Your Obligations When Selling A Property

Terry Anson
January 17, 2019

SENIOR PROPERTY CONSULTANT

If you’re selling a property, you might feel like it’s the easy part of the process.

When buying a house, we all know there are many hoops to jump through, like getting finance and proving your capacity to service a loan, not to mention finding the right house.

But as the seller, you do have some important obligations to meet under state legislation to make sure the sale proceeds smoothly.

Your obligations

In some states, significant documentation is required, including pre-purchase reports on energy efficiency, asbestos, pest control and heritage status.

In Victoria, you have to formally disclose certain details about your property before a contract is signed.

Vendor’s statement

A vendor’s statement has details on your property to give prospective buyers a complete picture of what they will be investing in. It is designed to outline details that wouldn’t be discovered as part of a normal inspection.

Your property agent is not responsible for ensuring you meet these requirements, but they should be able to help you through the process and let you know what you need to include.

What’s included in a vendor’s statement?

It is a legal document and you’ll need a lawyer or conveyancer to prepare it. The statement gives a buyer details on:

  • planning and zoning, particularly if it impacts how the land can be used
  •  any mortgages, debts or charges against the land
  •  building permits issued in the last seven years
  •  building works completed by an owner-builder
  •  any covenants, easements or other restrictions on the property
  •  services connected to the property.

The vendor’s statement is also known as a section 32 statement in reference to the relevant part of the legislation.

Essential for a binding contract

If you don’t provide a vendor’s statement before the property is sold, or it contains false or insufficient information, any contract will not be binding. That means, even though someone agrees to buy your property and signs a contract, they can cancel the agreement anytime in the lead up to settlement.

Due diligence checklist

Consumer Affairs Victoria have prepared a due diligence checklist to help buyers assess properties before making a purchase.

You or your agent must make sure this checklist is available at all inspections, and your agent must link to the relevant information on their website.

Consumer Affairs Victoria have more information on the checklist, including a downloadable copy.

Give yourself peace of mind

These obligations for sellers are designed to protect buyers by ensuring they’re making informed decisions. As a seller, it’s important to tick all the boxes because the alternative is potentially costly and time-consuming.

That’s why you need the right team behind you when selling a property, and why it is worth spending some time to find the best people to help you.

Make sure you find a professional with experience in real estate and property transfers. Your lawyer or conveyancer will prepare all the relevant documentation. As experienced estate agents, we can also help produce documents like your vendor’s statement.

Plus we can help you get a great price for your Melbourne property. Get in touch to talk with us today.

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