What is a Section 32 Statement?
A section 32 statement is a mandatory legal document that is provided by the vendor (seller) of a property to the purchaser (buyer) prior to the sale. This document outlines important information about the property, including details about the title, encumbrances, zoning, and any other relevant information that could impact the value or use of the property.
The section 32 statement is named after section 32 of the Sale of Land Act 1962 (Vic), which requires that this document be provided to the buyer prior to the sale.
What Information is Included in a Section 32 Statement?
The section 32 statement includes a range of information about the property being sold, including: information about:
The title of the property, including the registered owner and any encumbrances on the title.
The zoning of the property, including any restrictions or conditions that may impact the use of the property.
Any building approvals that have been granted for the property, including any conditions that may be attached to those approvals.
Any easements that exist on the property, including any restrictions or limitations on the use of the property.
Any outgoings that may be payable on the property, including rates, taxes, and other charges.
Any covenants that may be attached to the property, including any restrictions or limitations on the use of the property.
How to Obtain a Section 32 Statement?
A Section 32 statement is typically prepared by the seller's legal representative, and it is their responsibility to ensure that the statement is accurate and up-to-date. The buyer can obtain a copy of the statement by requesting it from the seller's legal representative or the property agent. It is important to note that the statement must be provided to the buyer before the sale is completed, so it's essential to allow sufficient time for the statement to be prepared and reviewed.
Consequences of Non-Compliant or Missing Section 32
Failing to provide a compliant or complete Section 32 statement to the buyer can have serious consequences. Below are some of the ramifications of failing to provide a Section 32 statement, or providing a non-compliant statement:
Legal action being taken against the seller by the buyer. The buyer may seek compensation for any losses they incur as a result of the inaccuracies or omissions in the Section 32 statement.
If a buyer is not provided with a Section 32 statement, they may choose to withdraw from the sale, resulting in the loss of the sale for the seller.
Providing a non-compliant or inaccurate Section 32 statement can damage the reputation of the seller, making it difficult for them to sell properties in the future.
Financial implications for the seller, as they may be required to compensate the buyer for any losses they incur as a result of the inaccuracies or omissions in the statement.
Final Thoughts
The section 32 statement is an important document in the conveyancing process and it is essential that both the buyer and the seller understand its importance and take the necessary steps to ensure that the information it contains is accurate and up-to-date.
Whether you are a buyer or a seller, it is important to work with a knowledgeable and experienced conveyancer to ensure that the section 32 statement is prepared and reviewed correctly and that any issues or encumbrances are identified and addressed in a timely manner.
For any assistance with your contract of sale & section 32 vendor’s statement, contact our team on 0450 226 806 or send your enquiry to reem@haciconveyancing.com.au to obtain legal advice from our expert property lawyers.
Please note that this post is not a substitute for professional legal advice and should not be treated as such. It is simply a brief summary and general overview of relevant topics and is not meant to be exhaustive. For specific legal guidance or expert assistance, it is recommended to seek the advice of a professional.
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