Buying or Selling Property in Victoria? Why Your Section 32 Matters

A Section 32 Vendor Statement is a legal document that a seller must provide to a prospective purchaser before a contract of sale can be signed. It is named after section 32 of the Sale of Land Act 1962 (Vic).

The Vendor Statement provides important information about the property that may not be obvious simply from inspecting the home. Depending on the property, it can include information about:

• mortgages and other financial charges affecting the property;
• easements and other restrictions on title;
• covenants and other title restrictions;
• planning information and zoning;
• notices or orders affecting the property;
• rates and other outgoings;
• owners corporation information, where applicable;
• other matters that the seller is legally required to disclose;
• building works / renovations in the last 7 years.

The purpose of the Section 32 is to give a purchaser important information before they commit to the purchase.

Preparing a Section 32 is not simply a matter of filling out a form. The information needs to be accurate, complete and supported by the appropriate searches and documents.

An incorrect or incomplete Vendor Statement can have serious consequences for a seller. In some circumstances, a purchaser may have rights to end a contract or take other legal action if the required disclosure has not been properly made.

For example, a precarious situation may arise where a property is affected by an easement or other title restriction that is not properly disclosed in the Vendor Statement. A purchaser signs the contract believing there are no such restrictions. The issue is subsequently discovered, and the purchaser argues that the Vendor Statement was defective.

What appeared to be a straightforward property sale can then become a legal dispute, potentially causing delays, additional legal costs and significant stress for the seller.

Getting the Section 32 Vendor Statement right before the property goes to market can help avoid these problems.

If you are buying property, don't assume that the Section 32 is simply a formality.

Before signing a contract, a purchaser should carefully consider what the Vendor Statement reveals about the property and whether anything requires further investigation.

In particular, purchasers should consider:

Is the title clear?

Check for mortgages, caveats, easements, covenants and other interests affecting the property.

Are there restrictions on how the property can be used?

Planning controls, restrictive covenants and other restrictions may affect what you can do with the property in the future.

Are there owners corporation obligations?

For apartments, units and other properties within an owners corporation, it is important to understand the owners corporation arrangements, fees, rules and any known issues.

Are there notices or orders affecting the property?

A Vendor Statement may disclose notices, orders or other matters that could have financial or practical consequences for a purchaser.

Does the property have any unusual features?

If the property includes extensions, renovations, outbuildings or other improvements, purchasers should consider whether further enquiries are appropriate regarding planning, permits or other issues.

Most importantly, if you are unsure or have queries don't rush to sign the contract simply because the property looks perfect and the Section 32 has been provided. 

A Section 32 is an important legal document, and having it reviewed by a qualified conveyancer before you sign can identify issues that may otherwise be overlooked.

At Lardner's Solicitors, our experienced conveyancing team assists clients with both buying and selling property throughout Victoria.

We understand that property transactions can be exciting, but they can also involve significant financial and legal risks. Our experienced conveyancing team is supported by lawyers within the firm who are available to assist when a matter involves a more complex legal issue saving you time and money. 

This provides our clients with an additional level of legal support that is not always available through a traditional conveyancing-only service.

If you are selling, our team can prepare your Section 32 Vendor Statement and Contract of Sale to ensure the necessary searches and information are obtained and considered.

If you are buying, we can review the Section 32 and contract before you commit to the purchase, helping you understand the legal issues that may affect the property and your transaction.

We prepare Section 32 Vendor Statements and Contract of Sale for a fixed fee and can assist with all of your conveyancing needs.

Before you sign a contract or put your property on the market, speak to our experienced conveyancing team.

Call our office on 9787 4511 to discuss your circumstances or make an appointment with our team or book your appointment here