Section 32 Statement
What is a Section 32 statement?
A Section 32 statement or vendor statement is a document that the seller of real estate gives to an intending buyer.
The name comes from Section 32 of Victoria's Sale of Land Act which requires a vendor to provide information to a purchaser before a contract of sale is signed.
The statement should include:
- Statutory warnings to the purchaser
- Vendor's details
- Title details
- Building permits issued in the past 7 years
- Particulars of owner-builder warranty insurance
- If you are the owner-builder who completed building works, a written inspection report listing any defects
- Particulars of any mortgages or “charges” (debts charged against the land)
- Covenants, easements and any other restrictions on title, whether or not they appear on the title
- Planning information, particularly where zoning restricts land use
- Outgoings payable by the owner of the property
- Disclosure of any notices or orders issued by the authorities, regarding fencing, road-widening, sewerage etc
- Whether there is access to the property by road
- Services connected to the property
- Declaration if the property is located in a bushfire-prone area
The seller is required to provide you with a Section 32 statement before the property is sold. It is a legal document and must be factually accurate and complete. If it contains incorrect or insufficient information, you may be able to withdraw from the sale or take legal action.
A Section 32 statement does not include any information about:
- the condition of buildings
- whether they comply with building regulations
- the accuracy of measurements on the title
It is your responsibility to get any information that does not legally have to be included in the Section 32 statement.
The Section 32 statement is a critical step towards ensuring you are actually buying the property you want.
If you fail to provide the information required by the Act before the contract is signed, it is likely the buyer will be able to cancel the contract.
Further information may be required - it depends on the property.
Do I need a Section 32 statement?
Any vendor accepting a written offer for the sale of a property is required to produce a Section 32 (Vendors) Statement – so if you are selling your property, you need one.
Avoid problems with your sale, by making sure your Section 32 complies with the law.