Sale or purchase of a small business in South Australia
Form 2 Vendors Statement
Under the Land and Business (Sale and Conveyancing) Act 1994 a Vendor’s Statement for the sale of a small business must be provided to the purchaser if the business is to be sold for a price of up to $300,000 (excluding GST).
This does not include the price paid for:
- Any land sold with the business; and
- Any stock-in-trade the value of which is determined according to the usual selling price of the stock.
The Statement is the Form 2 Vendor’s Statement prescribed in the Land and Business (Sale and Conveyancing) Regulations 2010.
The information disclosed in the Vendor’s Statement includes
- the purchaser’s cooling off rights,
- The trading statement for the last three financial years
- If land is being purchased with the business, information about the land being purchased;
- If land is not being purchased, information about the lease/tenancy agreement relating to the business premises;
- How the business operates (eg, company or sole trader);
- Information on plant, equipment and stock related to the business; and
- Current staffing requirements
Even if land is not being sold with the business the statement must also include Particulars related to Environment Protection and Particulars related to the Livestock Act 1997. These are listed under the things which must be disclosed for the sale of land.