A contract of sale is a legal agreement that establishes the terms and conditions for the transfer of ownership of a property from the seller to the buyer. In Victoria, Australia, a contract of sale must include a Section 32 statement, which details important information about the property.
The Section 32 statement is a vital document that must be prepared by the vendor or their solicitor before the property is listed for sale. It must be provided to the buyer before the exchange of contracts takes place. Failure to provide a Section 32 statement can result in the contract being deemed invalid.
The purpose of the Section 32 statement is to provide the buyer with key information about the property so that they can make an informed decision about whether or not to proceed with the purchase. The Section 32 statement must include the following information:
1. Title details: The Section 32 statement must include details of the title, including the location, boundaries, and any easements or covenants that may affect the property.
2. Planning information: The statement must also include information about any planning restrictions or permits that apply to the property, including zoning, overlays, and covenants.
3. Services information: The statement must specify the location of all utility services, such as gas, electricity, water, and sewerage.
4. Building permits and defects: The Section 32 statement must disclose any building permits or approvals that have been obtained for the property, as well as any defects or problems with the property.
5. Other information: The Section 32 statement must also include any other information that may impact the buyer`s decision to purchase the property, such as notices issued by authorities or disputes with neighbours.
It is important to note that the Section 32 statement does not cover everything that a buyer needs to know about a property. Buyers are advised to conduct their own due diligence, including a building inspection and a review of any strata or body corporate records.
In conclusion, the Section 32 statement is a critical document that protects both the buyer and seller in a property transaction. As a seller or vendor, it is essential to ensure that the Section 32 statement is complete and accurate to ensure a smooth sale process. As a buyer, it is crucial to review the Section 32 statement carefully to ensure that you have all the information you need to make an informed decision about the property.