What warranties does a vendor provide when selling their apartment?

When purchasing a property purchasers should thoroughly investigate to ensure they are making a good investment.

Many readers will know of the general principle of “Let the buyer beware”, however there are some protections for purchasers of unit title properties where the vendor has failed to disclose certain matters relating to the property.

The following vendor warranties apply:

• The Pre-Contract Disclosure Statement is accurate;
• There are no additional levies proposed by the Body Corporate;
• There is no undisclosed legal action by or against the Body Corporate;
• The registered Rules are correct and no further changes are proposed;
• The vendor has no knowledge of any proposal that would affect the common property or unit plan.

Vendors who breach these warranties by providing a pre-settlement disclosure statement that is late, incomplete, inaccurate risk having the settlement delayed or the agreement cancelled by the purchaser. The purchaser may also be entitled to seek compensation from the vendor for the cost of remedying the breach.

Vendors and purchasers should seek legal advice from a legal professional if they are unsure about the operation of warranties in their Agreement, to avoid the unpleasant and costly consequences of any breach of warranties. 

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.