Introduction

When buying property in Victoria, one of the critical steps is reviewing the Section 32 vendor statement. This document provides essential information about the property and is vital for ensuring that buyers make informed decisions. However, many buyers often wonder, how long does it take to review a Section 32? In this blog, we’ll explore the factors that influence the time it takes to review a Section 32, what the review process involves, and why it’s crucial not to rush this important step.

What Is a Section 32?

Before we dive into the review process, let’s quickly recap what a Section 32 vendor statement is. The Section 32 is a legal document that the seller must provide to the buyer before a contract of sale is signed. It includes important details about the property, such as title information, zoning restrictions, easements, covenants, and outgoings.

The purpose of the Section 32 is to ensure that the buyer has all the necessary information about the property to make an informed decision. If the document is incomplete or contains inaccuracies, it could lead to legal issues down the line, including the buyer withdrawing from the sale.

Factors Affecting the Time to Review a Section 32

The time it takes to review a Section 32 can vary depending on several factors:

1. Complexity of the Property

The more complex the property, the longer it may take to review the Section 32. For example, properties with multiple easements, covenants, or planning overlays require a more thorough examination to ensure that all legal obligations are understood. If the property is part of a unit development or has been subject to recent building work, these factors also add complexity to the review process.

2. Thoroughness of the Conveyancer

The time it takes to review a Section 32 largely depends on the conveyancer’s thoroughness. A diligent conveyancer will meticulously examine every detail in the document to ensure that all the information is accurate and complete. This may involve conducting additional searches or seeking clarification from the seller’s conveyancer, which can extend the review time.

3. Additional Searches Required

In some cases, the information provided in the Section 32 may need to be verified through additional searches. For example, if there are concerns about zoning regulations or potential environmental risks, your conveyancer may recommend further investigation. These searches can add extra time to the review process but are crucial for protecting your interests.

4. Timeframe and Urgency

The time it takes to review a Section 32 can also be influenced by the buyer’s timeframe and the urgency of the transaction. If a buyer needs to move quickly, the conveyancer may expedite the review process. However, it’s important to balance speed with thoroughness to avoid overlooking critical details.

What Does the Review Process Involve?

Reviewing a Section 32 vendor statement involves several key steps:

1. Examining Title Information

The first step in the review process is to examine the title information to confirm that the seller is the legal owner of the property and has the right to sell it. Your conveyancer will also check for any encumbrances, such as mortgages or liens, that could affect your ownership of the property.

2. Checking Zoning and Planning Information

Next, your conveyancer will review the zoning information to ensure that the property’s use aligns with your intentions. They will also check for any planning overlays or restrictions that could impact future development or modifications to the property.

3. Assessing Easements and Covenants

Easements and covenants can significantly affect how you use the property. During the review, your conveyancer will assess any easements that grant rights to others to use part of the property (such as utility access) and any covenants that impose restrictions on property use or development.

4. Verifying Outgoings

The Section 32 should include details of any ongoing costs associated with the property, such as council rates, water rates, and land tax. Your conveyancer will verify these outgoings to ensure you are aware of the financial obligations you will assume as the property owner.

5. Reviewing Building Permits and Warranty Insurance

If any building work has been carried out on the property in the last seven years, the Section 32 must include details of the permits and warranty insurance. Your conveyancer will review these documents to ensure that the work was done to a high standard and that you are protected against defects.

Why It’s Important Not to Rush the Review

While it’s understandable to want to move quickly with a property purchase, it’s crucial not to rush the review of the Section 32 vendor statement. Rushing through the review process increases the risk of missing important details that could impact your ownership or use of the property. It’s far better to take the time needed to ensure that the Section 32 is accurate and complete, even if it means a slight delay in the transaction.