Also known as a section 32 statement, this document will provide you with all relevant information regarding the property’s title. In most cases the Vendor’s Statement is attached to the contract of sale, however, there are occasions when real estate agents will provide the Vendor’s Statement without the contract of sale.
A Vendor’s Statement should be prepared by a legal practitioner, signed by the seller and given to you prior to the contract being signed. While the Vendor’s Statement will list details of the property, it is your responsibility to further investigate any restrictions that may exist. Typically, the Vendor’s Statement includes the following:
Mortgages
Any mortgages incurred against the property. All mortgages will be discharged at settlement.
Charges
Statutory charges such as land tax, council and water rates.
Outgoings
Outgoings that have arisen as a result of the transfer such as GST.
Insurance
If the contract does not stipulate that the land will remain at the risk of the vendor, then the vendor’s insurance details will need to be provided.
Covenants
Covenants in place that may restrict the buyer’s use and development of the land. For example, a restrictive covenant might prevent an owner from erecting a front fence.
Easements
Any easements that provide another party with the right to use the land for a specific purpose. For example, a water easement that permits the water authority to access the property for the purpose of maintaining drains.
Planning
Planning controls must include the name of the planning scheme, the responsible authority, the zoning of the land and whether it prohibits construction.
Leases
Attaching the lease to the contract is sufficient, however, the buyer should also be notified if the current tenants have continuously breached the terms of the lease.
Building Permits
Building permits issued in respect of the land in the preceding 7 years.
Owners Corporation
Land that is currently affected by an owners corporation or has been affected within the previous 15 months. An owners corporation certificate should also be attached with any relevant fees.
Non-connected services
Services such as electricity supply, gas supply, water supply, sewerage and telephone services.
Evidence of title
A copy of the Certificate of Title unless the land is not registered under the Torrens system. This is, however, quite rare.
Subdivision
A copy of the plan of subdivision must be provided.