(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—
(a)to the seller’s knowledge, there are no latent or patent defects in the common property or body corporate assets, other than the following—
(i)defects arising through fair wear and tear;
(ii)defects disclosed in the contract; and
(b)the body corporate records do not disclose any defects to which the warranty in paragraph (a) applies; and
(c)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
(d)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.
1An administrator has been appointed under the order of an adjudicator under the dispute resolution provisions.
2The 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.