The Vendor's Statement: Section 32 Statements
What is it?
A person selling a property must provide the buyer with a Vendor's Statement, also commonly referred to as a Section 32 Statement, before the buyer signs a Contract of Sale for the property.
The Vendor's Statement provides information about the property being purchased. It acts to put the purchaser on notice as to any issues that may pass with the property once sold. The Vendor's Statement is prepared by the vendor (the person selling the property), and must be signed by the Vendor and must also be included in the contract.
What information does the Statement include?
The information required to be contained in the Vendor's Statement includes the zoning of the property, Council rates, any restrictions on the use of the property, and whether building permits have been issued for the property. Additionally, information about services such as electricity, gas, building permits, water, sewerage and telephone connected to the property are also required to be included in the Vendor's Statement.
The purchaser must also be placed on notice through the Vendor's Statement that their proposed use of the property may not be permitted due to planning and or building controls. A commercial agricultural production activity warning is also mandatory in the Vendor's Statement.
However, depending on the type of property being sold, the Vendor's Statement will require additional information included to comply with the various statutory obligations.
Consequences of Failing to Comply
Given the variety of factual circumstances under which real property may be sold (for example a block on a proposed subdivision, a residential property or a residential property sold by way of a terms contract), it is imperative to seek qualified advice so as to comply with the Vendor's Statement requirement before attempting to sign a Contract of Sale for the property.
In the event that incorrect or insufficient information is given by the Vendor in the statement, the buyer may be able to avoid the Contract or sue the seller directly.
How Duffy & Simon Can Help
Duffy & Simon are experienced in dealing with all conveyancing matters, from residential property sales through to large subdivisions.
We act on behalf of both vendors and purchasers, and can advise on what is required to be included in a Vendor's Statement, as well as whether the Vendor's Statement provided allows any grounds under which the Contract of Sale can be avoided or the Vender pursued.
Contracting out
Any attempt by the vendor to contract out of the disclosure obligations is void.