What is a Vendor’s Statement?
When selling a property, you have to provide a Vendor’s Statement together with the contract of sale. It contains details of the matters affecting the land being sold. It’s also called a Section 32 statement mainly because Section 32 of the Sale of Land Act 1962 (the Act) sets out the information that must be included in the statement.
Generally, these are:
Disclose any mortgage and/or outgoings like rates, taxes, and charges for which the buyer may become liable due to the property sale.
These are details of any policy of insurance maintained by the seller in respect of any damage to or destruction of the land. It also covers any required insurance under the Act that applies to a residence on the land which was constructed within 6 years prior.
These are details of any easement, covenant or other similar restrictions on the land. Examples are if the land is in a bushfire-prone area, if there’s no access to the property by road, and if a planning scheme applies to the land.
These are particulars of any notice, order, declaration, report or recommendation of a public authority or government department. These include any notice issued in relation to a livestock disease or chemical contamination of land used for agricultural purposes.
Include the particulars of any building permit issued under the Building Act 1993 for any residence built on the land in the past 7 years.
For a land affected by an owners corporation, attach a copy of the current owners corporation certificate as well as a copy of the documents specified in the Owners Corporation Act 2006. If the owners corporation is inactive, then declare that it is inactive in the statement.
Under GAIC, developers have to make a one-off infrastructure contribution to Melbourne’s expanding municipalities. The contribution is usually triggered by events such as transfer of title and subdivision. You have to disclose in the Section 32 statement if the land you’re selling is located within the GAIC contribution areas zoned for urban use and development.
Disclose any disconnection or lack of connection to utilities such as electricity, gas, water, sewerage, and telephone services.
Attach a copy of the title document to provide that you have the legal interest and authority to sell the property.
A Vendor’s Statement must be complete and factually accurate; otherwise, the buyer could withdraw from the sale or pursue legal action against you.
Take advantage of our highly personalised services and cost-effective conveyancing fees. For assistance in preparing and reviewing a Section 32 or Vendor’s Statement, get in touch with our conveyancers at +61 3 9967 2659 or email us at info@tnsconveyancing.com.au.
