Statement by a Vendor of a Small Business - Estate Agents Act 1980 Section 52 Form 2

Aug 31, 2026

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Statement for vendor and purchaser use under section 52 of the Estate Agents Act 1980, defining a small business by the value of goodwill, plant, equipment and fittings sold. Sets out required completion of Form 2, Regulation 8, and the key purpose of notifying purchasers about trading and financial position before contract signing or deposit payment. Includes sections on vendor obligations, purchaser rights and notices, business operating report reporting periods, practising accountant statements, vendor declaration, and purchaser acknowledgement of receipt.

LanguageEnglish

CategoryLetters

FormatDOCX

Pages11

Reading Time4 min

AccessFree to download

Introduction

Definitions and purpose

Section A - Important information for Vendor

Signing and delivery requirements

Accounting period and warning to vendor

Section B - Important information for Purchaser

Due diligence and minimum document requests

Purchaser rights, trial period, and expert advice

Section C - Business information

Section D - Vendor's Business Operating Report

Section E - Vendor's declaration

Section F - Acknowledgement of Receipt by the Purchaser

Statement by a vendor of a small business Estate Agents Act 1980 Section 52Form 2, Regulation 8, Estate Agents (General, Accounts and Audit) Regulations 2018 Introduction For the purposes of section 52 of the Estate Agents Act 1980, a small business is a business in which the goodwill, plant, equipment and fittings being sold have a total price of $450 000 or less. In accordance with section 52(8), the reference to price in this paragraph does not include an amount representing the value of a liquor licence or permit under the Liquor Control Reform Act 1998. This Statement contains 6 sections: Section A – Important information for Vendor Section B – Important information for Purchaser Section C – Business information Section D – Vendorʼs Business Operating Report Section E – Vendorʼs declaration Section F – Acknowledgement of Receipt by the Purchaser In this Statement a person who is seeking to sell a small business is referred to as a ʻvendorʼ and a person who is seeking to buy a small business is referred to as a ʻpurchaserʼ. Section A—Important information for vendor A vendor must sign this Statement. A vendor or their estate agent must give the purchaser or their representative a completed and signed copy of this Statement before the purchaser or their representative: signs the contract OR pays the deposit with respect to the sale of a small business. The financial and accounting information in the Business Operating Report in Section D must: cover the trading of the business for the current accounting period (year to date figures); and cover the trading of the business for the previous two accounting periods, unless the vendor has not owned the business for that long; and include a statement by a practising accountant that the information is in accordance with the vendor's books of account. Item 2 in the Business Operating Report in Section D lists the people who are practising accountants for the purpose of this Statement. An accounting period is a financial year; or a continuous period of 12 months; or if a particular accounting period was changed for book-keeping purposes that period may be treated as an accounting period. A part year is the period between the end of accounting period B and the end of the most recent quarter before this statement was signed. If this statement was signed in the first quarter of the new financial year (or equivalent period as set out at 4 above), the part year accounting period column in the Business Operating Report in Section D is not applicable. A single asterisk, (*), means strike out the item if it is not applicable. Warning to the Vendor If this Statement is incomplete or inaccurate, the purchaser may avoid the contract provided they do so within three months of signing the contract and have not already taken possession of the business. If a purchaser avoids a contract on these grounds, the vendor must repay any money paid by the purchaser under the contract. A vendor who fails to give a purchaser or their representative this Statement or gives a Statement that is incomplete, is liable for a fine of up to 10 penalty units. Section B—Important information for purchaser Section 52 of the Estate Agents Act 1980 requires that a purchaser of a small business or their representative be given a completed and signed copy of this Statement by the vendor or their estate agent. The purpose of this Statement is to notify the purchaser of certain particulars concerning the trading and financial position of the business to be acquired. The information contained in this Statement does not replace due diligence undertaken by the purchaser. It provides key financial information which will assist the purchaser to identify those matters where further information and documentation is required. At a minimum, the purchaser should ask the vendor to provide copies of: the Balance Sheet and the Profit and Loss Statement for the business for the last two accounting periods the most recent Tax Assessment

FAQs

What qualifies a business as a “small business” under this statement?

It is a business where goodwill, plant, equipment and fittings being sold have a total price of $450,000 or less.

What must the vendor do before the purchaser signs the contract or pays the deposit?

The vendor or their estate agent must provide the purchaser (or representative) with a completed and signed copy of the statement before those events occur.

When may a purchaser avoid the contract and what happens if they do?

If the statement is incomplete or inaccurate, the purchaser may avoid the contract within three months of signing and must not have taken possession. If avoidance occurs, the vendor must repay money paid under the contract.

Aug 31, 2026

Upload by Xiajie