Q: What is a section 32 Statement (also known as Vendors Statement)?
Under the Sale of Land Act 1962 a disclosure statement known as a vendors statement or section 32 statement must be given to the purchaser before the contract is signed. The statement must contain certain information about the property being sold:
- Easements on the property
- Building permits – if any
- Insurance on the building works – if any
- Copy of the certificate of title with a plan attached of the property being sold
- Information on relevant council, water, electricity, telephone or gas authorities who supply services to the property
- Costs of outgoings to the property
Q: What is a Covenant?
Covenants are rules and regulations that are set usually by the developer of the property. These are often registered on titles so that the land will be used in a certain manner. For example, a covenant may require a dwelling to be built in brick or brick veneer but not mud brick, or the house to have a floor area of no less than a certain size. One of the reasons for having covenants is to create a neat and tidy appearance which generally benefits everyone.
Q: What is an Easement?
Easements are generally trenches dug underground and along your boundary for the purposes of running drainage pipes and sewer mains etc. If such easements are on your property then under normal circumstances you cannot built over them unless you have consent from such appropriate authority.
Q: Why should I insure the purchased property prior to settlement?
When you sign a contract for the purchase of a property and have paid a deposit, you have created what is known as an “insurable interest” in the property. Naturally, you will want to protect this interest.
While the seller of the property should have certain obligations to have insurance on the property he may not have it insured for the correct amount nor even be trusted to keep the insurance going until settlement day.
Q: Do I have to attend settlement?
No. We will attend settlement on your behalf and meet at settlement with the sellers and purchasers respective banks.
Q: Who pays the rates?
Generally the council, water, body corporate (if applicable), rent (if it is tenanted) and land tax (if there is any) are adjusted at settlement. It is the sellers obligation to pay for all outgoings up to the date of settlement and the purchaser is responsible for outgoings after the settlement date. At Jennings Conveyancing we arrange all this for you. For example, if you are a seller and you have paid your council rates in advance which are past the settlement date, then you will be rebated back by the purchaser at settlement.
Q: Which authorities do we need to advise when selling or buying?
We will advise the council and water authority together with the body corporate (if applicable) of your sale or purchase and advise them of the new purchaser details. Your requirements will include arrangements for the telephone, gas and electricity to be connected where you are the purchaser or disconnected where you are the seller prior to settlement.