What is a section 32 statement?

A Section 32 statement (or vendor’s statement) refers to the mandatory disclosure document outlined in the Sale of Land Act 1962 (Vic). It’s named after the Act’s specific section, which sets out the details the property vendor (or seller) must provide to potential buyers. Simply put, the Section 32 statement gives buyers the essential facts about the property before signing the contract of sale.

Why is the Section 32 Statement Important?

This document is designed to protect buyers by ensuring they’re fully informed about matters that could affect the property they’re looking to buy. It also helps vendors disclose any relevant details to maintain transparency. Failing to provide an accurate statement can have serious legal consequences for the seller, including the possibility of the sale being voided.

What Does a Section 32 Statement Include?

The statement includes a wide range of information to help buyers make informed decisions. Some of the key disclosures are:

• Mortgages or Charges: Details of any financial encumbrances on the property.
• Rates and Outgoings: Information on current rates, council fees, or other expenses.
• Restrictions: Any restrictions or easements on the property, such as rights of way.
• Planning Details: The relevant planning scheme particulars for the property.
• Building Permits: Any building permits issued within the past 7 years.
• Owners’ Corporation Details: If applicable, information about the property being part of an owners’ corporation.
• Utility Connections: Whether the property is connected to essential services like water, gas, and sewerage.

Each piece of information must be accurate and typically supported by evidence, like copies of titles or certificates.

The Importance of Accuracy

Vendors must ensure the details in their Section 32 statement are correct. Any inaccuracies can have serious consequences. A well-known example is the case of McHutchison v Asli [2017] VSC 258. In this instance, the Section 32 incorrectly stated the property’s sewerage was “connected” to the mains. However, it was actually connected to a septic tank. This misrepresentation led to the contract being rescinded (or cancelled), with the vendor not only refunding the deposit but also covering the buyer’s legal costs. This case underscores the importance of ensuring every detail in the Section 32 is accurate.

How We Can Help

Whether you’re selling your property or considering buying, navigating Section 32 statements can be time consuming and overwhelming. At All Victoria Conveyancing, we’re here to make the process seamless. If you’re selling, we’ll help prepare a clear, accurate Section 32 statement to protect your interests and ensure compliance with the law. For buyers, we offer expert advice to help you understand what’s disclosed, so you can make confident decisions. Our experienced team is here to guide you every step of the way. Reach out to us at info@vicconvey.com.au, and let’s simplify your property journey