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A NSW house being leased has a shared driveway, and the neighbour has a registered right of way to drive across it. The property manager plans to say nothing unless asked. What must the manager do?

Correct Answer

C) Tell prospective tenants before signing, as it is a prescribed material fact

Under section 26 of the Residential Tenancies Act 2010 and the Residential Tenancies Regulation 2019, a landlord or agent must not induce a tenant to sign by knowingly concealing prescribed material facts. The tenancy list includes matters beyond the sales list, such as a driveway or walkway that others can legally use, council waste services that differ from other properties, and parking restrictions. A tenant who was not told can give a termination notice or apply to the Tribunal.

Answer Options
A
No disclosure, because material fact rules apply only to sales and not to leasing
B
Disclose it only if the tenant asks, since rights of way appear on the title
C
Tell prospective tenants before signing, as it is a prescribed material fact
D
Disclose it if the lease runs longer than 12 months

Why This Is the Correct Answer

A driveway others can legally use is a prescribed material fact that must be disclosed to prospective tenants.

Why the Other Options Are Wrong

Background Knowledge for Property Management

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Common Mistakes to Avoid on Property Management Questions

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