Selling a property can be an intricate process, often filled with legal complexities and requirements that sellers must navigate. At LP Advisory, we understand the importance of ensuring that our clients are well-informed and prepared every step of the way. That’s why we’ve sat down with Marianna from Provey Conveyancing and got her to answer your top/most recurring questions about one of the crucial aspects of selling a property: understanding Section 32. The following information was provided by Marianna based on the reoccurring questions we receive as advocates.
“The Section 32 is a detailed document about your property that the law requires you to provide to potential buyers. Your conveyancer plays a crucial role here; they help you gather all the necessary information and ensure everything is in order.”
What is a Section 32 Statement?
“A Section 32 statement, also known as a Vendor’s Statement, is named after a specific section of the Sale of Land Act that requires sellers to disclose important information about the property. This document is crucial for buyers to understand what they’re getting into and must be given by the seller before a contract is signed.”
Who Puts it Together?
“Your conveyancer or lawyer will usually prepare the Section 32 for you. They’ll gather all the necessary details about your property, which can vary a lot in length and complexity based on what you’re selling—for instance, selling an apartment might require more details because of additional information about the common property, insurance and its management.”
What’s Included in a Section 32?
“The Section 32 covers a lot and can include:
- Financial information on certain outgoings including local council, water, owners corporation, etc.;
- Particulars of any building permits issued in the last seven years (if there is a dwelling on the land);
- Information on easements or covenants;
- Notices from government bodies regarding the property;
- Details about services connected to the property;
- Planning zones and overlays which affect how you can use or develop the land;
- If the property is prone to bushfires;
- Defects warranty insurance (also known as domestic building insurance) if you were an owner-builder;
- If the land forms part of an unregistered plan (off-the-plan properties).”
Why Does Accuracy Matter?
“Getting everything right in the Section 32 is crucial. Any mistakes can make the document ‘defective’, and the buyer might be able to back out of the deal. Most conveyancershave a comprehensive client questionnaire which should be answered in full. The questions might feel daunting, but it’s crucial to answer them as accurately as you can. If anything is unclear, do not hesitate to ask for clarification.”
What Should Our Key Takeaway Be?
“The questions involved in having a Section 32 prepared may feel overwhelming. There are no shortcuts however and questions must be answered thoroughly. Be cautious of conveyancers who do not use detailed questionnaires or take comprehensive instructions. Engaging a skilled conveyancer or lawyer is crucial to ensure that a buyer cannot easily terminate the contract. A well-prepared Section 32 gives the seller peace of mind that the contract is binding, while the buyer can feel confident that they have received full and accurate disclosures.”
Empowering sellers with knowledge is at the heart of what we do at LP Advisory. As experienced vendor advocates, we understand the complexities of the property market and the importance of a smooth and successful sale. By partnering with trusted professionals like Marianna from Provey Conveyancing, we ensure that our clients receive comprehensive support and guidance throughout the selling process. From understanding Section 32 to navigating legal requirements, LP Advisory is committed to delivering exceptional service and achieving the best possible outcomes for our clients. Trust us to be your advocate and partner in your property selling journey. If you’re also looking to buy your next home, explore our home buyers agent services.
Author: Marianna Mavrias of Provey Conveyancing & Alana Prideaux of LP Advisory
