Section 32 Vendors Statement
When buying a property the agent will give you a Section 32 Vendor Statement. The best description of a Section 32 Vendors Statement could be compared to that of a vehicle Road Worthy Report. The Section 32 Vendors Statement is a document that declares to a potential purchaser the story of the property. It details information such as the property's Title description, zoning details, local council, utility companies, rates, building permits, notices and much more.
Before signing any contract the old rule of "BUYER BEWARE" can not be stressed enough. Be sure that you have checked everything out with your future property. Some of these checks include:
- Get a building inspection subject to YOUR satisfaction. NOT to a major structural defect.
- Make sure that all the appliances are working and all the fixtures and fittings are in good shape. It is a good idea to write these down.
- Measure the properties boundaries as per the planning diagram attached to the Section 32 Vendors Statement.
- Make sure that the property complies with all the local building regulations.
- Arrange for a pest inspection; termites are hard to find.
- If in doubt, contact us and we can point you in the right direction BEFORE you sign a contract.
Contract Note / Contract of Sale
Once you are ready to give your offer you generally do this via a Contract Note or Contract of Sale. You communicate your terms of your offer to the Vendor and if they accept them you pay a deposit and this document is now generally the final contract for the purchase of your new property.
C.W will conduct the necessary searches involved with your transaction. Should anything be out of the ordinary we will advise you immediately.
If you are required to provide money for settlement we will advise you of the cheque payee and amounts in due course. Generally this will be approximately 2-5 days prior to settlement. Ensure that you have your money available by this time and you can draw Bank Cheques as we request them. It won't be any good if your money is tied up in shares, term deposits or tucked under your bed for a property settlement. If you have an issue closer to settlement and won't be in a position to get bank cheques prior to settlement, relax, you can park your funds in our retained solicitors trust account. Once settlement is close we will arrange for the cheques to be drawn and then you can relax.
C.W attends to settlement on your behalf, you are not required to attend. Settlement is where all stakeholders (or the representatives) attend to exchange documents and money. Once the transaction is complete we will call you to advise you of the good news. If you are moving into your new property you can then go to the real estate agents office to collect the keys or if you are taking over the tenancy, be welcomed to the role of being a landlord or, if you bought a block of land, celebrate with a drink and pitch a tent!
C.W will inform council and the water company that you are the new property owners. We also prepare our final summary of the transaction to complete your matter.
The Property will normally remain at the risk of the Vendor until settlement, however there have been circumstances that we are personally aware of, where substantial damage was caused to a property by fire prior to settlement, and the Vendors insurance did not cover the damage.
It is advised to obtain House Insurance upon signing a Contract of Sale as at this time you have an equitable interest in the Property.
It is also likely that if you are obtaining finance from a lending institution, the lender will require you to produce a fully paid up Insurance Policy or Certificate of Currency for at least a six month period showing a minimum replacement value and the lenders name on the policy as mortgagee. It is usual for a lender to refuse to attend settlement until they have sighted this document.
Cooling Off Period
The Purchaser of a property may have rights to avoid the Contract of Sale, or "Cool Off".
If the Purchaser intends to Cool Off, they must give written notice of their intention to end the Contract within three (3) clear business days from the time that the Purchaser signs the Contract.
If the Purchaser ends the Contract in this way, they are entitled to a refund of any deposit monies paid.
PLEASE NOTE : A sum of money may be forfeited. The Purchaser should take note of any such conditions within the Contract of Sale.
- The three day cooling off period DOES NOT apply if:
- The Property was purchased at auction or within three (3) clear business days before or after a publicly advertised auction.
- The Purchaser received independent advice from a Solicitor before signing the Contract.
- The Property purchased is used for commercial or industrial purposes.
- The Property is more than 20 hectares in size and is mainly used for farming purposes.
- The Purchaser has previously signed a Contract of Sale for the same property.
- The Purchaser is an Estate Agent or Corporate Body.