A “Section 32 Statement” is also known as a Vendor’s Statement. Under Section 32 of the Sale of Land Act 1962 (“the Act”), a vendor is required to provide such a statement to the prospective purchaser prior to the Contract of Sale is signed. The Act requires that a Vendor Statement disclose a specific list of information so as to allow the purchaser to make an informed and reasonable decision regarding their purchase of the property.
What does a Vendor Statement contain?
Section 32 of the Sale of Land Act requires the following matters to be disclosed for the Purchasers attention:
A current title search including:
Particulars of any mortgage over the land which is not to be discharged before the purchaser becomes entitled to possession; and
Particulars of any charge over the land;
The amount of any rates, taxes, charges or other similar outgoings affecting the land for which the purchaser may become liable in consequence of the sale;
Matters relating to land use including a description of any easement, covenant or other similar restriction affecting the land including if the land is located in a designated bushfire-prone area, flood area or an area of Aboriginal Cultural Sensitivity;
Any notices that have been made with respect to the land;
Any building permits that have been issued within the last seven years;
Any information relating to any owners corporation that the land is affected by;
Water rights;
Relevant planning schemes;
Whether there is access to the property by road;
Details, including any necessary insurances, if the property has on it residential owner builder construction;
Details if the land is located within a Growth Area Infrastructure Contribution zone;
Details of leases, licences or other rights over the property;
Details in regard to any owners corporation affecting the property;
Any services that are not connected to the property; and
Evidence of the Vendor’s title to the land if the vendor is not registered as the owner.
If the Vendor supplies false information or fails to supply information that is required by the Act in the Vendor Statement, or if the Vendor does not supply a statement in compliance with Section 32 of the Act, this may result in the rescission of the contract. The Act provides that the Vendor must not knowingly or recklessly supply false information to the Purchaser or fail to supply the information required under Section 32 of the Act.
When is a Vendor Statement provided?
A (duly signed) Vendor Statement is to be provided by the Vendor (typically through the vendor’s agent) prior to the contract being signed. The selling agent will, typically, make the document available to prospective buyers before the sale or before an auction.
Vendor Statements exist to protect not only the rights of the Purchaser, but also the Vendor. The Statement allows Purchasers to clearly understand aspects of a property that may not necessarily be apparent during an inspection such as covenants, easements or any future developments for the land.
The Vendor Statement also protects the Vendor’s rights under the contract as, upon providing a properly prepared
Statement containing the true and correct information, the Purchaser will not have grounds to rescind the contract and recover their deposit after the ‘cooling-off’ period has been completed.
Our office can assist you to navigate through the conveyancing process and ensure that your interests are protected at all times. Contact us on 03 9450 9400 for a confidential discussion today.