Whether you’re buying or selling a home, you’ll undoubtedly be involved in a long and arduous process full of legalities and countless steps. Of course, your solicitor and conveyancing lawyer will guide you throughout the whole procedure. However, you must still learn as much as you can about the necessary steps and documents before you can go through with the exchange of property ownership.
If you’ve begun researching real estate transactions or have discussed the conveyancing process with your solicitor, you may have already been introduced to the Section 32 statement. Although you may be aware of its importance, have you fully understood why it’s significant to the buying/selling process?
Even though your conveyancing solicitor will handle most of the legal aspects and complicated parts of the transaction, you are still responsible for understanding the Section 32 Vendor Statement.
What is Section 32?
Section 32 refers to the document the seller of the property provides to a potential buyer. This legal document contains all of the information you need to know about the property, which helps the buyer determine whether they should go through with the purchase or not.
The details of the Section 32 Vendor Statement must include the following:
- The anime of the vendor;
- The arrears on rates are if any;
- Services included in the property such as electricity, gas, or water;
- Any building permits issues for the past seven years;
- Leases or licences that a prospective buyer should know about;
- Easements; and
- Government notices.
The term “Section 32” comes from a part of the Sale of Land Act 1962, which prescribes information that must be disclosed to prospective purchasers of land. The disclosures are stated in sections 32A to 32I of the Act, hence why the Vendor Statement is commonly called Section 32.
A qualified conveyancing lawyer or licensed conveyancer is responsible for preparing or reviewing the Section 32 Vendor Statement before signing the contract of sale because of its legal nature. Although you own the property or the one who plans to buy it, only a lawyer or conveyancer can handle the document because of its legal nature.
Why Is Section 32 Important?
The Section 32 Vendor Statement must be provided to any potential buyer as it is required by law. If you fail to provide it, the prospective purchaser may walk away or invalidate the sale. As a seller, you’re responsible for ensuring that the Section 32 Vendor Statement is complete and accurate and meets the law requirements.
Besides being required by law, the Section 32 Vendor Statement is an important document to provide, as it contains crucial information that could affect a potential buyer’s choice. When it comes to making a big purchase, such as buying a house, it’s critical to learn about all there is to know about a property so that the individual can make a well-informed decision.
Conclusion
A house is one of, if not the most, significant investments a person will make. Given the weight of this purchase, it’s crucial to make sure that you are choosing what’s best for you. As a prospective purchaser, you must check the contract with a Section 32 Vendor Statement and consult a conveyancing lawyer to review it.
If you’re looking for a skilled conveyancing lawyer, our highly experienced Senior Conveyancing Managers Nicole Ellis and Nicole Cameron can look after all your conveyancing needs. We at Bickell and Mackenzie strive to minimise the stress for our clients through our professionalism, accessibility and communication. Request a legal consultation today.
