Introduction

If you’re planning to sell a property in Victoria, one of the most important legal documents you’ll need is the Section 32 vendor statement. This statement is mandatory under Victorian law and must be given to any prospective buyers before the contract of sale is signed. But how do you go about obtaining a Section 32? What information is required, and who should you turn to for help? In this blog, we’ll take you step-by-step through the process of obtaining a Section 32 in Victoria and highlight the key things you need to know to ensure it’s accurate and legally compliant.

What Is a Section 32?

Before we dive into the steps, it’s essential to understand what a Section 32 is. The Section 32 vendor statement, named after Section 32 of the Sale of Land Act 1962, is a legal disclosure document provided by the seller to the buyer. This document outlines critical details about the property that may not be immediately obvious, such as title information, easements, zoning restrictions, and outgoings.

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.

Step 1: Gather the Necessary Information and Documents

The first step in obtaining a Section 32 is to gather all the relevant documents and information about the property. This includes:

• Title details: A copy of the title that proves ownership of the property.
• Zoning information: Details of the zoning for the land, which will indicate what the land can legally be used for (e.g., residential, commercial).
• Easements and covenants: Any legal restrictions or rights of way that affect the land, such as utility access or building restrictions.
• Outgoings: Information about any outstanding rates, taxes, or other outgoings (e.g., council rates, water rates).
• Building permits and warranty insurance: If any building work has been carried out on the property in the last seven years, details of the permits and warranties must be included.

You will likely need to contact various authorities, such as the local council, utility providers, and the Land Titles Office, to collect this information.

Step 2: Hire a Conveyancer or Lawyer

Although it’s possible to prepare a Section 32 on your own, most sellers in Victoria choose to hire a conveyancer or lawyer to do it for them. This is because the Section 32 requires a high level of legal knowledge to ensure all the necessary disclosures are made and the document is compliant with the law.

A conveyancer specializes in property law and can guide you through the entire process of preparing the Section 32. They will gather the required documents, review them for accuracy, and compile them into a legally valid Section 32 statement.

Hiring a conveyancer also provides peace of mind, as they are responsible for ensuring that the document is correct and that no critical information is missing. This reduces the risk of legal disputes with buyers down the line.

Step 3: Conduct Property Searches

Once you’ve hired a conveyancer or lawyer, they will conduct various searches to gather additional information about the property. These searches typically include:

• Title search: Verifies the legal ownership of the property and identifies any mortgages or charges against it.
• Planning certificate: Confirms the zoning of the property and any planning overlays that might affect its use.
• Land information certificate: Details the rates, taxes, and other outgoings associated with the property.
• Building permit search: Reveals whether any building permits have been issued for work on the property in the last seven years.

The results of these searches will be included in the Section 32 vendor statement to ensure that buyers have a complete understanding of the property they’re purchasing.

Step 4: Prepare the Section 32 Statement

With all the necessary documents and information in hand, your conveyancer or lawyer will prepare the Section 32 vendor statement. This document must include all relevant details about the property, as required by law. The Section 32 should be clear, accurate, and complete, as any omissions or inaccuracies could lead to legal issues later.

The final statement will typically include:

• Vendor’s details
• Title details (including mortgages and encumbrances)
• Easements and covenants
• Zoning information
• Outgoings (council rates, taxes, etc.)
• Building permits and warranty insurance

Once the Section 32 is prepared, your conveyancer will provide you with a copy to review.

Step 5: Provide the Section 32 to Prospective Buyers

The final step in the process is to provide the completed Section 32 to any interested buyers before the contract of sale is signed. In most cases, your real estate agent will handle this, ensuring that the document is available to potential buyers when they express interest in the property.

It’s essential that buyers have the opportunity to review the Section 32 before committing to the purchase, as it contains critical information that could affect their decision.