Thinking of selling or buying property? If you’ve found your dream home, you’ll want to secure it pretty fast. But as soon as you start the formal negotiations, you’ll probably be handed a document called a Section 32.

But what, exactly, is it?

The Section 32 is also known as the Vendor’s Statement. Which means that it is a legally binding document prepared by or for, the vendor of the property, and handed out to every interested party before the contract of sale is signed.

If you’re buying a property, you’ll want to take a look at the Section 32 as soon as possible. And if you’re selling? Well, you’re legally required to prepare such a document.

Not sure if you need a conveyancer or a property lawyer to draw up a Section 32? Read our article to find out. 

The name comes from the, you guessed it, Section 32, of the Sale of Land Act. In it, the vendor is legally to pass on information about the property to all interested buyers before the sale of the property. The vendor’s lawyer will prepare the Section 32, and give it to the real estate agent to hand out to potential buyers.

Basically, if you are not given the opportunity to see the Section 32 prior to the sale, the contract can be cancelled.

These are some of the basic items that are covered by the Section 32:

• Statutory warnings to the purchaser;

• Vendor’s details;

• Title details;

• Information regarding building permits issued in the past 7 years;

• Particulars of owner-builder warranty insurance;

• If the vendor is the owner-builder who completed building works there should be a written inspection report (which lists any defects) in the Section 32;

• Particulars of any mortgages or "charges" over the land (i.e. debts charged against the land);

• Information regarding covenants, easements and any other restrictions on title (whether or not they appear on the title);

• Planning information, particularly where zoning restricts land use;

• Information regarding outgoings payable by the owner of the property;

• Disclosure of any notices or orders issued by the authorities, regarding fencing, road-widening, sewerage etc…;

• If there is access to the property by road;

• Information on services connected to the property.

It’s a lot of important information, so it’s crucial to have a good look at it before you sign anything. It’s also important to understand what it says.

While it’s a criminal offence to provide misleading or incorrect information in the Section 32, it’s up to you the buyer to understand the fine print.  That’s why it’s a good idea to get legal advice before proceeding with the sale.  

Lawyers are also good at uncovering what information might be missing from the Section 32. So if the vendor has failed to mention a freeway will be constructed at the end of the street, or  a heritage overlay prevents you from changing the colour of the front door, your lawyer will be able to find out about it for you.

If you’re buying a property you’ll need an expert to guide you through the process. Look for a conveyancer here, or a lawyer that specialises in property, here.