Introduction

When buying property in Victoria, one of the most crucial documents you’ll review is the Section 32 vendor statement. This document contains vital information about the property that can influence your decision to buy. But how can you be sure that the information provided in the Section 32 is true and accurate? In this blog, we’ll explore the steps you can take to verify the accuracy of a Section 32, why this is important, and how a conveyancer can help protect your interests during the property transaction.

What Is a Section 32?

A Section 32 vendor statement, named after Section 32 of the Sale of Land Act 1962, is a legal document that the seller must provide to the buyer before a contract of sale is signed. The document includes critical 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. However, for this to be effective, the information provided in the Section 32 must be accurate and complete. Inaccuracies or omissions could lead to legal disputes, financial losses, or other issues down the line.

Steps to Verify the Accuracy of a Section 32

To ensure that the Section 32 vendor statement is true and accurate, it’s essential to take the following steps:

1. Engage a Conveyancer

The most effective way to verify the accuracy of a Section 32 is to hire a qualified conveyancer. A conveyancer is a legal professional who specializes in property transactions and can review the Section 32 on your behalf. They have the expertise to identify any discrepancies, omissions, or red flags in the document and can advise you on the next steps.

2. Conduct Independent Property Searches

While the Section 32 includes information based on the seller’s disclosures, it’s a good idea to conduct independent property searches to verify the details provided. Common searches include:

• Title Search: Confirms the legal ownership of the property and checks for any encumbrances, such as mortgages or liens.
• Zoning and Planning Search: Verifies the zoning classification and any planning overlays that could affect the property’s use.
• Easements and Covenants Search: Checks for any legal restrictions or rights of way that could impact your ownership or use of the property.

Your conveyancer can arrange these searches for you and cross-check the results against the information in the Section 32.

3. Review Building Permits and Warranty Insurance

If the Section 32 includes information about recent building work, it’s important to verify that the necessary permits were obtained and that the work is covered by warranty insurance. Your conveyancer can review these documents to ensure that the building work complies with legal standards and that you are protected against any defects.

4. Check for Recent Updates or Changes

It’s essential to ensure that the information in the Section 32 is up-to-date. If the property has been on the market for a while, there may have been changes to zoning regulations, planning proposals, or property outgoings. Your conveyancer can check for any recent updates or changes that may not be reflected in the Section 32.

5. Ask the Seller for Clarification

If you have any doubts about the accuracy of the information in the Section 32, don’t hesitate to ask the seller for clarification. This could include asking for additional documentation, seeking explanations for any discrepancies, or requesting that the seller update the Section 32 to reflect any changes.

Why Accuracy in a Section 32 Is Important

Ensuring that the Section 32 vendor statement is accurate is crucial for several reasons:

• Legal Compliance: Providing inaccurate information in a Section 32 can result in legal consequences for the seller, including the buyer withdrawing from the sale or taking legal action.
• Financial Protection: Inaccuracies in the Section 32 could lead to unexpected financial obligations, such as unanticipated rates or taxes, that could impact your budget.
• Avoiding Future Disputes: By verifying the accuracy of the Section 32, you can avoid potential disputes with the seller or other parties after the sale is completed.
  
  

The Role of a Conveyancer in Verifying a Section 32

A conveyancer plays a vital role in ensuring that the Section 32 is accurate and legally compliant. Here’s how they help:

• Expert Review: Your conveyancer will carefully review the Section 32 to identify any issues or inaccuracies. They have the expertise to spot red flags that you might miss.
• Conducting Searches: Your conveyancer will arrange for independent property searches to verify the information provided in the Section 32. These searches help ensure that the details are accurate and up-to-date.
• Liaising with the Seller’s Conveyancer: If any issues are found, your conveyancer will communicate with the seller’s conveyancer to resolve them. This might include requesting additional documentation or negotiating amendments to the Section 32.
• Providing Advice: Your conveyancer will advise you on the implications of the information in the Section 32 and help you make informed decisions about whether to proceed with the purchase.