What Is A Section 32 or Vendor Statement?

about 1 year ago

Buying or selling a home is a major financial decision – and paperwork is an inevitable part of the process.

As a seller, one of the key documents you'll need to provide is a vendor statement. This document may seem routine, but it's far from just a formality. An accurate, detailed vendor statement lays the crucial groundwork for a smooth property handover between buyer and seller.

So, what exactly does this seemingly important statement contain? Consider a vendor statement as the seller's guidebook to transacting property. It gives potential buyers a comprehensive overview of the home's physical condition, included features, and full disclosure of any issues or restrictions on the land.

The Details of a Vendor Statement

The vendor statement requires the seller to make extensive legally binding representations about every aspect of the property, helping the buyer make a fully informed decision when weighing the purchase. It also reduces the risk of misunderstandings or disputes arising further down the track.

Preparing a thorough vendor statement demonstrates the seller's genuine desire for an ethical transaction. Rather than glossing over defects, the statement shows the property "warts and all". This good-faith gesture sets the tone for a positive experience.

A transparent statement means no nasty surprises for buyers when moving day comes. And for sellers, it assures you won’t later be accused of concealing known defects or misrepresenting the property's condition.

So, while pouring over plumbing fixtures and detailing garden foliage may seem tedious, the diligence is worth it.

Let’s look at vendor statements in more detail.

What to Disclose in a Vendor Statement

So, you've decided to sell your property. After taking glamorous photos and setting an ambitious price, your mind turns to the vendor statement. This crucial document is your chance to showcase the home in its best light, right?

Not quite. While the vendor statement should emphasise the property's positives, its core purpose is full disclosure. This means being upfront about defects, issues or restrictions on the land – even if it means turning buyers off.

So, what specifically should your rigorous vendor statement contain?

Firstly, the basic facts:

address
zoning
property size,
and dwelling type.

Next, you’ll also confirm your legal authority to sell the property. If you do not fully own it, you’ll need to outline any mortgages or shared ownership structures.

Then comes the nitty-gritty of what is included in the sale, where you’ll provide an extensive list of fixtures, fittings and goods that will remain at the property. Be meticulously detailed here, right down to the pot plants in the garden and coat hooks in the entry. Also, outline anything not included, like furniture or artwork you intend to take.

In this aspect of the vendor statement, you’ll also be responsible for highlighting any repairs or defects, along with any warranties or inspection reports you have. Don't shy away from revealing ugly realities like termite damage, leaky roofs, faulty wiring or underlying soil issues. You’ll only come out ahead by allowing full transparency.

Final Takeaways

As we’ve discussed, a vendor statement comprehensively outlines the property's condition and inclusions, which allows buyers to make informed decisions and sets clear expectations.

But you must always remain meticulously detailed, transparent and accurate. Disclose defects unflinchingly – even if it means turning some buyers away; you’ll build trust and credibility this way.

Most importantly, legally and ethically, you must reveal all known issues. Omitting or misrepresenting problems exposes you to liability if buyers discover defects post-purchase.

Selling your home is a major milestone. While documentation like vendor statements may seem tedious, don't take shortcuts. Trust us, as experts in property management and real estate, we’ve seen it all.