When somebody is ready to buy a property, it goes without saying that they must ensure that it is fit for the purpose. They will need to get an independent inspection, and this expert will need to look closely at the condition of the structure to determine whether a new owner could have any cause for concern. Yet a prospective buyer must also be sure of their ground from a legal perspective as well. They need to make sure that they have the right to buy the property in the first place and will want to know if there are any restrictions on subsequent use. In this case, they will rely on a specific document known as a disclosure statement. What is involved here?
When a buyer and seller come together to talk about a real estate transaction, both parties will typically be open and honest. The seller, in particular, will want the buyer to know all about the building and will want to tell them if there are any issues or any constraints attached to the sale. However, all of this information will need to be included within a formal disclosure statement as well and, crucially, the seller will need to do their research and make sure that this document is comprehensive. This analysis is particularly important if they had not been associated with the property for a lengthy period or might be flipping it for short-term gain.
Form One Disclosure
The disclosure statement (also known as a form one) is a crucial document, and if it is not complete, it could sometimes void the sale. If anything is left out that could prove to be pivotal, then the buyer has the right to walk away, and the seller may need to absorb their costs.
Uncovering the Detail
Sometimes, a specific disclosure may prove to be a dealbreaker as it may place restrictions on the buyer that they cannot accept. For example, there may be an encumbrance registered against the title that prohibits any development, or a third party may have a right to access the land for a particular purpose. On the other hand, a local government may have an interest in the property from a heritage perspective, and the buyer may not be able to modify the structure without specific approval.
Both buyer and seller should enlist the help of an expert to help them draft this crucial addendum. From a buyer's perspective, this is why it's so important to work with a conveyancer from start to finish. Reach out to resources like Sargeants Casey for conveyancing services.Share
17 January 2020
If you are interested in buying your first property, you will want to make sure that you make the right choice. My name is Kenny and last year, I finally got my foot on the property ladder. It was a long journey which took many years. First, I had to save a deposit which took a long time. Once I had my deposit, I had to find a property which I liked and which I could afford. I contacted a real estate company who helped me as I conducted my search. I am pleased to say that I am really happy with my new home.