Section 32
Vendor Statement

If you're selling a property (or even if you're buying), you've probably heard the term "Section 32" or "Vendor Statement" (usually written as "s32") from the real estate agent.

A s32 statement is a document signed by the vendor (seller) and provided to the purchaser (buyer) which contains relevant information about the property. It will be prepared by your lawyer, signed by you and then, if you are using a real estate agent, provided to the real estate agent for them to give to prospective purchasers.

A s32 must contain the following information:

• details of any mortgage over the property which is not being discharged prior to settlement

• details of any charge over the land imposed by or under an Act to secure an amount due under that Act

• the amount of any rates, taxes, charges or other similar outgoings affecting the land, including any for which the purchaser may become liable in consequence of the sale and of which the vendor might reasonably be expected to have knowledge (this includes council rates, water rates, owners corporation fees, land tax, etc.)

• details of insurance, if the contract does not provide for the risk of the land to remain with the vendor until settlement (this is uncommon)

• descriptions of easements, covenants or restrictions affecting the land

• whether the land is in a bushfire prone area

• if there is access to the property by road

• planning / zoning information

• particulars of any notices, orders, declarations, etc. affecting the property

• for agricultural land, details regarding any notice, report, order, etc. about livestock disease or contamination by agricultural chemicals

• building permits issued in the past seven (7) years

• information about the owners corporation, if applicable

• details of the Growth Area Infrastructure Contribution (only applicable in the following council areas: Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham)

• disclosure of any services (water, sewerage, electricity, gas and telephone) that are not connected

• evidence of title and a copy of a plan of the land

Additional information is required for terms contracts, which are relatively uncommon and therefore not outlined here.

While not strictly required to be included in the s32, it is a convenient place to include any material facts disclosures you are required to make.

An incomplete s32 is known as "defective", and can give the purchaser the right to withdraw from the contract at any time up until the moment of settlement, without penalty (meaning you would have to refund their deposit to them in full). Providing a defective s32 can also leave you liable for penalties of up to 60 penalty units (over $10,000).