Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-09-13 Daily Xml

Contents

EDWARDSTOWN GROUNDWATER CONTAMINATION

In reply to the Hon. D.W. RIDGWAY (Leader of the Opposition) (24 February 2011).

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for Gambling): I am advised:

1. I am advised that generally when selling a house a vendor is required to provide a document called a Form 1 to the purchaser of the property. Form 1 sets out certain matters that may affect that specific property.

When the vendor has hired a real estate agent, it is the agent's responsibility to ensure that all the inquiries necessary to prepare Form 1 have been made and to confirm the completeness and accuracy of the particulars contained in the Form 1.

In cases where the Form 1 has not been served, the Office of Consumer and business Affairs may investigate. If found to be inadequate or information has not been disclosed, this may be a breach of the Land and Business Sale and Conveyancing Act, 1994.

Contravention of Part 2 of the Act, which includes provisions about the preparation of FormĀ 1, may result in a maximum penalty of $10,000. Possible civil remedies may include the setting aside of the contract or awarding compensation to the purchaser.

2. The legal position is likely to depend on the facts of each particular case. However, I can generally advise that primary legal responsibility for site contamination lies with the owner of the land.

People who have bought a property which lies over contaminated water should seek legal advice on whether they have a cause for action against the person responsible for the source of the contamination or any other person.

The Environment Protection Authority's responsibilities in relation to site contamination are set out in the Environment Protection Act 1993.

The Authority holds certain information about site contamination which it makes public through its public register and through its responses to Form 1 inquiries in relation to properties for which it holds specified records.

3. The application of these principles will depend on the facts of each individual case and the actions of individual vendors and agents.