What is a section 32?
What is a section 32?
Section 32 vendor statements were introduced in 1983 to enhance consumer protection by requiring the vendor in the sale of real estate in Victoria to give certain disclosures to a purchaser before entering into a contract for the sale of the property.
The statement provides important information about the property, such as the title details, any mortgages or caveats on the property, any notices or orders from government or statutory bodies, zoning or planning restrictions, and any other relevant information that could affect the purchaser’s decision to buy the property.
The purpose of the Section 32 Statement is to ensure that the purchaser is fully informed about the property and any associated issues before they enter into a contract of sale. The vendor is legally required to provide this statement to the purchaser, and failure to do so can result in the purchaser having the right to rescind the contract of sale.
The Section 32 Statement is usually prepared by the vendor’s conveyancer or solicitor. It is important that the statement is accurate and complete, as any incorrect or misleading information provided in the statement could lead to legal disputes and liabilities for the vendor. However, the statement is not a warranty or guarantee of the property’s condition or fitness for purpose. It is simply a disclosure of relevant information about the property. Therefore, it is important for the purchaser to conduct their own due diligence, such as obtaining building and pest inspections, before finalizing the sale.
The name of the document comes from the section legislation which provides for what information and documentation the vendor must give to a purchaser, namely, section 32 of the Sale of Land Act 1962.
Given the importance of the document and its legal nature, it is recommended that an experienced conveyancer prepare or review the section 32 to ensure all of the correct information is included.
More information about section 32 statements can be found on the Consumer Affairs Victoria Website here: https://www.consumer.vic.gov.au/housing/buying-and-selling-property/selling-property/conveyancing-and-contracts-for-sellers
