If you're selling a home for the first time, you'll understand how important it is to do this the right way and make sure that all the paperwork is correct. After all, you don't want to run into any problems following the event, as you will be fully involved in buying your next property. While it is important to ensure that all documents are carefully created and distributed by your conveyancer, one piece of paper is particularly crucial – your disclosure statement. What is involved here?
While it is important for any buyer to check the facts for themselves and to conduct due diligence in the background, the seller is nevertheless responsible for disclosing a variety of different factors. This is required under legal statute and is typically known as a "Form One Vendor's Disclosure Statement." Within the document will be full details about the transaction and the two parties involved in buying and selling. There will be information related to the buyer's cooling off rights and a confirmation statement from the vendor.
Specifically, however, the form will also contain any details relating to charges, encumbrances, mortgages and other covenants, and this is where the "meat" is to be found.
For example, if some other party has the right to access the land in question (known as an easement), then this must be clearly revealed. For example, sometimes a utility company has this right to access equipment that may not be necessarily related to the property in question.
There may be a restrictive covenant in place, which is a limitation that can restrict the new owner from using the land in a certain way. Full details must be included in this form to outline the scope of these restrictions and confirm how the land may be used.
If you are selling a unit that is part of a community development and may have been managed by a strata company, then this information needs to be included in this form as well. You need to disclose all the rules and bylaws, together with the fees imposed by the management company and everything else that can markedly affect the rights of a new buyer.
Finally, this form must also include details of any amendments or modifications made in the last 12 months.
Getting the Details Right
Remember, these details are crucial, and even though they may have been discussed verbally during negotiation, they must be fully disclosed in this form. Make sure that you always use a professional conveyancer from a company like Johnson & Sendall to take care of these matters for you.