So you’ve decided to put your property on the market and you’re thinking “what happens next”? One of the first things you will need to do is contact your lawyer or conveyancer to get a "Section 32" prepared.
What is a Section 32?
A Section 32, also known as a Vendor’s Statement, is a legal document that is provided by the seller (vendor) to the purchaser before a Contract of Sale is signed. Its name derives from Section 32 of the Sale of Land Act, which requires vendors to provide a signed statement containing certain information about the property to purchasers before a Contract of Sale is entered into.
What information is included in a Section 32?
The following information is commonly included in Section 32 statements:
- A current title search of the property, which will state who owns the property, whether there is a mortgage over the property and whether there are any covenants which may require the property owner to do or not do something
- A copy of the plan
- An owners corporation certificate (if required)
- A mine report showing whether any mines have been recorded on the property
- A planning property report from the council
- A sewer plan
- The services that are connected such as electricity, gas, water, sewerage, telephone services
- Any notices that have been received from authorities or neighbours regarding the property
- Building permits if there has been any building works done of the property in the last 7 years
- Current rates notice
What happens if a Section 32 is incomplete or incorrect?
Section 32 statements are legal documents which must be accurate. If a vendor provides false information or fails to provide all the required information, they may be found guilty of a criminal offence. Also, if a Section 32 is incorrect or insufficient, the purchaser may be entitled to withdraw from the sale.
What happens once the Section 32 has been completed?
Once the Section 32 has been completed and signed by the Vendor, the document is handed to the real estate agent who then makes the Section 32 available to prospective purchasers. If you are selling your property without the assistance of an agent, the document can either be provided directly to the purchaser’s lawyer or it can be provided to the Vendor to be passed onto the purchaser.
If you are selling your property and need a Section 32 prepared, contact OFRM to speak to a member of our Conveyancing team on 03 5445 1000 who will be able to assist you.