What is a Vendor's Statement and when must it be provided?
Section 32 of the Sale of Land Act 1962 requires a vendor to provide to a purchaser a statement that discloses information about the property prior to entering into a contract. The information contained in a Vendor's Statement varies depending on the type of property being purchased but generally includes information such as:
- particulars of any building permits relevant to the land;
- particulars of any owner-builder insurance and report which lists any defects as required under the Building Act 1993;
- details of any registered or unregistered easement, covenant, caveat, charges or other similar restriction which affects the property and any breach of these restrictions, even where they do not appear on the title;
- particulars of the relevant planning instruments and information;
- details of outgoings affecting the property;
- particulars of any notices, orders, declarations, reports or recommendations of a public authority or government department affecting the property, which includes matters such as fencing, road-widening and sewerage;
- advice as to road access if there is no access to the property by road;
- owners corporation information; and
- a copy of any applicable lease.
In addition, to the information listed above, the vendor is required to attach certain documents to the Vendors Statement including:
- a copy of a search of the Certificate of Title;
- evidence of the vendor's right to sell;
- a copies of relevant plans; and
- if the land is affected by an owners corporation, a copy of the owners corporation certificate and all relevant documents such as a copy of the rules and a copy of all resolutions made at the last general meeting.
The Vendor's Statement should be prepared by a qualified practitioner to ensure that the information contained in the Statement is correct and all relevant information for the property being sold by the vendor is provided. Where the vendor fails to meet these requirements, the purchaser may terminate the contract at any time before they are entitled to the title and possession of the property (which usually occurs at settlement). In the situation that a vendor knowingly or recklessly provides false information or fails to provide all the relevant information required the vendor may be found to have committed a criminal offence and be liable for fines.
