What is a section 32 Vendors' Statement?
The section 32, also known as the Vendor's Statement, is a legally required document that reveals information that could affect the value of the land being sold in a real estate transaction.
It also provides some valuable information about the restrictions which may affect for purchaser’s future use of the property.
The term 'Section 32' comes from the section of the Sale of Land Act of 1962 that makes it mandatory for a vendor to provide the potential buyer with the Vendor’s statement.
Why section 32 Vendor Statement is important?
In general, the purchaser has the right to terminate a contract if the seller fails to provide the information needed by the Act before the contract is signed. There are, of course, exceptions to this rule, and buyers should not expect that any "technicality" will allow them to terminate the contract.
Under s 12(d) of the Act, a vendor or their agent who knowingly conceals a material fact in order to induce a purchase to buy property is guilty of an offence and carry 120 penalty units or up to 12 months’ imprisonment.
Any contract signed without providing a copy of S32 Statement the contract is voidable at the option of the purchaser. [s32)5) (b)].
Who prepares the section 32 Statement?
Because of the importance of Section 32 to the success of a real estate transaction, it should be completed by a solicitor to ensure that all of the necessary information is included.
Despite the fact that it is not stated in the Sale of Land Act legislation, the fact that it is a legal document means that a vendor must seek competent legal advice from a qualified solicitor in order to fully comprehend the responsibilities associated with the preparation of a Section 32.
What should be included in the section 32 Vendor Statement?
Subsections 32A–32I of the Sale of Land Act specify the information that must be included as part of the Section 32 statement. The information that must be conveyed in a Section 32 and provided to the prospective purchasers under those subsections may include, but is not limited to, the following:
Easement
An easement offers a person or entity the right to access real land owned by someone else for a defined and limited purpose.
Covenant
A covenant is a written agreement that binds the owner to certain obligations in connection to the land.
1. Owners’ corporation certificate:
The Owners Corporation Certificate, formerly known as the body corporate, is a document that informs potential buyers about Owners Corporation matter.
2. Mortgages or other chargers on the property:
The title document reflects mortgages and charges, which reveal the debts and responsibilities owed on the property.
3. Title document:
A certificate of title or the title document is the document that records and proves the legal ownership of the property.
4. Vendors details:
This includes the seller's phone number, address, and other information.
5. Covenants, easements or restrictions on the land:
The title certificate also contains restrictions on the land, such as covenants and easements.
