Jun 21, 2022
Why The Section 32 Statement Is Important In Any Real Estate Transaction?
The Section 32 statement is an important part of any real estate transaction, as it provides crucial information about the property that’s being sold. This includes details such as previous ownership history, any liens or easements associated with the property, and other pertinent details that can impact its value or usability.
When reviewing a Section 32 statement for a property, it’s important to carefully examine all of the information included. This will help you identify any potential risks or issues with the property that could impact its value or usability. For example, if there is a lien on the property for unpaid taxes, this would limit your ability to get financing for the purchase.
Additionally, when buying a property, it’s essential to have a good understanding of the local market conditions. This can help you determine what an appropriate offer is, and whether or not the property is likely to be a good investment. To gain this insight, you may choose to work with a real estate agent who has experience in your area and has access to up-to-date market data.
In summary, the Section 32 statement is an important document that provides key information about a property being sold. It’s essential to review this document carefully to identify any potential risks or issues that could impact the value or usability of the property. Additionally, it’s helpful to have a good understanding of your local market conditions when making a purchase, which can be achieved by working with a real estate agent who has expertise in your area.
The section 32 vendor statement may include any of the following documents
- The Title Document
This shows their legal right to own and live in that property. It also shows who owns the property, who the current person is renting it, and who sold or loaned it at any time in the past.
- Mortgages or other charges on the property
These will be reflected in the title document. You can see the order of priority for these debts and liabilities, as they will be listed in order on the document. This is important to know if you are considering taking out a loan or mortgage on the property.
- Covenants, easements or restrictions on the land
If there are any covenants, easements or restrictions on the land, they will be noted in the title document. Covenants are agreements that the owner of the land must adhere to, such as building guidelines. Easements are rights of way that are available to the public or certain parties. Restrictions may limit how the land can be used or may limit your ability to sell the land in the future. It is important to be aware of any covenants, easements or restrictions that are on your property so that you can understand how they might impact your use of the land and any potential resale value.
- Owner-builder warranty insurance
Owner-builder warranty insurance is also an important consideration if you’re buying a property from an owner-builder. This insurance can protect you from any defects or problems that may arise with the property after settlement.
- Zoning Certificate
The zoning certificate will display the buyer what the property may be used for: i.e. residential versus commercial. This is important information for a buyer to know, as it will affect how they can use the property.
- Debts that are outstanding
Outstanding debts on the property may include rates. This is something that a buyer will need to take into account when considering purchasing a property.
- Owners Corporation Certificate
If you’re buying an apartment or unit, make sure to ask for the Owners Corporation Certificate. This document will give you important information about the financial health of the body corporate, as well as any fees and charges that are associated with maintaining the complex. The strata report will also provide details about any restrictions on the property, such as whether pets are allowed, and any legal matters that could be affecting the sale.
What do I need to sign a section 32 vendor statement?
The vendor statement is a legal document that outlines the key information about the property being sold. This includes important details such as the purchase price, any encumbrances on the property, and any special conditions of sale.
The vendor statement must be signed by the vendor before it can be served on any interested party, such as a potential buyer. Some real estate agents may also require that the buyer sign the vendor statement as proof that it was received.
Since the vendor statement is a legal document, it is recommended that it be prepared by a lawyer or conveyancer in Victoria. This will ensure that all the relevant information is included and that it is presented in a clear and concise manner.
Why is it crucial for the seller to submit a section 32 vendor statement?
The section 32 vendor statement is an important part of the sale process for a seller, as it helps to confirm that all taxes and debts associated with the property have been paid in full. This can minimize any potential financial risk related to the sale, and provide reassurance to buyers that there are no outstanding obligations tied to the property.
In some cases, the section 32 vendor statement may also outline any special conditions associated with the sale, such as a requirement for the buyer to obtain planning permission before making any alterations to the property. Ultimately, the section 32 vendor statement helps to create a smooth and transparent transaction for both parties involved.
The section 32 vendor statement is an important part of the sale process for both buyers and sellers, as it helps to confirm that all taxes and debts associated with the property have been paid in full. In addition to providing peace of mind to the buyer, this can also reduce any potential financial risk related to the sale.
When must the vendor statement be given under Section 32?
The section 32 vendor statement must be provided to the buyer at least three days before the sale contract is signed. This gives the buyer time to read and understand the statement, and seek independent advice if they wish.
If the buyer waives their right to receive the vendor statement, they must do so in writing.
The vendor statement must be updated if there are any changes to the information contained in it, up to and including the day of settlement.
If the vendor statement is not provided, or is not updated to reflect changes, the buyer may be entitled to rescind (cancel) the contract.
In the section 32 vendor statement, what must be stated?
The law requires that a section 32 vendor statement must contain specific information about the property being sold, as well as any relevant information about the seller. This includes:
- The full name and contact details of the seller
- A description of the property, including its address, lot number, dimensions and zoning
- Any outstanding taxes or fees owed by the seller
- Information about any other liens on the property, as well as details of who they’re held by
- The seller’s legal right to sell the property
- A signed declaration from the seller stating that they have complied with all disclosure requirements outlined in the law
- A list of any agreements or contracts that relate to the property, including building permits, covenants and conditions, easements, lease agreements, and so on
- Information about any zoning changes or development restrictions that may affect the property.
The seller is also expected to provide a copy of any important documents relating to the transaction as part of the section 32 vendor statement. This can include building permits, covenants and easements, zoning changes, and any other relevant information that might affect the value or use of the property.
Overall, the section 32 vendor statement acts as an important tool for protecting both buyers and sellers during real estate transactions. It ensures that all relevant information about the property has been disclosed to potential buyers, so they can make informed decisions about whether or not to proceed with the purchase. As such, it is essential that this statement contains all of the information required by law in order to ensure a fair transaction for everyone involved.