Every lender has their own terms and conditions, and this is intended only as a general guide to understanding this topic. Contact us to discuss your individual circumstances.
Contract of sale
A prospective buyer makes an offer to buy a property by signing a contract of sale. The offer is accepted when the seller signs the contract. A property is sold when both buyer and seller have signed the contract of sale.
The contract of sale contains:
✓details of the property
✓names of the seller and buyer
✓details of the seller’s estate agent, if they have one
✓details of the seller’s and buyer’s legal practitioner or conveyancer, if they have one
✓the balance owing at settlement
✓any special conditions such as ‘subject to finance’.
The contract must clearly specify whether the sale price includes or excludes the goods and services tax (GST) and, if it is included, how the amount will be calculated.
Generally, the GST only applies to the purchase of new homes. It does not apply to established homes unless the seller is registered for GST.
Vendor’s statement (also known as a section 32)
Before a property is sold, the seller is required to provide the buyer with a vendor’s statement.
This document is also called a ‘section 32’, because the information the seller must provide is outlined in section 32 of the Sale of Land Act 1962.
The vendor’s statement is:
✓usually prepared by the seller’s legal practitioner or conveyancer
✓signed by the seller
✓attached to the contract of sale
✓made available to prospective buyers along with the contract of sale, usually by the estate agent and before the sale or auction.
It is a legal document and must be factually accurate and complete. If it contains incorrect or insufficient information, a buyer may be able to withdraw from the sale or take legal action.