Sydney Hotel Sales: Why Fire Safety Records Need More Than an Annual Statement

A current annual fire safety statement is an important document in a Sydney hotel sale. It is also only one part of the information a purchaser needs. The supporting records explain which measures apply, how systems have been serviced and whether identified issues remain unresolved.

Sellers should present a traceable account of their fire safety documentation. A single statement should not be promoted as proof that every historical or current issue has been settled.

Establish which document answers which question

NSW planning guidance distinguishes fire safety certificates from fire safety statements. A certificate relates to measures installed and checked when new building work is completed. A statement records assessment and verification of applicable measures in an existing building.

The fire safety schedule identifies the building’s relevant measures and minimum performance standards. Read the latest applicable schedule alongside the statement, rather than treating their titles as interchangeable.

Gather available certificates, schedules, annual statements and any supplementary statements. Put them in date order and identify which building or stage each covers. This is particularly useful where hotel premises have been altered over time, because an older document may describe a different arrangement.

Ask a qualified adviser to investigate missing or inconsistent documents. Do not recreate a technical schedule from memory or assume that an equipment invoice establishes the required performance standard.

Include the servicing evidence

The annual statement does not replace the records of routine inspections, testing and maintenance. Buyers need enough supporting information to understand the work completed between annual assessments.

NSW introduced maintenance requirements from 13 February 2026 involving AS 1851-2012 for relevant essential fire safety measures in class 1b and class 2–9 buildings, subject to applicable performance solution arrangements. The requirements concern activities covered by the standard; other measures still require appropriate maintenance. Building Commission NSW also explains record retention and inspection obligations.

Have the hotel’s fire contractor identify the building’s classification, applicable measures and servicing arrangements. Assemble service reports, test results, defect notices and relevant remedial records. Confirm how any performance solution affects the maintenance approach.

Keep the distinction between completed work and recommended work clear. An invoice marked “paid” does not necessarily explain whether a defect was resolved, rechecked or accepted. Obtain the appropriate technical evidence instead of asking the purchaser to infer the outcome.

Explain unresolved matters directly

Create a concise schedule of outstanding issues for your advisers to review. Include the location, source document, current status, proposed action and supporting correspondence.

Avoid describing every issue as minor. Its significance should be assessed by someone qualified to do so. Likewise, a contractor’s recommendation, a formal Council order and a purchaser’s proposed improvement should be identified as different matters.

Within the City of Sydney local government area, Council can issue fire safety orders directing building owners to undertake improvements. Its guidance describes written confirmation after an owner has complied with an order. Obtain the relevant records where an order has affected the hotel.

For hotels elsewhere in Greater Sydney, consult the relevant local council. City of Sydney procedures should not be presented as the administration process for every Sydney suburb.

Keep the evidence current through completion

Fire safety servicing continues while a hotel is marketed. Allocate responsibility for adding new reports, correspondence and completed works to the due diligence material.

If an issue changes after the purchaser’s inspection, provide updated information through the agreed transaction process. Have the parties’ solicitors address any contractual responsibility for outstanding work and the records to be provided at completion.

Does an annual statement guarantee compliance?

No single document should be treated as a blanket guarantee covering all circumstances. Buyers should have their advisers examine the schedule, statement, servicing history, relevant orders and current condition together.

Discuss selling your Sydney hotel

Contact Norton’s Resort Brokers for a confidential discussion about preparing your hotel for sale. Email nortons.re@gmail.com to discuss presenting a clear, organised information package for prospective purchasers.

Disclaimer: This article is general information, not legal, engineering or fire safety advice. Requirements depend on the building, applicable approvals and current law. Obtain independent advice from qualified legal and fire safety professionals; documentation alone does not guarantee compliance or safety.