What is a Section 32 statement?
A Section 32 statement, also known as a vendor’s statement, is a legal document with details regarding any crucial details of the property the seller is must provide to interested buyers. The Section 32 statement is so called because the information it must contain is set out in Section 32 of the Sale of Land Act 1962.
Before a property is sold, you are required to provide the buyer with a Section 32. This is usually prepared by your legal practitioner or conveyancer.
The Section 32 is signed by you as the seller, and all information must be factually accurate and complete. If it contains incorrect or insufficient information, a buyer may be able to withdraw from the sale or take legal action.
Real estate agents make the document available to prospective buyers before the sale or auction. Additionally, a prospective buyer may have the statement checked by his or her own legal practitioner or conveyancer before purchase.
The Section 32 statement contains information about the property’s title, including:
- outgoings (for example, rates)
- declaration if located in a bushfire-prone area
- if the property is managed by an Owners Corporation
Selling in an Owners Corporation
Formally known as a Body Corporate, an Owners Corporation (OC) is a legal entity which manages the common property of a residential, commercial, retail, industrial or mixed-use property development.
You are likely to be a member of an owners corporation if you own a flat, apartment or unit. Your ‘Body Corporate’ became an Owners Corporation on 31 December 2007, when the Owners Corporations Act 2006 came into force. This law sets out the duties and powers of owners corporations.
If you intend to sell your property, you must include an OC certificate and accompanying documents in the Section 32 statement.
While it is free to check the owners corporation register, however the owners corporation usually charges a fee for physical copies of documents. For a list of the fee limits, visit the Consumer Affairs Victoria website.
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