Vendor Responsibilities Initial Settlement
The rates for the property are to be paid up to date.
The vendor usually pays the rates to the nearest quarter following settlement. The buyer is responsible for the rate payments following settlement and the buyer adds the amount of rates payable from settlement to the end of the quarter onto the settlement statement.
The house and chattels should remain in the same condition as they were when the buyer inspected them before signing the contract. The buyer is entitled to a pre-purchase inspection and if the house or some of the chattels have been damaged this could delay settlement or result in a lower price being paid for the home.
The house should remain insured until settlement. If a disaster strikes the seller still owns the house until settlement day and a disaster could result in no home and no sale.
The vendor warrants that all building and alteration work carried out has the consent of the local Council and complies with the Building Act 1991 and or 2004. Councils are getting a lot tougher on this since the leaking homes scandal and retrospective consents or approvals of work carried are not always possible.
All chattels and fixtures being sold with the house (built in or free standing fire, stove, air conditioning unit etc) are free of any charge – ie the seller is not still paying for the items in a Hire Purchase arrangement.