What is a Section 32 Vendor Statement

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What is a section 32 vendor statement?

• A section 32 vendor statement refers to the legal
  document given by the seller to the potential
  buyer. Essentially, this document contains all
  the information about the property that is
  required by law that the seller must provide to
  the buyer. It must include all the information
  that may affect the state of the property,
  especially where such information may affect the
  decision of the buyer.
• The name of the document comes from the
  legislation that governs the vendor statement,
  section 32 of the Sale of Land Act of Victoria.
  The statement should not be confused with the
  contract of sale, which is a separate document.
• Given its legal nature, it is recommended that a
  qualified lawyer or licensed conveyancer prepare
  (for the seller) and review (for the buyer) the
  section 32 vendor statement prior to signing the
  Contract of Sale.

https//www.thinkconeyancing.com.au/section-32
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Why is a section 32 vendor statement important?

• The section 32 vendor statement provides the
  buyer with important information about the state
  of the property. Legislation dictates that the
  seller must bring certain matters to the
  attention of the buyer about the property. So
  being a legal requirement, there are severe
  consequences if a section 32 vendor statement is
  not provided or is found to be incomplete or
  defective.

What does a section 32 vendor statement look like?

• Although the name may sound like one document,
  the section 32 vendor statement is actually made
  up of a number of different documents about the
  property. Essentially, the vendor statement is a
  full disclosure of all matters relating to the
  property that the buyer must be made aware of.

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Who needs to sign a section 32 vendor statement?

• As the name suggests, the vendor statement is
  prepared by the vendor, that is, the seller. And
  it is the seller who will then need to sign the
  document before serving it on any person
  interested in buying the property.
• Some real estate agents may also require that the
  buyer sign the section 32 vendor statement as
  proof that the statement was in fact provided by
  the agent.
• Due to the legal nature of the section 32 vendor
  statement, it is recommended that the seller get
  the document prepared by a lawyer or conveyancer.

https//www.thinkconeyancing.com.au/section-32
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SELLER AND THE SECTION 32 VENDOR STATEMENT
Why is the section 32 vendor statement important
for the seller?

• The section 32 vendor statement is REQUIRED BY
  LAW and failure to provide it may give the buyer
  the option to walk away or invalidate the sale
  entirely. The statement is a disclosure document
  that contains a range of attachments that provide
  information to the buyer about the condition of
  the property. Such information includes title
  search, statutory warnings, mortgages as well as
  other charges on the property and zoning
  requirements.

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What happens is the section 32 vendor statement
is found to be defective?

• The bottom line is, where a section 32 vendor
  statement is found to be defective, the buyer may
  be entitled to end the contract without any
  financial penalty. Whether the defect is enough
  to constitute ending of the contract is still a
  question that needs to be carefully considered.
  If you are the seller and the buyer is of the
  view that the section 32 vendor statement is
  defective and wishes to rescind the contract, you
  may want to seek legal advice as there are
  exceptions to the situation.
• Where you as the seller have given incorrect
  information intentionally, this can actually
  constitute a criminal offence. So in providing
  the section 32 vendor statement, you need to
  ensure that the information you provide is also
  accurate and not deliberately misleading.

https//www.thinkconeyancing.com.au/section-32
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What are the steps to draft a section 32 vendor
statement?

• Due to the risk of a defective section 32 vendor
  statement, it is advisable to get a professional
  to prepare it for you. A lawyer or conveyancer
  will be familiar with the requirements of a
  section 32 vendor statement and will have their
  respective checklists to ensure compliance with
  the legislation.
• The time it takes to prepare a section 32 will
  depend on the particular property and the various
  reports that pertain to its condition and state.

https//www.thinkconeyancing.com.au/section-32
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How do you read a section 32 vendor statement as
a seller?

• As the seller, you need to ensure that the
  documents you attach as part of the section 32
  vendor statement are accurate and the buyer will
  be able to access them. There are many factors
  that will not be apparent during an inspection
  alone so you should ensure your section 32 vendor
  statement provides clarity and covers aspects
  that the buyer must know about under the law. For
  instance, services that are connected to the
  land, zoning particulars, government proposals
  and so on.
• The section 32 vendor statement is also
  beneficial for the seller as it acts as a
  safeguard once the cooling off period ends so the
  seller is able to retain the deposit where the
  buyer decides to not go through with the sale.

https//www.thinkconeyancing.com.au/section-32
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Do I need a lawyer to prepare the section 32
vendor statement?

• Due to the critical nature of the section 32
  vendor statement and its legal consequences, it
  is advisable to request a lawyer to prepare it.
  Where a section 32 vendor statement is found to
  be defective, there can be serious consequences
  to the sale and the buyer may in fact be able to
  walk away. For these reasons, it is best to
  engage a professional from the outset.
• Lawyers and conveyancers prepare section 32
  vendor statements day in and day out so are well
  positioned to draft an accurate document without
  taking too much time. Having a lawyer or
  conveyancer draft the document will also allow
  you to ensure you understand your obligations as
  the seller and feel satisfied that all relevant
  requirements have been met.

Do I still need a section 32 vendor statement in
a private sale?

• Regardless of whether you use a real estate agent
  or not to handle the sale, you are required by
  law to provide a section 32 vendor statement. So
  it is best to engage a lawyer from the outset and
  start the process. Any buyer worth his or her
  salt will ask for the section 32 vendor
  statement. You want to be prepared and ensure a
  good sale is not hindered by lack of organisation

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BUYER AND THE SECTION 32 VENDOR STATEMENT
Why is the section 32 vendor statement important
for the seller?

• Upon inspecting a property, there are many
  aspects that are not immediately or obviously
  apparent. As such, the law requires the seller to
  DISCLOSE certain matters to the buyer so that
  they can make an informed decision about the
  purchase of the property.
• The section 32 vendor statement is required by
  section 32 of the Sale of Land Act and must
  disclose all particulars that may affect the
  property in question.

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What about private sales?

• Any property that is being sold in the state of
  Victoria must be accompanied by a section 32
  vendor statement. Even if no real estate agent is
  involved, the seller must still provide a section
  32 vendor statement. If one is not provided, ask
  for it. And if the request is declined, it is
  better you not proceed with the sale, no matter
  how much you may love the property.

https//www.thinkconeyancing.com.au/section-32