264Implied warranties

264 Implied warranties (1) The warranties (the implied warranties) in this section are taken to be part of a contract for the sale of a unit. (2) The seller of a unit warrants that, at the date of the contract— (a) to the seller’s knowledge, there are no unfunded latent or patent defects in the common property or owners corporation assets, other than the following: (i) defects arising through fair wear and tear; (ii) defects disclosed in the contract; and (b) the owners corporation 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 unfunded liabilities of the owners corporation that are not part of the corporation’s normal operating expenses, other than liabilities disclosed in the contract; and (d) the owners corporation records do not disclose any liabilities of the corporation to which the warranty in paragraph (c) applies. (3) The seller of a unit who enters an off-the-plan contract warrants that the information in the disclosure statement, including any matter incorporated in the disclosure statement by a disclosure update notice, is accurate. (4) The seller warrants that, 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 owners corporation likely to significantly prejudice the buyer. (5) For subsection (2), a seller is taken to have knowledge of a thing if the seller has actual knowledge, or ought reasonably to have knowledge, of the thing.