Is Your Vendor’s Statement Compliant?

New laws came in to force on 1 October 2014, changing how and what vendors must disclose prior to the sale of property.

The requirement for the Vendor to make disclosures to prospective purchasers stems from section 32 of the Sale of Land Act 1962 (Vic), which was recently amended.

Vendor’s Statements that have been signed by prospective purchasers prior to 1 October 2014, do not need to be replaced, if the land remains for sale since 1 October 2014. Otherwise, Vendor’s Statements must comply with the new legislative provisions.

Here are some important changes, relevant to the preparation of Vendor’s Statements:

  1. A Consumer Affairs Due Diligence Checklist must be provided by the Vendor from the time the property is made available for sale.
  2. If a licenced Real Estate Agent is engaged, the obligation to provide the checklist becomes the Agent’s (some Agents are now providing a link to the checklist on their websites).
  3. Vendor’s Statements are to be given to purchasers prior to the signing of the Contract of Sale.
  4. If the Vendor’s Statement is not provided prior to the Contract of Sale:

(a)  that does not invalidate the Contract of Sale;

(b)  may result in a penalty to the Vendor; and

(c)  the Purchaser’s usual rights to rescind the Contract of Sale for non-disclosures operate as usual.

  1. The Vendor’s Statement no longer needs to be attached to the Contract of Sale.

Provisions have modified how the following information is now disclosed in Vendor’s Statements: Owners Corporation information, Essential Services, Planning information, and Notices directly and indirectly affecting the land.

If you are engaged in, or are planning to undertake a property transaction, it is important that the form of Vendor’s Statement provided meets the legislative requirements.

Pointon Partners act in a wide variety of property transactions, ranging from standard conveyances through to large scale developments, assisting both vendors and purchasers.

If you need assistance with property transactions or related matters, please contact Ted Vlahos.

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