I'm getting really confused as to what the 'Additional Vendor Statement' means.
This additional Vendor Statement is to be attached to the standard Vendor Statement (completed as appropriate and signed by the Vendor) where: - the land is to be sold subject to a mortgage (registered or unregistered) which is not to be discharged before the purchaser becomes entitled to possession (or receipts of rents and profits); and/or - the land is to be sold pursuant to a terms contract which obliges the purchaser to make two or more payments (other than a deposit or final payment) to the vendor after the execution of the contract and before the purchaser is entitled to a conveyance or transfer of the land.
i'm really struggling to find layman's terms on what this actually means for a buyer. In my mind, i understand it to mean the vendor wants the buyer to take over their mortgage repayments (perhaps becuase they don't want to break out of a fixed rate mortgage)?
Is a property worth any more or any less if it comes with an "additional vendors statement"?
I'm getting really confused as to what the 'Additional Vendor Statement' means.
This additional Vendor Statement is to be attached to the standard Vendor Statement (completed as appropriate and signed by the Vendor) where: - the land is to be sold subject to a mortgage (registered or unregistered) which is not to be discharged before the purchaser becomes entitled to possession (or receipts of rents and profits); and/or - the land is to be sold pursuant to a terms contract which obliges the purchaser to make two or more payments (other than a deposit or final payment) to the vendor after the execution of the contract and before the purchaser is entitled to a conveyance or transfer of the land.
i'm really struggling to find layman's terms on what this actually means for a buyer. In my mind, i understand it to mean the vendor wants the buyer to take over their mortgage repayments (perhaps becuase they don't want to break out of a fixed rate mortgage)?
Is a property worth any more or any less if it comes with an "additional vendors statement"?
would greatly appreciate a simple explanation..
To tell the truth, the above tells me nothing specific. If it tells you nothing, then you need someone to explain to you *exactly* what it means, that someone preferably being your own counsel.
If a satisfactory explanation is not forthcoming, then run away. Do *not* just assume that it will be hunky-dory. The vendor put it there for a purpose, and the purpose serves *their* interests, not *your* interests. If you do not understand *how* it serves their interests, then don't walk, run away.
Edit: Now let us enter realms of speculation: Note that I do not *know* this to be the case, and if you do not *know* what is the case, then you should not commit. My speculation is that the vendor is in some arrangement that costs money to get out of (like, as you suggest, a fixed-interest loan, probably at an unfavourable rate). The vendor wants you to take on this bad commitment so they don't have to pay to get out of it. In that case, the property is worth less by exactly what it would cost the vendor to break that commitment.
I'm getting really confused as to what the 'Additional Vendor Statement' means.
This additional Vendor Statement is to be attached to the standard Vendor Statement (completed as appropriate and signed by the Vendor) where: - the land is to be sold subject to a mortgage (registered or unregistered) which is not to be discharged before the purchaser becomes entitled to possession (or receipts of rents and profits); and/or - the land is to be sold pursuant to a terms contract which obliges the purchaser to make two or more payments (other than a deposit or final payment) to the vendor after the execution of the contract and before the purchaser is entitled to a conveyance or transfer of the land.
i'm really struggling to find layman's terms on what this actually means for a buyer. In my mind, i understand it to mean the vendor wants the buyer to take over their mortgage repayments (perhaps becuase they don't want to break out of a fixed rate mortgage)?
Is a property worth any more or any less if it comes with an "additional vendors statement"?
would greatly appreciate a simple explanation..
It's a requirement in Victoria, I don't know about other states. I've never seen it used in Qld. Is there vendor finance in this deal?
You need to talk with your solicitor or conveyancer about this.
Any expressed market opinion is my own and is not to be taken as financial advice
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