Getting Real About Real Estate

Are You Sure That Your Vendor's Statement Is Ready Before You Sell Your Home?

If you are selling a residential property for the first time, expect to come across mountains of paperwork, whether in conventional or digital form. This type of process can be quite lengthy, but it is nevertheless important for you to get everything done properly if you are to close any potential loopholes and make sure that all parties are happy. While some parts of this paperwork may be more important than others, you need to be certain that you make the right disclosures and focus on a document that may be called a 'section 32' or vendor statement. What does this involve?

Dealing with the Statement

The vendor statement must be attached to any contract linked to a property transaction and is a central point of reference for crucial information. You need to ensure that the other party is well aware of any potential restrictions that may be linked to the property, and you should never rely on verbal assurances in any case. You must be able to point to this statement at crucial times during the transaction, so there are never any nasty surprises just before settlement day.

Much of the statement will incorporate basic information related to the property itself, like its size, location and current ownership. However, the devil may be in the details where you outline any restrictions. These may restrict the new owner and may not allow them to use the property in a certain way and, consequently, could be fundamental to the buying decision.

Things to Disclose

For example, you should include full details about any building permits linked to the property, whether they are current or expired. You should also reveal any levies or other charges linked to the property, whether or not they will be satisfied as soon as settlement is complete.

If the property is part of a larger development, then it may be linked with an owner's corporation, and this may come with a variety of other restrictions. Likewise, the building may be part of a homeowner's association and their rules may prohibit a new owner from engaging in certain activities or modifying the building in a different way.

If you are aware of any major planning developments or restrictions imposed by government departments, then you must put all the details in this statement. While you think it may be obvious, you should also indicate if the property is situated within a known bushfire zone.

Never Assume

Don't automatically assume that you know everything about the property and can simply complete this statement without any further work. To be fully effective, you should ensure that a comprehensive search is done of all relevant agency records, just to be on the safe side.

Financial Risk

If this statement proves to be substandard, then the buyer has the option to pull out of the contract at the last minute. They will claim that they were not fully informed, and you may have to pay legal fees and other associated costs connected with putting the property back onto the market.

Team Approach

Talk about your vendor statement with a residential conveyancing specialist as soon as possible as between the two of you, you will need to ensure that the document is fully comprehensive.