A Section 32 Statement, commonly referred to as a Vendor Statement, is a document required by section 32 of the Sale of Land Act 1962 (Vic) to be prepared and given to a potential purchaser when you are looking at selling your property.
The Vendor Statement essentially discloses the required information/documentation about your property so that a potential purchase can make an educated decision on whether they make an offer and for how much. The required information includes how much the property costs in an annual period (like council rates, etc), any permits or notices applicable to the property, and so on. Before a purchaser signs a Contract to buy your property, you as the Vendor must provide them with a current and accurate Vendor Statement.
So, what is involved in a Vendor Statement and where do you start?
Whilst an agent may be your first point of contact in your steps to listing the property it is a Conveyancer or Property Lawyer who does conveyancing, that must prepare and provide you with the Vendor Statement before the property is listed.
As a guide, the type of information you should have prepared for your Conveyancer or Property Lawyer includes:
- recent copies of your council and water rates notices, the total amount for any Owners Corporation fees, land tax, or other annual fees relative to the property;
- information on any easements, covenants or other restrictions that you are aware of;
- copies of notices from council, water authorities or other government bodies that would be of particular interest to a purchaser (such has a notice to fence your pool or a consent to build over an easement);
- any Planning Permits, Building Permits, Occupancy Permits or Final Inspection Certificates, Defects Report and Builders Warranty Insurance (where applicable) that have been obtained in the last 7 years;
- any documentation or notices relevant to a pool or spa (if any), including a Building Permit for the fence; and
- whether your property is connected to mains water, gas, electricity, sewerage or telephone.
Other information that may be relevant is whether any Agricultural or Water Licences are being sold with the land, whether a residential or commercial Lease is in place, or perhaps whether there have been any illegal building works that don’t have any permits. Of course, this list may vary depending on the type of property or the history of the property you are selling, and, sometimes you may not know how or where to find this information.
Each property is unique and will require one of our Conveyancers or Property Lawyers to provide a list of information that is specific to you and your property. If you are unable to obtain the above information prior to meeting with your Conveyancer or Property Lawyer, don’t fret! We can certainly assist you with obtaining missing documents and advising you on your options if certain documents were never received.
If you’re stuck on whether your recent building works required a permit or perhaps looking to rely on an exemption and would like to know more, we have a new Blog Post coming soon to help answer your questions! In the meantime, head to the VBA Website and read through their requirements to get you started.
Once the Vendor Statement has been put together and a copy has been supplied to you and your agent, it is important to check that the information contained in the Vendor Statement is true and accurate as at the date you provide the Vendor Statement to any potential purchaser. Any inaccuracies in the information could enable the purchaser to withdraw from the sale at any time, including the day of settlement. This is particularly risky if you expect to be relying on the proceeds of the sale for another purchase.
How much notice do we need to prepare the Vendor Statement for you? Well, this depends on a couple of factors such as whether an Owners Corporation effects the land, whether you have all the water licence and/or building permit information handy, and whether or not the property will be sold at auction. Generally speaking, once we have received all the relevant information, we can turn around a Vendor Statement for you by the end of the next business day. Sometimes it’s a lot quicker than that, too!
If you’re thinking about selling or have already engaged an agent to list your property, visit our website and submit an enquiry. Or you can email us directly at firstname.lastname@example.org and we can get started on drafting a Section 32 Vendor Statement, tailored to you!