, there are hazards associated with these products that you must be aware of: Ÿ

Toddlers can drown in very shallow water.

Children can become ill when pool water is left unsanitised for long periods of time.

Electrocution is a very real threat when portable electrical pumps and filter systems are not used properly.

www.fairtrading.nsw.gov.au Fair Trading enquiries 13 32 20 TTY 1300 723 404 Language assistance 13 14 50

This fact sheet must not be relied on as legal advice. For more information about this topic, refer to the appropriate legislation.

www.fairtrading.nsw.gov.au

February 2010 FTR32

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Recipients of this report are reminded that, although due care has been taken in the preparation of the within contained material, prospective property buyers, sellers and investors are always best served by making their own independent inquiries before entering into any real estate transaction. This report has been prepared for the sole and exclusive use of Prudential Real Estate clients and customers. The whole of the contents and design are protected by copyright. COPYRIGHT ÂŠ Michael O'Sullivan 2001-2015