Property purchase is a big transaction and buyers invest a lot of money in it. They need to make an informed decision based on an understanding of the strengths and weaknesses of the property. The vendor is legally obligated to disclose all relevant information including the items included in the Conveyancing (Sale of Land) Regulation. If a vendor fails to disclose the information, they can get into legal trouble down the line.
Some of this information is disclosed in the form of Vendor Warranties in the contract of sale. In this disclosure, a seller warrants that the property doesn’t have any adverse Affectations on the date of the contract aside from the ones already mentioned in it. A vendor must attach several documents to the contract of sale and ensure all warranties are stated clearly.
The regulation includes a number of prescribed warranties and they include council upgrade order, railway or roadway proposal, education proposal, boundary encroachments or problems with titles, electricity line proposal, and an interim heritage order. All of these actions can compromise the future of the property and its value so the buyer should be made aware of them.
Changes after 2017
The Conveyancing (Sale of Land) Regulation was updated in 2017. The update simplifies existing regulations and makes them easier to understand. It also updates terminology and includes new disclosure agreements. One of these alterations includes warranties for investigation of Strata Renewal Proposal.
From 1st of September, 2017, all contracts should include a vendor warranty that the property’s strata scheme hasn’t passed a motion for further investigations into Strata Renewal Proposal. It should also mention no strata renewal committee is established to give effect to the motion and no minutes of the meeting recording this resolution have been prepared. It’s important to keep these changes in mind when examining the contract of sale.
If you want to know more or are interested in our Conveyancing Solicitor Sydney here at Conveyancing Shop, feel free to contact us through our form or call on 61-2 9686 3366
