A Section 32 Statement, or Vendor Statement, is a legal document originating from Section 32 of the Sale of Land Act, which requires vendors to disclose certain information to prospective purchasers before a contract of sale is signed. Failure to provide the correct information in a Section 32 Statement may entitle a purchaser to terminate a contract of sale and could also result in penalties for the vendor.
Information required in a Section 32 Statement includes:
- Proof of a vendor’s right to sell
- Title and plan details
- Details of building permits issued in the past 7 years including special requirements for owner/builder work
- Covenants, easements and other restrictions on title
- Planning information including applicable zoning and overlays
- Services connected to the property
- Outgoings payable by the owner and details of any statutory charges on the property
- Any notices or orders issued by government departments or public authorities directly and currently affecting the property
- Details of any Owners Corporation affecting the property
- Whether the property can be accessed by road
- Whether the property is in a “designated bushfire-prone area” for the purposes of the building regulations
A Section 32 Statement is a very important legal document, so choose a solicitor with the necessary knowledge and experience to ensure all of the required information is included.