The whole process of buying or selling a property may be too overwhelming. So much information to take into consideration, lots of reading, what is a section 32 or Vendor Statement?
This article will look directly at how crucial it is to read the section 32 and to make sure you are going into a property purchase with all the information about the land. The section 32 or also called the Vendor’s Statement, is a document prepared by the vendor’s legal representative.
The seller/vendor must under the legislation provide the purchaser with a Vendor’s Statement which provides specific information to a purchaser about the land that is being bought, before the purchaser signs the contract of sale.
If this statement has not been given to the purchaser prior to the purchaser signing the contract, the purchaser may have the ability to pull out of the contract. Also, there are consequences for providing false or incorrect information in the Vendor’s Statement, where the purchaser may end the contract and it can cause lots of headache for both parties.
So, the Vendor’s Statement will contain the following:
Title details
Such as the title reference details (volume and folio) , landowners/vendors legal name, details of any mortgages registered on the land, any covenants or such restrictions registered, any statutory agreements. Any easements, regardless of whether they appear on the title, any owner’s corporation affecting the land
Planning information
Details of the planning zone such as zoning restrictions and overlays, if the land is affected by bushfire, if there is access by road to the property.
Services
What services are and are not connected to the property. Such as water, sewerage, electricity, telephone services.
Permits
Details of any permits obtained, particulars of any owner builder who completed the works, any inspection reports, occupancy permits, particulars of any owner-builder warranty insurance.
Notices
Disclosures about any notices or orders issued by the authorities. This could relate to fencing notices, road-widening, sewerage or rates not paid on time.
Subdivision works
The proposed plan of subdivision, updated plans of subdivision, engineering reports, endorsed plans, surveyors’ reports.
Owners Corporation
Information who the owner corporation is, details of the owners’ corporations managing agent, their insurance, charges and levy for the property, if anything is owing, any notices served, minutes of owner corporation meetings, rules of an owner’s corporation
Your legal representative will review the Vendor Statement and provide you legal advice about the information contained in the Vendor Statement. Your legal representative will identify if there is any missing information in the Vendor Statement and if further searches and requisitions are to be made about the land.
For example, if there is a covenant registered on the certificate of title, your legal representative will review in detail the covenant and explain to you what the restriction pertains to. This may be a reason you may not go ahead with the purchase of the property if the covenant deprives you of completing works on the land in accordance with your wishes.
Hence it is important for your legal representative to review the Vendor Statement and complete the due diligence before you sign the contract. Your legal representative will advise you if there is anything missing in the Vendor Statement, or the information provided is incorrect. This step is highly advisable for a purchaser to do before they sign the contract or make an offer to the vendor.
Ghothane Lawyers can assist you in this process. Please send us your purchase or sale enquiry to property@ghothane.com.au or call us on 1800 886 886 and we can review or prepare your section 32 or Vendor Statement. We will guide you on every step of the way.