Introduction

When it comes to buying or selling property in Victoria, Australia, a crucial document comes into play—Section 32. Known as the Section 32 vendor statement, this legal document is required by law and is fundamental to real estate transactions in the state. But what exactly is Section 32, and why is it so important in real estate?

In this guide, we’ll explore what Section 32 is, why it exists, and how it impacts both buyers and sellers. By the end of this article, you’ll have a clearer understanding of this vital document and why you should pay close attention to it during your next property transaction.

What Is a Section 32?

A Section 32 vendor statement is a legal document that the seller (or vendor) of a property must provide to any potential buyer before a contract of sale is signed. Its name comes from Section 32 of the Sale of Land Act 1962, which mandates that sellers disclose important information about the property that may affect the buyer’s decision.

The purpose of this document is to ensure that buyers have all the information they need to make an informed purchase. This includes information that isn’t immediately obvious from a standard property inspection, such as details about easements, zoning, or any restrictions on the property.

Why Is Section 32 Important in Real Estate?

The Section 32 real estate document provides transparency for potential buyers and protects them from unforeseen legal or financial obligations related to the property. For sellers, it serves as a legal obligation they must fulfill to ensure the sale is compliant with the law.

Failing to provide an accurate and complete Section 32 vendor statement can result in serious legal consequences for the seller, including the buyer being able to withdraw from the contract. Incomplete or defective Section 32 statements are one of the most common causes of disputes in property transactions.

What Is Included in a Section 32?

The Section 32 vendor statement must include various details about the property that may affect the buyer’s decision. Here’s a breakdown of what typically appears in the statement:

1. Vendor’s Details:
   This section includes the full name and contact details of the seller.
2. Title Information:
   This demonstrates that the seller legally owns the property and includes the title details, such as covenants and easements.
3. Mortgages and Charges:
   Any outstanding mortgages, liens, or other financial obligations tied to the property are disclosed here.
4. Zoning Information:
   This specifies how the land can be used, whether for residential, commercial, or other purposes.
5. Outgoings:
   This section details any council rates, water rates, or other financial obligations that the buyer will be responsible for after the sale.
6. Easements and Restrictions:
   This informs the buyer of any legal restrictions or easements affecting the property.
7. Building Permits:
   Details of any building work done on the property within the last seven years, along with any necessary permits and warranties, should be included.
   
   

How to Get a Section 32 in Victoria

If you’re selling a property, you’ll need to arrange for a Section 32 vendor statement to be prepared. Most sellers engage a conveyancer or a lawyer to help them with this. The process involves gathering the necessary documents, conducting searches with relevant authorities, and compiling the information into a legally compliant document.

For buyers, it’s crucial to review the Section 32 carefully before signing any contract. This is where a conveyancer or lawyer comes in handy—they can review the statement and advise you on any potential red flags.

How Long Does It Take to Review a Section 32?

The time it takes to review a Section 32 depends on the complexity of the property and the issues disclosed in the document. On average, a conveyancer or lawyer might take anywhere from a few days to a week to thoroughly review the statement and ensure everything is in order.

If there are discrepancies or missing information, this can delay the process further. However, it’s essential not to rush this step; taking the time to review the Section 32 properly can save you from future headaches.

How Do You Know If a Section 32 Is True and Accurate?

To ensure the accuracy of a Section 32 vendor statement, it’s vital to hire a qualified conveyancer or lawyer. They will conduct thorough searches and cross-check the information in the Section 32 with government records, title documents, and other legal sources. They will also look for any inconsistencies, such as missing easements or undisclosed zoning restrictions.

Remember, an inaccurate or incomplete Section 32 can lead to the buyer pulling out of the deal or legal action being taken against the seller. Always seek professional help to verify the document.