In the course of any property transaction, whether you’re the buyer or the seller, you’ll come across a document known as a Section 32. This document, also known as a Vendor’s Statement, is provided by the seller and must be given to the property buyer. It contains information about the land being sold and the property title.
A Section 32, or Vendor’s Statement, is a document that discloses any information that could affect the land being sold in a property transaction. The document ultimately serves to disclose to the buyer information that could impact their decision to purchase the property.
The Section 32 contains information about the land and the title of the property being sold. It provides the buyer with information that wouldn’t be readily obtainable by inspecting the property. Below are seven pieces of information usually disclosed in a Section 32 statement:
1. Zoning
A Section 32 must contain information about how the land is zoned and how the local council will allow it to be used. This is vital information for buyers, as it will define whether the land is available for residential, commercial or mixed-use purposes.
2. Outgoings
This provides information on the rates payable on the land. Sellers are not required to give an itemised breakdown of any outgoings, but must provide an overall figure.
3. Title
A Section 32 must include a Certificate of Title, which will give a detailed description of the property being sold and verify that the vendor has the right to sell the land.
4. Land use
The document must also disclose any easements, covenants or restrictions on land use. An easement is a right for the use of the land by a third party. For example, the council may have an easement for the use of a drainage or sewerage pipe. A covenant is a restriction on how the land may be used. For example, a covenant may state that the owner promises not to construct more than one dwelling on the land. The Section 32 also must disclose if the land has road access.
5. Bushfire danger
The Section 32 must disclose whether the land is in a bushfire-prone area.
6. Building permits
The Section 32 must disclose the particulars of any building permits issued within the last seven years.
7. Proposals
A Section 32 must make buyers aware of any approved public authority or government proposals that could affect the land.
Who needs a Section 32?
The Section 32 is provided by the vendor to the purchaser in a property transaction. The vendor must provide a Section 32 in order for the transaction to reach settlement.
For sellers, it’s important to ensure that the Section 32 provided to the buyer is a full and accurate representation of everything affecting the land on which the property sits. Failure to disclose any of the information required in a Section 32 could see your property transaction fall apart. A buyer could take legal action against a vendor if the Section 32 is inaccurate or incomplete.
For buyers, it’s important to pay close attention to all the details disclosed in the Section 32. This will ensure that the property you’re buying meets your needs and that you won’t be in for any unwelcome surprises regarding the land on which your property sits.
Answered
What’s not in a Section 32?
Almost as important as the information that must be included in a Section 32 is the information that’s not included.
A Section 32 does not have to disclose anything about the condition of the building or buildings on the land. While it does have to disclose any services that aren’t connected, such as water, gas or electricity, it doesn’t have to provide information about whether those services are available. If you’re a buyer, you’ll want to do your own research into the areas not covered by a Section 32.
How do I obtain a Section 32?
A Section 32 is usually prepared by a conveyancer or solicitor. If you are a buyer, the completed Section 32 will be provided to you by the seller. If you are the seller, a conveyancer or solicitor can complete the form for you. While there are DIY conveyancing kits available that include blank Section 32 documents, it’s often wise to have the document prepared by a professional.
Section 32 documents are extremely detailed and can be time-consuming to complete. Even a solicitor or conveyancer may take up to two weeks to complete a Section 32. This is because the searches required to find information about the land being sold can often take time. If you’re selling your house, you’ll want to enlist the aid of a conveyancer or solicitor to prepare the Section 32 well ahead of the time you expect to settle the transaction.
Frequently asked questions about Section 32 Statements
Because of the searches involved in obtaining information about the land for sale, a Section 32 can take two weeks or more to complete.
DIY conveyancing kits will include Section 32 documents and instructions on how to complete them. It’s certainly possible to go through the process of completing a Section 32 yourself, but it can be time-consuming and confusing.
Pay attention to the title to ensure that it accurately reflects the property you’re buying and make sure you note any restrictions on the use of the land. This includes the zoning and any easements, covenants or other restrictions on the land use. You’ll also want to pay attention to the outgoings to give yourself an idea of the rates you’ll be paying.
While you can and should read through the Section 32 yourself, it helps to have a good conveyancer or solicitor who can help interpret the document for you and help explain all the details.
The vendor must provide the Section 32 prior to the Contract of Sale being signed.
The vendor is the only person required to sign the Section 32 and they can do so either personally or through their legal representative. Purchasers are not required to sign the Section 32, but may be asked to do so by their estate agent in order to prove that the document was provided before the Contract of Sale was signed.
Adam Smith was the home loans editor at Finder. Prior to joining Finder he was the editor at Australian Broker where he had been writing about home loans since 2010.
A joint home loan could be your ticket to home ownership with a spouse, friend, relative or partner. Learn more about joint home loans and compare offers today.
What is a cooling off period when buying a house? Learn how they work in each state or territory and how to cancel a property contract without any financial penalties.
Obtaining Section 32 Statement thru a licensed conveyancer is possible. You may inquire with your local consumer services or affairs for the public register of conveyancers online, as they vary in each state.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
A Section 32 must contain information about how the land is zoned and how the local council will allow it to be used. This is vital information for buyers, as it will define whether the land is available for residential, commercial or mixed-use purposes.
Hi. Is it correct that in Victoria a sec 32 is only valid for 3months?
Hi Christine, thanks for your inquiry.
Can we ask where you heard this from? We couldn’t find anything about Section 32 only being valid for 3 months from our research.
Thanks,
Jonathan
Hey Adam!
How goes?
Can I get Section online? I could only find one place and they wanted $50 for a copy.
Cheers!
Mark
Hi Mark!
Thanks for the comment.
Obtaining Section 32 Statement thru a licensed conveyancer is possible. You may inquire with your local consumer services or affairs for the public register of conveyancers online, as they vary in each state.
Alternatively, you may also check our list of DIY conveyancing kits.
Hope this helps.
Cheers,
Jonathan