Conveyancing is the legal transfer of ownership in land or property from one person to another.
As a Vendor, when selling property there are many things you must consider, this includes providing your agent with a Section 32 Vendors Statement.Your agent MUST provide this document to all potential buyers.
What is a Section 32? (Also called a Vendors Statement)
A Section 32 Vendors Statement is a disclosure document that provides potential buyers with certain information relating to your property.
Information contained in the Section 32 includes details on the title, zoning, council, rates, utilities, building permits, notices, restrictions, etc.
Who needs a Section 32 Vendors Statement?
All vendors intending to sell their property require a Section 32 Vendors Statement. This document must be provided to all buyers prior to them signing a Contract of Sale.
If you do not provide a Section 32 Vendors Statement to a buyer prior to them signing a Contract of Sale, the Contract of Sale is not enforceable and allows the purchaser to end the Contract without penalty.
Deposit Release (Section 27)
Once your Contract of Sale is unconditional, you may request an early release of the deposit money prior to settlement. Certain information must be provided to the buyer before they may approve the release.
Depending on your financial position, the deposit may or may not be released prior to settlement.
Settlement is where all documents and monies are exchanged.
As a buyer, when purchasing a property there are many things you must consider, including finance, all fixtures and goods that you believe to be staying when the vendor leaves and any Special Conditions that you require in the Contract of Sale.
When do I require a Finance Clause?
It is essential you realise whenever you buy a property without the protection of a ‘subject to finance’ clause that the Contract is called a cash Contract.
That means that you have a legal obligation to settle the Contract, even if the bank declines to give you a loan!
When you sign a Contract ‘subject to finance’, you need to ensure you give yourself enough time to obtain finance.
It is your responsibility to ensure you do everything required to obtain formal finance approval prior to the finance due date on the Contract of Sale.
What is the difference between Fixtures and Goods?
Fixtures are items within the property that the vendor will nominate to remain with the property. For example, if the property contains a dishwasher that the vendor does not nominate as remaining in the property and is easily removable (without damage) it will be deemed to be a Good and the vendor will usually take it with them.
If you are under the impression that the dishwasher will remain, you need to question the selling agent and nominate the dishwasher as a fixture on the Contract as an item that will remain in the property following settlement.
Generally, the selling agent will know the items the vendor has nominated to remain in the property.
It is recommended that all items you believe will remain with the property, eg: air conditioning unit, garden shed, TV antenna, etc. you nominate as fixtures in the Contract.
Do I need to specify if the items are in working order?
You should test and ensure all appliances (heater, dishwasher, lights, cooling, spas, etc.) are in working order at the time you inspect the property and before you sign any Contract, as the vendor has an obligation to maintain the property in the same state of repair as at the day you purchased the property.
What are Special Conditions on a Contract of Sale, and how do they benefit a purchaser?
Special Conditions are conditions that also make a Contract of Sale ‘subject to something’, They are similar to a finance clause. Most buyers seek a Special Condition to be included in the Contract of Sale that allows them to gather some information on the property. An example of a Special Condition would be to obtain a building inspection report or a pest inspection report within a certain timeframe from the day they sign the contract.
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Information provided on the Town and Country website IS NOT intended to be legal advice. We recommend you seek legal advice from a solicitor for any legal work required.
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