What is a Vendors Section 32 Statement?
A Vendors Statement is an information statement that must be provided by a person selling a property to a prospective purchaser prior to them signing the Contract. A Contract of Sale is not enforceable unless a Vendors Statement has been provided to the purchaser. The function of the Vendors Statement is to inform the purchaser of certain particulars about the property. When a purchaser is deciding whether or not to buy a property, they will be shown a Vendors Statement by the selling agent. The Vendors Statement will include such information relating to rates, zoning, restrictions etc.
Who needs a Vendors Section 32 Statement?
Any Vendor accepting a written offer for the sale of a property is required to produce a Vendors Section 32 Statement. So if you are selling your property, you need a Section 32 Vendors Statement. If you intend to sell your property contact We Care Conveyancing and we can prepare your Vendors Section 32 Statement within 48 hours.
Settlement Date is the date the Purchaser takes possession of the Property and a specific date will usually be set out in the Contract of Sale. A convenient time of day is agreed to by all parties involved in the matter (Purchasers representative, Vendors representative, incoming Mortgagee and Discharging Mortgagee) who will attend a nominated location (usually the bank of the discharging Mortgagee) at a specific time to effect settlement. It is not usual for a Purchaser or Vendor to attend their own settlement.
At settlement, Bank Cheques are handed to the Vendors representative for inspection. The direction of these cheques and the amounts will have already been advised to the Purchasers representative in writing.
Documents required to Transfer the property out of the Vendors name and into the Purchasers name are handed to the Purchasers representative and incoming Mortgagee for inspection. Once good title has been established and all parties are satisfied, settlement is deemed to have been effected. Both the Vendor and Purchaser will then be contacted by telephone and advised that settlement has occurred.
Unless you have made specific arrangements with your lender, Mortgages are generally not transferable. This means that when your property is sold any debts associated with a Mortgage or Mortgages together with any other charges, liens, caveats or the like are required to be repaid and discharged. Any debts secured against the property must be paid from the settlement funds and any balance left over will be paid as you direct.
Some lending institutions will require you to complete a "Discharge Authority" and will not commence preparations for settlement they receive the completed authority. This document will be forwarded to you by We Care Conveyancing if required. You must sign the authority and complete any necessary sections and return it to We Care Conveyancing without delay. Failure to do so can result in your settlement being delayed.
Prior to settlement, We Care Conveyancing will advise you of the amount owing under the mortgage and any query regarding this amount should be taken up immediately with your lender.
Land Titles Office:
Any Mortgage, Caveat or Charge registered against your property is required to be discharged at settlement. The fees associated with the removal of these encumbrances are payable by you as the Vendor and are reflected in the adjustment statement.
Capital Gains Tax
Be aware of the potential tax liability associated with your sale. For example unless the property is used as your principal residence, you may be taxed on any profits made by you on the re sale of such property. If you intend to sell within 12 months of a purchase, or if you believe you might be affected by any Capital Gains Taxes, you should contact the Tax Office or your Accountant.
This is a major expense incurred by a Vendor when selling a property through an Estate Agent and can be negotiated between the agent and the vendor. Remember, the commission negotiated by the agent might not necessarily take into account any advertising expenses or bank keeping fees on the deposit. In addition, GST will also be payable on any commission or fee charged by an Estate Agent.
We Care Conveyancing will provide you with an up front fee for your conveyance. There are no hidden fees, you will know exactly what you will be charged for our services.
Prior to Settlement, We Care Conveyancing will ensure that an adjustment of rates and outgoings is undertaken in respect of the property as at the date of settlement. The adjustment of rates will ensure that you as the Vendor pay all rates and taxes due on the property up until settlement date, and the Purchaser pays from the settlement date onwards.
Most Councils will require all rates for the current rating year to be paid at settlement even though they may not be due until a later date. This will be reflected in the adjustments. The adjustments will also require the Vendor to pay any arrears and/or outstanding interest on the rates and charges together with fees pertaining to the discharge of any mortgage or caveat.
The information provided on the We Care Conveyancing web site is not intended to be legal advice. Many factors unknown to us may affect the applicability of any statement or comment that we make on this web site. Should you require advice that applies to your particular circumstances we recommend that you contact us to discuss your needs further.