What is a Vendor Statement (Section 32)?
As mentioned in our article regarding contract of sale, before you sign or make an offer, you need to have a look at what is contained in the vendor statement, also referred to as the "Section 32" which is, quite literally, a statement of matters affecting land being sold. Essentially, Victorian law states that a vendor selling a property must provide a vendor statement to any prospective purchaser before the purchaser signs the contract. This statement will contain potentially critical information concerning the property, that could affect a purchaser's decision as to whether the property is suitable for them. From the vendor's perspective, having a complete and accurate vendor's statement will help ensure the purchaser has been informed about all relevant aspects of the property, therefore lowering the likelihood of the buyer rescinding (pulling out of the contract without consequence).
Information contained in a vendor statement are but not limited to:
- Financial matters in respect of the land;
- Insurance details in respect of the land;
- Matters relating to land use;
- Notices made in respect of land;
- Building permits issued in respect of land;
- Information relating to any owners corporation;
- Growth areas infrastructure contribution details;
- Disclosure of non-connected services;
- Evidence of title; and
- any other information required for a section 32 statement contained in a certificate, notice, policy of insurance or other document.
Supply of false information, failure to supply information in the vendor statement, or failure to supply a statement at all may result in rescission.
Whether you are wanting to sell or buy a property, please contact us to ensure that the correct vendor statement is drafted and/or reviewed.
