Also known as a Vendor’s Statement, the Section 32 statement is required by law to be presented to the purchaser, by the vendor before a property is sold and before a Contract of Sale is signed. Section 32 gets its name from the Sale of Land Act 1962. The information required is set out in Section 32 of this act.
The Section 32 Statement should always be prepared by a qualified and experienced lawyer. Whilst not required by law, the Section 32 Statement is a legal document and as such, the information and advice should be coming from a sound legal background.
Generally speaking, the vendor’s solicitor will prepare the Section 32 document and then provided to the real estate agent. This is in turn handed over to any potential purchasers to review (through their own lawyer or conveyancer). In most cases these days, the Section 32 can be delivered amongst the parties via electronic means such as email.
The Section 32 needs to be signed by the vendor only. And the document should then be available prior to auction or sale for review.
The Section 32 statement contains information about the property’s title, such as:
- Mortgages, covenants, easements and zoning
- Outgoings (for example, rates)
- Declaration if located in a bushfire-prone area
- Statutory warnings to the purchaser
- Vendor’s details
- Title details
- Information regarding building permits issued in the past 7 years
- Particulars of owner-builder warranty insurance
- If there is access to the property by road
- Information on services connected to the property.
There is a lot at stake when purchasing a property, so it is essential that you have your lawyer or conveyancer review the Section 32 Statement prior to going to auction or sign a Contract of Sale.
Titlexchange™ are a team of experienced property solicitors all across Australia. Our experience covers a wide range of matters such as the transferring of titles on existing houses, apartments and body corporate entities, purchasing land and off-the-plan packages, spousal transfers, Contract of Sale reviews, Building Contract reviews, Self-Managed Super Fund (SMSF) transfers and more.
We would love to have a chat and see how we can help you get your transaction settled. If you’d like further information, speak to one of our team by arranging a quick call here.