Section 32 Vendors Statement
So you've found a trendy real estate agent and the photographer & stylist are booked. This is when you hear "you'll need to arrange a Section 32 through your Conveyancer". What is a Section 32? How long does it take? What do you need to do?
Just relax, and leave it to us!
What is it?
A Section 32 is the industry name for a disclosure document the tells purchasers relevant information that is required under Section 32 of the Sale of Land Act
While every property transaction the bare basics of what it contains are;
Rates payable each year to Council, Water, Land Tax, Owners Corporation and other authorities
Any insurance required to be taken out over the land
Land use and Zoning details
Details of any Notices or Orders on the property, such as road widening schemes and the like
Details of building works in the last seven years that required a building permit
Owners Corporation details
Utility services connected to the property
Evidence of your ownership
For Melbourne Conveyancing matters this information can in most cases be obtained over the phone
There is no way to form a valid Contract of Sale without this document. Although we can in most case for Melbourne properties prepare this straight away, complex matters or properties affected by an Owners Corporation can take weeks.
For this reason we always recommend sellers looking to sell properties get in contact with our office straight away. Life is too messy to be waiting on sale documents.
Why Victorian Property Settlement’s?
Selling a property can be a stressful time for all involved. From the time you sell to settlement there are many processes that need to be undertaken to be prepared for settlement.
As a vendor, you have a duty towards a prospective purchaser.
Although, caveator emptor (buyer beware) still applies, however, in a sale of a property this principle has been limited by regulation and by law.
This Statement is a disclosure statement and must be given to a purchaser before that purchaser can makes a binding offer.
There are consequences and penalties if a vendor gives false or not all of the required information and may also give the purchaser the right to withdraw from the contract at any time prior to settlement.
A carefully and properly prepared Vendors Statement is therefore crucial, as it not only assists in a profitable sale but may also:
minimise the risk of your purchaser withdrawing from the contract thus securing your sale
avoid additional costs, such as:
additional sales commission because the property needs to be resold
if you have relied on your sale to purchase another property, you may be in breach of your purchase contract and incur additional costs & penalties
By providing Victorian Property Settlements all the information requested we can ensures you meet your obligation towards a purchaser.
We provide you with an overview of tasks we complete once we have been instructed to act on a Vendor’s behalf:-
Obtain by telephone from the Vendor answers to a series of questions in relation to the property to enable the arrangement for the preparation of Section 32′s/Contracts of Sale.
Ordering Certificates including:- Land Information Certificate, Water/Encumbrance Certificate, Planning Certificate, Roads Certificate & Body Corporate Certificate (if applicable).
Arranging preparation of Section 32′s/Contracts of Sale.
Sending copies of Section 32/Contract of Sale in triplicate to Vendor’s Estate Agent.
Sending initial letter to Vendor enclosing Discharge Authority in readiness for sale.
Once the Contracts have come back signed by both the Vendor and Purchaser we write to the Vendors Mortgagee advising that the property has been sold, advising settlement date and requesting they prepare discharge documentation.
Answering Requisitions on Title & forwarding same to Vendor for confirmation & signature.
Preparing Statement of Goods and sending together with Transfer of Land for Vendors signature.
Sending answers to Requisitions to Purchaser’s Representative.
Requesting Agent in writing to release balance of deposit after the deduction of their commission only if a Section 27 Statement has been signed by the Purchaser and certain conditions are met.
Cross checking Statement of Adjustments and Settlement Statement which is provided by the Purchaser’s Representative.
Obtaining from Vendor confirmation that Adjustments are correct in that the rates are either paid or unpaid.
Booking settlement with Purchasers Representative & Lender.
Advising Purchasers Representative in writing of cheque details required for settlement and confirming settlement arrangements.
Telephoning the Water Authority to request a final reading.
Telephoning Client & Agent advising settlement has occurred.
Preparing Notice of Disposition and sending to Council & Water Authority.
Sending final letter to Vendor which will include a Statement of Monies Involved, enclosing copies of Statement of Adjustments & enclosing our account.