Also known as a ‘Vendor’s Statement’, a Section 32 Statement is a disclosure document that outlines crucial information about a property that is for sale. It is given by the Vendor to a potential purchaser.
Important information to be covered in a Section 32 Statement includes:
• Title, Plan and Ownership Information – This will outline the property address, the volume and folio number or lot and plan number of the land and advise who is the current owner of the property.
• Any restrictions placed over the property – There may be restrictions over the land by way of covenants, easements, Section 173 agreements, planning permits or design guidelines. This is important information for a purchaser to know prior to signing a contract as some of these restrictions may affect how they wish to use the land.
• Connection of services and utilities to the land – This will outline what services are connected to the land eg: Gas, Electricity, Telephone, Water and Sewerage
• Financial matters – This will advise financial details payable on the land from Council rates, water rates, owners corporation fees and other taxes which may affect the land.
• Any permits or owner built work affecting the land – A Section 32 Statement must outline any permits obtained by the Vendor in the last 7 years prior to selling and any owner builder work completed by the vendor at the property within 6.5 years of selling.
• Any leases or notices affecting the land – This will outline any leases which affect the land and any notices placed on the land from relevant authorities.
• Planning report – This will outline zoning of the property, including advising if the land is in a bushfire zone, as well as stating any overlays which may affect the property.
When selling a property, it is important to engage a professional and have them prepare a Section 32 Statement correctly. Any Section 32 Statement which is incomplete or defective entitles a purchaser to rescind the contract of sale and walk away at any time.
Please contact a member of the Casa Conveyancing team today if you have any questions in relation to reviewing or preparing a Section 32 Statement on your behalf.
