What are Section 32 Statements?
If you are buying a property in Victoria, Australia, Section 32 Statements are something you need to aware of.
Also known as a vendor’s statement, a Section 32 Statement is a document that tells buyers what they should know about the property title. They are designed to disclose information not readily found by inspecting the property.
The Section 32 statement is separate to the contract of sale, but essential to its performance. Because a vendor’s statement is a legal document it must be factually accurate and complete.
Before a contract of sale is signed, you will be provided with a Section 32 Statement about the property. It’s critical to get the vendor’s statement checked by your own legal practitioner or conveyancer to make sure it is correct.
A Section 32 statement may have details about:
- permits
- insurance
- zoning
- upcoming works
- orders issued by authorities
- covenants
- bushfire risk rating
- outgoings
- easements.
The only signature that needs to be on it is the vendor’s signature. However, a real estate agent may insist that a potential buyer signs the statement as proof you read it.
Read the Section 32 Statements BEFORE making an offer
Sometimes vital information about a property isn't disclosed in the online advertisement.
If you read the Section 32 Statement after making a binding offer, it may be too late. The onus is on you as the buyer to make sure you read the Section 32 Statement before entering a contract to buy a property.
What happens if the Section 32 Statement is incorrect?
If a title search brings to light information that isn't on the Secton 32 Statement, this can effect the property valuation, and hence your ability to borrow and the resale value.
If a Section 32 Statement contains incorrect or insufficient information, a buyer can withdraw from the contract to buy the property. Before you do, however, seek legal advice.
Conveyancing advice
If you are buying a property, and you want advice on a Section 32 Statement, or the Contract of Sale, contact us for a free contract review with an experienced Conveyancing lawyer.
Van Beveren Lawyers have successfully conveyed hundreds of properties in Geelong and the surrounding regions with consistently positive reviews.
As part of the conveyancing team, we draw upon our full complement of property law expertise to help you through land acquisition, ownership, transfer of title, property transactions, leases and more.
Call us on 0429 312 986 or email John@vanbeveren.com.au