A Section 32 statement (aka Vendor's Statement) is a document provided by a vendor when they decide it's time to sell their property. This document must be handed over to the intended purchaser of the property.
A Vendor's Statement is commonly referred to as a Section 32 because it's implemented by Section 32 of the Sale of Land Act. It is a requirement under this act that a person selling real property must disclose all information that affects the land they are selling.
All information regarding the state of the property should be included. Especially if the information in question may affect the decision of the potential purchaser following through with the transaction.
If you need more information about a Section 32 statement or want to get your conveyancing process kick started, contact us here.
A Section 32 statement includes essential information that may not be apparent upon an inspection of the property in question. This information may include the following:
It's a legal requirement of the person selling the property that they disclose all information that affects the condition of it. Any information that may affect the buyer's decision on this purchase (whether positive or negative) must be included. What is contained in the statement can vary depending on the type of property, its location and how old it is.
A Section 32 statement must be prepared by a property lawyer or a conveyancer. It should then be provided by, or on behalf of the vendor during the purchase of property. It is essential that a vendor has been given competent legal advice during the process of creating a Section 32. Legal advice should also be sought after by the purchaser as they are reviewing the Section 32 and signing a contract of sale.
After a Section 32 has been prepared, the vendor must sign it. A vendor's statement then serves as a legal document and proof that the seller has sought legal advice during the transaction of property ownership. During or after the property purchase, the buyer is not required to sign this document.
A Section 32 is provided to the purchaser before they have acquired the property. For this reason, it must be prepared by the vendor when they decide to sell the property.
For a private sale of property, there is a 3-day 'cooling-off' period that follows immediately after the purchaser has signed a contract of sale. During this period, the purchaser can change their mind and reject the terms of the deal. If a prospective buyer rejects the vendor's statement and walks from the deal, they can still retain their deposit that would have been spent on the purchase of the property.
For a property sold at auction, there is no 'cooling-off' period. The buyer must review the Section 32, then sign a contract of sale to confirm purchase of the property. It's within the best interests of the vendor that a Section 32 is prepared immediately after they've decided to put their property on the market. Early preparation can save valuable time and money down the track if details need to be updated closer to the date of sale.
A vendor's statement can protect your rights as a vendor selling property. It gives you the right to retain the purchaser's deposit. If a vendor's statement is not prepared correctly, they can cancel the purchase of the property and retain their deposit.
Even after auction, signing of the buying contract, and the 'cooling off' period ends, a purchaser can still walk away with their deposit, simply because a vendor's statement wasn't prepared correctly.
A vendor should also be aware of the legal ramifications involved with a defective Section 32. It's a criminal offence for a vendor to provide false information whether it's done deliberately or recklessly. A lawyer or conveyancer can always guide you through the creation of a vendor's statement to ensure its legally sound.
So if you're thinking about putting your property on the market, don't forget to seek legal advice. Preparing a Section 32 is one of the most crucial steps involved with selling a property.
A vendor's statement is a safety net that helps looks after your best interests during the process of buying and selling property. The statement also gives a purchaser more confidence in their decision to buy your property.
Our team at Conveyancing.com are here to help with the creation and review of your vendor's statement. We are the experts in all legal matters relating to the transfer of a real estate title from one person to another. Conveyancing is what we do, and we do it well. Some would even argue we are the best!
To learn more about our conveyancing services and how we can help you create a vendor's statement, get in touch with the team at Conveyancing.com today.