What Is A Section 32 Vendor Statement?
Referred to as a Vendor’s Statement, a Section 32 document is a compulsory disclosure of information that may impact the land’s value in a property transaction. It’s name is derived from the corresponding section in the Sale of Land Act 1962 (VIC).
According to Sale of Land Act Section 32(1), a vendor in a land sale contract must provide the purchaser with a signed statement containing the required details and documents, as specified in Division 2 of Part II of the Sale of Land Act, before the purchaser signs the contract.
During the property sale campaign, the Section 32 statement is typically made available to prospective buyers. This enables them to perform due diligence and make informed decisions regarding the potential purchase of the property.
This section outlines the necessary information about the property that needs to be included in the vendor statement. Included in the section are the various details of the property’s title, such as:
- mortgages
- covenants
- easements
- zoning
- expenses (e.g., taxes)
- disclosures about being in a bushfire-prone area.
- building permits issued
- owners corporation certificates & body corporate fees
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Sellers Need To Provide A Section 32 To Their Real Estate Agent
Prior to finalising the sale of a property, the buyer must be provided with a Section 32 Vendor Statement. The Vendor Statement is prepared by a conveyancer as it is an important legal document related to the contract of sale. A Real Estate agent will present the Section 32 Vendor Statement to potential buyers before you sell your property.
As a legally binding document, the Section 32 statement must be accurate and comprehensive. Inaccurate or incomplete information could allow a buyer to retract from a sale even after the sale is signed. Buyers can initiate legal proceedings if information that may have affected their decision was left out when they reviewed and signed the Section 32.
How Much Does A Section 32 Cost To Prepare?
At Orange Legal Group, we charge a fee of approximately $990 incl GST for our legal fees plus our expenses depending on the type of property being sold.
Typically, an established home or a vacant block will have expenses of $440. A unit, townhouse or apartment with shared property/driveway can start from expenses of $660. If there are multiple Owners Corporations, typically in newer apartment buildings, the expenses will be higher.
Expenses can include things like:
- Title Searches
- Plan Searches
- Zoning & Planning certificates
- Owners Corporation Certificates
- Council, Water and Tax Certificates
- Furthermore, they cover all of our administration & electronic storage fees.
The fees & expenses are generally not required to be paid until settlement. However, if you remove your property from the market or have not sold within 4 months of preparing the Section 32, then you can be asked to cover half the fees & expenses for any work done to date.
Buyers Need To Review The Section 32
A Section 32 review is important for anyone looking to buy a property. This gives key information about the property and protects the buyer’s rights.
Reviewing the Section 32 helps buyers understand the property better and decide if they should buy it. This can help them avoid legal problems, money loss, and surprises from not knowing enough about the property.
The Costs Of Reviewing A Section 32 For Buyers
At Orange Legal Group, we provide a FREE first review of the Section 32 statement, so buyers can get expert help without spending any money. This first review helps buyers learn about the legal and financial parts of the property, which allows them to make better decisions.
If a buyer needs more help or wants to review Section 32 statements for other properties, we offer these services for $220 per review. By using our knowledge and help, buyers can more easily handle the challenges of buying property and make sure they get the best results for their investment.
