What is a Section 32?

Buying and selling property involves not just a large amount of money but lots of legalities. It is vital to make sure you are aware of all the legal ins and outs in relation to your property transaction, because you may find yourself stuck with a legal loophole not in your favour. This is why you need an experienced real estate Lawyer to look at your section 32 – otherwise known as the vendors statement. At Fordes Conveyancing we have Lawyers with years of experience in both preparing and reviewing Section 32 documents.

signing section 32

The Section 32 is a legal document included with every real estate transaction. The seller is legally obliged to provide it to the any interested buying party. It generally indicates the potential buyer is serious about making an offer as they want to see the legalities of the contract. The document gets its name from being Section 32 of the Sale of Land Act. And under the Act the person selling must disclose all information affecting the land they are selling. If this is not provided before the Contract of Sale is signed, the buyer retains the right to pull out of the sale.

It is essential that the Section 32 is prepared by a Lawyer to make sure all the right information is included. Any mistakes means the buyer or seller imay be setting themselves up for deals falling through simply because of errors in the document.

What Do You Need to Check in a Vendors Statement?

Your Fordes Conveyancing Lawyer will check for all details that affect the buyer. Some main examples are;

Who is Selling?

Legally the vendor or vendors must list their name in the Section 32. But it can be that the person/s selling the property is not the owner of the property. This means checking that the person/s listed in the Section 32 is actually legally allowed to sell the property. So a Lawyer will check such legal documents like the Certificate of Title against any Power of Attorney or Grant of Probate. It could be a quite an investigation of legal documents. Another reason why using Fordes Conveyancing means a peace of mind that all legalities are checked, leaving you free to make an offer.

It is often the case that many Section 32’s are prepared by Conveyancers who are not qualified to do so. This means even if you check the Section 32 it may not even include legalities like if the vendor can even legally sell the land. It is strongly advised that buyers get legal advice and review of any Section 32/Vendors Statement if you are planning to make an offer. Fordes Conveyancing have contract/legal document reviews as a standard Conveyancing service.

Is Something Hidden in the Section 32?

Are you buying what you think you are? Is it the same as what you have been shown or promised? Has the real estate agent shown you, for instance an off the plan land and home package, but on investigation the land isn’t the same lot listed in the Section 32? Or what if you have even been given the wrong Section 32, meaning you will not even be alerted to any legal issues affecting your block of land. It can be confusing when lot numbers and subdivision plans are in the Section 32. Having an experienced Section 32 Lawyer means you can be assured that everything is above board and all issues brought to you attention before you make any purchase.

Issues to Note in a Section 32

  • Lot size and dimension
  • Council valuation (this is not a reflection of market value)
  • Fence boundary and fence notices
  • Carparks and carparks position in apartment sale
  • Separate Certificates of Title for carpark/s
  • Property zoning
  • Services connected to the land
  • Future plans for the land like roads and council plans
  • Building warranties
  • Unauthorized buildings or extensions
  • Building permits and timeframes
  • Mortgages/debts on the land
  • Covenants
  • Easements
  • Road access to the land

Who Prepares a Section 32?

The Vendors Statement/Section 32 is legally required to be provided to any parties requesting it for sale transactions. It must be provided before any contract is signed. Even if you have a copy of the Section 32 from when you purchased the property we strongly advise a new Section 32 is prepared. This ensures you have met all legal requirements and also won’t leave you open to a buyer pulling out of the contract citing a Section 32 error. As this can leave you open to fees or even criminal prosecution. Fordes Conveyancing makes sure you will not be left open to any of these expensive outcomes.

Documents Required to Draft a Section 32

Fordes Conveyancing makes it as easy if you need a Section 32. We simply require a few easy to provide documents to draft your Vendors Statement.

Standard Property Sale

If your property meets the following points then its a standard sale, meaning we only need copies of the latest bills for council and water rates.

  • Built over 7 years ago
  • Not a unit/apartment
  • No owners corporation
  • No owner/builder renovations within 7 years of sale date
  • No structural work over $12,000 in value within the last 7 years

Unit or Apartment

If your property does not share any common ground it is considered the same as a standard sale. But if as is often the case your apartment or unit does share common ground then the following documents are needed;

  • Latest water and council rates bills
  • Occupier Liability Insurance
  • Owners Corporation Certificate (if there is and Owners corp)

Properties Built Within the Last 7 Years

Owner Builder

  • Latest water and council rates bills
  • Building permit
  • Occupancy Permit/ Final Inspection Certificate
  • Owner builder warranty Insurance
  • Owner builder defects notice that is not more than 6 months old

Registered Builders

  • Most recent water and council rates bills
  • Building permit
  • Occupancy Permit/ Final Inspection Certificate
  • Home owners warranty insurance

Fordes Conveyancing can advise you on any issues or questions regarding Section 32 or as also know the Vendors Statement. Contact us for details on pricing and timeline for completing a Section 32.

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