RCD’s
From August 9th 2009, sellers of residential properties will be required to have, at settlement, two RCDs installed in relation to the premises. The same requirement will apply to residential premises being leased or an existing lease being renewed.

There will be an exemption to this requirement for the sale of a residential house if it is agreed by an inspector that the existing switchboard is not suitable for two RCDs e.g.not enough space. In such a scenario the seller will only have to install one RCD.

The other exemption is where the buyer states to the seller that the residential dwelling will be demolished by a specified date. The specified date must be less than six months from the date of transfer. The seller is required to send that buyer's statement to the Director of EnergySafety.

The Regulations provide that the property can be transferred without RCDs and the buyer must then install the RCDs but that the seller is liable for the cost.

While the Regulations provide for financial penalties for breaches, it is not expected that the penalties will be enforced during the introduction period.

We stress to agents the importance of informing sellers of their obligations.

Smoke Alarms
It is anticipated the requirement to have smoke alarms in residential properties that are being sold or made available to lease will come into effect in October 2009.