In the state of Victoria, you are by law required to receive a Vendor’s Statement (aka Section 32 Statement) attached to the contract of sale. The statement should contain the following information:
Title: a copy of the property title must be attached. This will identify the seller as the owner and correctly identify the property for sale.
Easements and Covenants: A covenant is a restriction on what an owner can do to the land. An easement gives another person rights to use the property in some way for some reason.It is important to be aware of any covenants or easements and the implications of disobeying any of these.
Rates and Charges: Any rates or charges which you are liable for once taking ownership will be detailed here.
Notices and Orders: If there are any proposed or approved works that will affect the property then they should be noted here.
Services: This section lists services such as telephone, electricity, gas, sewerage, water that are connected to the property.
Planning: This relates to zoning. It is important that the area is zoned as residential if you are buying a residential property, and commercial if you are buying a property that is intended for commercial use. The planning certificate should be attached to the statement.
Building Permits: Details of any building permits and insurance information need to be attached to the statement if there have been any work carried out in the last 7 years.
In NSW, the vendor is required to provide Schedule 1 Prescribed Documents. Generally, these contain information on any mortgages on the property, deeds, and restrictions on land use.
SA vendors are also required to provide a Form 1 Disclosure Statement to the purchaser via the vendor’s real estate agent.
In QLD there are no compulsory disclosure statements for residential property sales. Body corporates do have requirements, and independent inspections are recommended.
In TAS and NT there are no requirements. And in WA the vendor needs to provide a Vendor’s Disclosure Statement for their agent, not any potential purchasers.
Titlexchange can assist you with the preparation or review of contracts relating to a property transaction. Check out our packages and add-on products for more information on pricing. If you would like to get the ball rolling, schedule a call with us now.