What Is a Section 32 Vendor Statement in Victoria?
A Section 32 Vendor Statement is one of the most important documents used when property is sold in Victoria.
It must be provided to a purchaser before they sign the Contract of Sale and contains information about the property that may not be apparent from a physical inspection.
What is a Section 32 Vendor Statement?
The document takes its name from Section 32 of the Sale of Land Act 1962 (Vic).
It is a disclosure statement prepared on behalf of the vendor and usually accompanies the Contract of Sale. Its purpose is to provide a prospective purchaser with prescribed information about the title, ownership and other matters affecting the property.
The vendor must sign the Section 32 Statement before it is given to a prospective purchaser.
What information does it contain?
The exact documents and information required will depend on the property. A Section 32 Statement may include details about:
• The registered proprietor and title particulars;
• Mortgages, caveats, covenants, easements and other restrictions affecting the title;
• Council rates, water charges, land tax and other outgoings;
• Planning information, zoning and overlays;
• Services connected or available to the property;
• Building permits issued during the preceding seven years, where applicable;
• Owners corporation information for apartments, units and other affected properties;
• Notices, orders or proposals affecting the property; and
• Whether the land is in a designated bushfire-prone area.
Copies of the title, plan of subdivision and relevant certificates are generally attached to the statement.
Why is it important for vendors?
The Section 32 Statement should be prepared carefully and as early as possible in the sale process.
If required information is missing, inaccurate or misleading the sale may be delayed and the purchaser may have a right to rescind the Contract in certain circumstances. Whether a right to rescind exists will depend on the particular omission, the circumstances and the applicable law.
Vendors should provide their conveyancer with complete and accurate information about the property including building works, notices, services, leases, owners corporation matters and any other issue that may need to be disclosed.
If something changes after the statement has been prepared the vendor should notify their conveyancer promptly so that the documents can be reviewed and updated if necessary.
What should purchasers do before signing?
A purchaser should have the Contract of Sale and Section 32 Statement reviewed before signing or making an unconditional offer.
The documents may reveal restrictions on how the property can be used, proposed developments, owners corporation costs, planning controls, easements or other matters that may influence the decision to purchase.
A contract review also provides an opportunity to identify unusual or unfavourable special conditions and recommend any further enquiries or conditions that may be required.
Does a Section 32 Statement replace property inspections?
No. A Section 32 Statement is a legal disclosure document but it does not provide a complete assessment of the physical condition of the property.
Purchasers should consider obtaining appropriate building, pest and other specialist inspections before committing to the purchase. Depending on the property and their intended use they may also need advice about planning, building approvals, boundaries, services or proposed developments.
How I can assist
If you are selling I can prepare the Contract of Sale and Section 32 Vendor Statement and help ensure the required information is obtained and disclosed.
If you are buying I can review the Contract and Section 32 Statement, explain the important terms in plain English and identify matters that may require further investigation before you sign.
Please contact me if you are preparing to sell or would like a Contract reviewed before purchasing property in Victoria.
This information is general in nature and does not constitute legal advice. Requirements may change, and advice should be obtained for your individual circumstances.