In Victoria, a seller of a property has to include a disclosure statement known as a Section 32 or Vendors Statement to potential buyers. During the sales process, conveyancers for both the buyer and seller will need to deal with a Section 32 but in different ways. The sellers Conveyancer will prepare the Section 32 document, whilst the buyers Conveyancer will review the document and advise the buyer on its contents.
What is in a Section 32?
Within the Section 32, you will find some key documents like a Title search, a copy of the Plan of Subdivision, the rates notice, water statement, details of covenants (if any) and building approvals within the last 7 years.
Who provides the Section 32?
The sellers solicitor will prepare this document for all purchasers to view. As some of the certificates in the document can take a few weeks to receive, the document may not be ready to distribute until after the property has gone under offer. Rest assured that the Conveyancer will have adequate time to review and make comment on the contents of the Section 32 before you're locked in to the contract.
Why is a Section 32 important?
Buying a property is a big deal. A Section 32 allows buyers to be informed about the property that they are considering purchasing. The details on the Title and Plan of Subdivision is the major one in this instance. The Title & Plan will show if the seller has a mortgage on the property, the size of the land you are purchasing, if there's any restrictive covenants in place, easements affecting the land, and caveats lodged on the title to name a few. A Section 32 won't alert you to any termite/pest activity or building defects - that's why you should always get a pest and building inspection when buying.
Want more information?
If you are struggling to make sense of what is contained in the Contract of Sale & Section 32, don't be alarmed. At Lush Legal we deal with contracts from a wide range of law firms on a daily basis and can help you make an informed decision about your purchase.
If you're a seller looking to get everything lined up for a smooth sales process, then Lush Legal can get your sales contract sorted!
*Note that this does not constitute legal advice. Please contact us to discuss your individual circumstances
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