Property Conveyancing - Vendor’s statements and property inspections
When buying a home, before you make an offer on a property, the real estate agent must provide you with a copy of the vendor’s statement. The vendor’s statement (or Section 32 Statement) contains information about the land for sale. It won’t, however, contain any information about the condition of buildings and fittings. In this regard, it is vital that you carry out your own property inspection.
The vendor’s statement is usually prepared by the vendor’s solicitor or conveyancer and will contain information on:
- the property’s title;
- mortgages, covenants and easements;
- zoning permits and planning information;
- services connected to the property and rates information;
- body corporate notices and liabilities;
- any notice, order or approval which may affect the land; and
- any building guarantees and permits obtained in the last seven years.
The vendor’s statement is a legal document and must contain accurate information. You may be able to withdraw from a contract of sale if it is inaccurate, incomplete or misleading. Have your solicitor review the vendor’s statement and advise you on its contents.
The contract of sale will contain no guarantees about the condition of the building unless you negotiate them with the vendor. Again it is vital to do your own property inspection or hire a professional valuer, builder or architect to do one for you.
When conducting a property inspection some of the key things to look for are:
- rotten stumps;
- faulty wiring;
- structural cracking;
- rising damp;
- sloping or bouncing floors;
- termite activity;
- sagging roof frame;
- cracked roof tiles;
- correctly fenced swimming pools; and
- correctly measured property boundaries.
Don’t just look for obvious problems. Look for signs that problems have been covered up. Is that coat of paint glossing over structural cracking? Is wood panelling or wallpaper covering up a more serious problem than just bad taste? When buying a home the rule is – buyer beware! Do your homework. Speak to your solicitor about the pit falls to look out for when buying a home.
More Information
Buying a Home information brochure. Available form the LIV or ask your solicitor.
From the LIV Bookshop
Buying and Selling Property in a Nutshell, Airey, $19.95
Useful Web links
The LIV website contains information on buying a home at www.liv.asn.au/public/legalinfo/property
Disclaimer:
The information in this newsletter is not intended to be a complete statement of the law relating to the issues raised. Accordingly, no person should rely on this information without first obtaining specific advice from Ms Eleanor Coates of our office. | 
