Section 32 statement (also known as a vendor’s statement)
Before a property is sold, you are required to provide the buyer with a Section 32 statement. This is usually prepared by your legal practitioner or conveyancer.
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. It is also known as a vendor’s statement.
You sign the Section 32 statement, a legal document that 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.
Usually, the agent makes the document available to prospective buyers before the sale or auction.
A prospective buyer may have the statement checked by his or her own conveyancer or legal practitioner before purchase.
The Section 32 statement contains information about the property’s title, including:
- Statutory warnings to the purchaser
- Vendor’s details
- Title details
- Information regarding building permits issued in the past 7 years
- Particulars of owner-builder warranty insurance
- If the vendor is the owner-builder who completed building works there should be a written inspection report (which lists any defects) in the Section 32
- Particulars of any mortgages or “charges” over the land (i.e. debts charged against the land)
- Information regarding covenants, easements and any other restrictions on title (whether or not they appear on the title)
- Planning information, particularly where zoning restricts land use
- Information regarding outgoings payable by the owner of the property
- Disclosure of any notices or orders issued by the authorities, regarding fencing, road-widening, sewerage etc…
- If there is access to the property by road
- Information on services connected to the property
When must the Section 32 be provided?
Pre-contract disclosure
The Section 32 must be provided to a purchaser BEFORE the contract is signed.
Sometimes an agent will have the purchaser sign a contract first, and include a special condition in the contract stating that the sale is subject to the vendor providing the purchaser with a copy of the Section 32. In such circumstances the sale is fatally flawed, and the purchaser is entitled to cancel it.