Vendors Statement

What is a Vendors Statement?

A Vendors Statement is a document prepared by the person selling a property and must be provided to a prospective purchaser prior to them signing the Contract. A Contract of Sale is not enforceable unless a Vendor’s Statement has been provided to the purchaser.

The function of the Vendors Statement is to inform the purchaser of certain particulars about the property. When a purchaser is deciding whether or not to buy a property, they will be shown a Vendors Statement by the selling agent. The Vendors Statement will include such information relating to rates, zoning, restrictions etc.

Who needs a Vendors Statement?

Any Vendor accepting a written offer for the sale of a property is required to produce a Vendors Statement. So if you are selling your property, you do.

If you wish to complete

If you intend to sell your property, contact Premier Conveyancing or   compete your  VENDOR INSTRUCTION SHEET, please  CLICK HERE
Once you have completed the Vendor Instruction Sheet, Please EMAIL back to our office and we shall commence work on your Vendors statement immediately.

What is the Section 32/Vendors Statement

A Section 32 or Vendors statement is just that, a statement made by the seller of real estate (vendor) to a purchaser.

Section 32 of the Sale of Land Act requires pre-contract disclosure of recognised title defects. If a seller of real estate (vendor) fails to properly make proper disclosures to a purchaser a purchaser may elect to avoid any subsequent contract relying on that vendors statement section 32.

These disclosure requirements are relatively specific and must be complied with by a vendor.

Your Section 32/Vendors Statement should be prepared by a qualified and licensed conveyancing professional.

The vendor is the only person who is required to sign the Section 32. The vendor may sign personally, or through their legal representative.

The Section 32 must be provided to a purchaser BEFORE the contract is signed.

Sometimes an agent will have the purchaser sign a contract first, and include a special condition in the contract stating that the sale is subject to the vendor providing the purchaser with a copy of the Section 32. In such circumstances the sale is fatally flawed, and the purchaser is entitled to cancel it.

Premier Conveyancing generally prepares 6 copies of the Vendors Statements, we will forward 4 copies to the selling agents, 1 copy to yourself and keep a copy for our files.

What is in the Section 32?

The following is a list of the basic information found in a Section 32. Further information may be required -it depends on the property being sold. (Remember, legal advice from a qualified and licensed conveyancing professional should always be sought regarding the information contained in the Section 32, and what information SHOULD be included).

Basic information in the Section 32:

• Statutory warnings to the purchaser
• Information regarding building permits issued in the past 7 years Particulars of any mortgages or “charges” over the land
• Information regarding covenants, easements and any other restrictions on title (whether or not they appear on the title)
• Planning information, particularly where zoning restricts land use
• Information regarding rates, Taxes, Charges and Outgoing payable by the owner of the property
• If the property is subject to a Growth Area Infrastructure Contribution
• Particulars of any notice, order, declaration, report or recommendation of a public authority or government department
• Details about services connected to the property
• Whether there is access to the property by road or not
• Additional information regarding the any mortgage or charge if the sale is a terms contract
• Confirmation that the property will or will not remain at the risk of the vendor prior to any settlement
• Details of any agricultural restrictions or notices
• Details and evidence of the vendors and his right to sell the property
  
  

In addition to the above other acts also require certain information to be included in a vendors Section 32 statement these include

• If the vendor is the owner-builder who completed building works the required written inspection report (which lists any defects) and if needed Particulars of owner-builder warranty insurance under section 137b of the building act
• Details of any owners corporation and the require disclosures under Section 151 of the owners cooperation Act

Defective Vendors Statement

It is a criminal offence for a vendor to deliberately or recklessly provide false information, or to fail to provide all of the required information.

Where a vendor has failed to comply with the provisions of Section 32, a purchaser may be entitled to end the contract at any time, up until the day of final settlement. This can result in huge costs to a vendor. The vendor may still have to pay a full commission to the estate agent, then a second commission if the property is to be sold again, plus legal costs, plus the cost of the purchaser’s loss.

Of course, there are exceptions. A mere technical breach may not result in cancellation of the contract. Legal advice should be sought before assuming anything with regard to breaches and remedies relating to Section 32 of the Sale of Land Act.