Buying a Home? Why the "Section 32" is the Most Important Document You’ll Read
Finding your dream home is an emotional journey. After weeks of open inspections and searching online listings, it’s easy to get swept up in the excitement when you finally find "the one." However, before you raise your hand at an auction or sign a contract, there is one crucial document you must understand: the Section 32 Vendor’s Statement.
At Lardners Solicitors, we often see clients who are eager to sign but haven't fully scrutinised the legal details of the property. Here is why getting legal advice on the Section 32 is vital before you commit.
What is a Section 32? In Victoria, a seller must provide a Section 32 statement to a prospective buyer before a contract of sale is signed. Its purpose is to disclose information about the property that isn't readily visible during an inspection. It tells the story of the property's legal history.
What are the hidden risks? While the house might look perfect on the surface, the Section 32 can reveal issues that might turn your dream home into a financial burden. Common things we look for include:
- Easements and Covenants: Are there pipes running under the backyard that prevent you from building that future swimming pool? Are there restrictions on the colour you can paint the fence?
- Zoning Information: Is the property in a residential zone, or is it mixed-use? This affects what you can and cannot do with the land.
- Outgoings and Debts: Are there outstanding council rates or owners corporation fees attached to the title?
- Building Permits: If the previous owner renovated, did they get the required permits? If not, you could be liable for fixing their illegal works.
The Danger of "Standard" Contracts Many buyers assume that real estate contracts are standard forms. While the templates are standard, the special conditions added to them are not. These conditions can sometimes shift responsibility for certain costs or risks from the seller to the buyer.
How We Can Help Buying a property is likely the biggest financial transaction of your life. Having a solicitor review the Contract of Sale and Section 32 before you sign can save you thousands of dollars and immeasurable stress down the road.
Whether you are a first-home buyer or an experienced investor, our team ensures you know exactly what you are buying, with no nasty surprises waiting for you after settlement.
Are you looking to buy or sell property in the Mornington Peninsula area? Contact Lardners Solicitors today to ensure your conveyance goes smoothly.
