Real estate agents could face $1.1 million fine for not disclosing Mr Fluffy asbestos

Asbestos is a terrifying substance that should be avoided at all costs – and real estate agents are being warned not to underestimate their responsibilities in this area.

This has never been so evident as in the dialogue surrounding Mr Fluffy houses. The name sounds innocuous enough, however the properties are anything but, with Asbestos Safety and Eradication Agency chief executive Peter Tighe recently calling for all these properties to be demolished.

Meanwhile, Canberra-based real estate agents have been warned that they may see themselves subject to fines if they do not advise potential buyers about the homes that are affected by Mr Fluffy asbestos – that is, around 1,000 residences in Canberra that had loose amosite asbestos installed by Mr Fluffy in the late-60s and 70s.

Mr Fluffy was an insulation installation company that saw the federal government act to remove the asbestos from 1988 to 1993, but did not manage to clear the properties.

Recently, the Real Estate Institute ACT chief executive Ron Bell was on 666 ABC Canberra saying that agents could face hefty fines – up to $1.1 million – for not telling prospective purchasers about the presence of asbestos.

"We've commissioned lawyers to prepare a whole list of questions and statements that agents will ask in their property management agreements and their sale agreements to say 'Do you know if this has been a Mr Fluffy house? Has asbestos been removed?'," Bell told the radio station.

"These questions will be incorporated into agreements in the very near future."

The properties do have certificates, meaning that the government knows which properties they are, however the government will not release a list of the homes – despite Bell’s requests.

Attorney-General Simon Corbell is quoted as saying that many property owners would not want their properties to be stigmatised as a Mr Fluffy property.  Bell conceded that it would affect a property’s price.

Comments on the Fluffy Action page has some commend Bell’s efforts to encourage agent disclosure, but fear the effect on the value of a property they purchased when unaware of the asbestos.

“That disclosure is vital but distroys [sic] the value of the homes (I wouldn't have bougth [sic] this house). It's not our fault we didn't know. Is the government going to buy our house for market rate or are we expected to take the massive financial hit? It isn't fair that the current owners got stuck when the music stopped. We shouldn't pay for the governments [sic] inaction over the years,” notes one comment.

“I was shocked that after owning my home for more than 10 years that it is a Mr Fluffy house. While the first inspection cleared my house, the second found a fibre in our bathroom. I would like to know what the Government deems to be an acceptable level of risk for all of the residents of the Mr Fluffy homes. As I am pretty sure that if any of these official lived in these houses the response would be swift. We purchased this home with the intention of raising our family and it was to provide a nest egg for retirement. Both of these things will not occur and we are now forced to look at purchasing another home that will provide my young family with a safe place to live while the Government plays politics with our lives and our bank balances,” comments another.

Property Observer reminds property managers and landlords that all people can be affected by the dangerous health implications of asbestos – including your tenants.

Just Think Real Estate’s Edwin Almeida has been particularly vocal about the dangers for tenants around asbestos, and the responsibilities of the agents. If the concept of your tenant becoming ill isn't enough (it should be), then bear in mind that there is the potential for a lawsuit in the future. While Asbestos Check suggests to tenants that they might want to get their own asbestos inspections undertaken, property owners might just want to ensure your tenants are not at risk, and disclose where appropriate.

Even better, you may want to consider renovating the property and ensuring it is safe - the government has recently waived the disposal fees for those wanting to renovate their Mr Fluffy contaminated houses, which should save renovators thousands of dollars.

"The government has made the decision to waive these fees following recommendations from the Asbestos Regulators Forum, and is part of a suite of measures to address the future management of loose-fill asbestos," announced Minister for Workplace Safety and Industrial Relations, Simon Corbell, today.

"This is a significant measure as contaminated waste would normally attract a fee of $75 to $150 per tonne.  A standard three or four bedroom family house could generate between 50 to 150 tonnes of waste, even more depending on the level of contamination, so this could amount to a savings from about $3,500 to well over $10,000 for a knockdown rebuild.

"It is important to note that it is only the disposal fees that are waived. Homeowners are still responsible for demolition and haulage charges involved in getting the material to West Belconnen."