What is a Section 32?

Section 32 of the Sale of Land Act 1962 (Vic) prescribes that a vendor must give a signed statement to the purchaser before the purchaser signs the contract.  The Vendor Statement must disclose the following matters:

1. How much it costs to own the property, i.e. rates, taxes, owners corporation fees or other similar outgoings.
2. If the vendor has done building work on a residence as an owner-builder, particulars of the required insurance if the total cost of the building work exceeds $16,000.
3. Description of any easement, covenant or similar restriction on land use.  Disclosure if the land is in a bushfire prone area.  Details of the planning scheme.
4. Details of any notice, order, declaration, report or recommendation of a public authority or government department or any approved proposal directly and currently affecting the land.
5. Particulars of any building permit issued in the last 7 years for building work on a residence.
6. If the property is affected by an Owners Corporation that is not inactive, then either a current Owners Corporation certificate must be provided, or the vendor must separately disclose the information that must be provided in such a certificate.
7. If applicable, Growth Area Infrastructure Contribution (GAIC) details must be disclosed.
8. If any of electricity, gas, water, sewerage or telephone is not connected, this must be disclosed.
9. A Register Search Statement showing the vendor’s right to sell, and a copy of the plan.

If a vendor fails to supply any or all of the information required or any of the information is false and the purchaser is in a worse position because of this, then the purchaser can end the Contract at any time before settlement.  In addition, criminal penalties may be imposed on a vendor who knowingly or recklessly does this.

If you are looking for a Melbourne-based conveyancer, you can contact Glenferrie Conveyancing at Northcote on 03 9815 2351 for more information.