Conveyancing
7. Vendor Warranties
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 12 Jul 2015
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The law requires a vendor to provide the purchaser with certain warranties stating that certain matters do not affect the land concerned from the date of the contract and except as disclosed in the contract.
There are many things that may be a cause of concern for the vendor under the warranties provision and therefore it is recommended that an expert lawyer draft the contract of sale.
Vendor warranties are implied by the legislation and may include some of the following:
that the land is not subject to any adverse affectation such as a compulsory acquisition by the relevant roads authority;
that there is nothing about any building or structure included in the sale that would justify the making of an upgrade or demolition order by the council;
that the section 149 certificate annexed to the contract specifies the true status of the land as to zoning and use;
that the land does not contain any part of a sewer belonging to a recognised sewerage authority;
that there is no application by a neighbour for an order that requires any removal or management of a tree on the property;
that the property doesn’t encroach on neighbouring properties; and
that if the purchaser during the course of their enquires discovers any unauthorised structures on the property then the purchaser may rescind the contract. Common examples of unauthorised structures include
- swimming pools;
- additions to an existing structure;
- pergolas; and
- conversion or inclusion of a garage.
- Non-disclosure of these matters entitles a purchaser to rescind the contract up to completion of settlement so long as the purchaser was unaware of the matter at the date of contract and the purchaser would not have entered into the contract had they been aware of the matter.
- A purchaser may lodge an objection, a requisition for more information or make a claim for compensation where there has been a non-disclosure by the vendor that does not entitle the purchaser to rescind (revoke or cancel) the contract or where the purchaser does not wish to do so.
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