Welcome to our series of articles addressing answers to frequently asked questions by home buyers, in particular first home buyers.
You may have heard people mention a property’s “section 32”, otherwise known as the “vendor statement”, or formally, “Vendors’ statement pursuant to section 32 of the sale of land act”.
WHAT IS A SECTION 32?
The Section 32 is a document provided by the seller of real estate (vendor) to an intending purchaser. Its name comes from Section 32 of the Sale of Land Act, which requires a vendor to provide certain information about the property to a purchaser BEFORE a contract of sale is signed.
A Section 32 is usually prepared by a conveyancer or solicitor. If you are a buyer, the completed Section 32 will be provided to you by the seller.
The reason it is called a Section 32 statement is because the information it must contain is set out in section 32 of the Sale of Land Act 1962.
The Section 32 statement contains information about the property’s title, including:
- Statutory warnings to the purchaser
- Vendor’s details
- Title details
- Information regarding building permits issued in the past 7 years
- Particulars of owner-builder warranty insurance
- If the vendor is the owner-builder who completed building works there should be a written inspection report (which lists any defects) in the Section 32
- Particulars of any mortgages or “charges” over the land (i.e. debts charged against the land)
- Information regarding covenants, easements and any other restrictions on title (whether or not they appear on the title)
- Planning information, particularly where zoning restricts land use
- Information regarding outgoings payable by the owner of the property
- Disclosure of any notices or orders issued by the authorities, regarding fencing, road-widening, sewerage etc…
- If there is access to the property by road
- Information on services connected to the property
If you have a question you’d like answered, feel free to email us at sales@wilsonswarrnambool.com.au