Buying or selling property in Australia isn’t just about agreeing on a price and shaking hands. The Section 32 Statement and the Contract of Sale are two of the most crucial documents that can make or break the transaction before it is finalised.
You might miss important things that affect your rights, costs, or even your choice to go ahead if you don’t know about them.
What is a Section 32 Statement?
It is a requirement to have a Section 32 Statement, often called a Vendor’s Statement. Before signing the Contract of Sale, the buyer must get a disclosure document from the seller.
Think of it as a “property report” that outlines essential details a buyer should know before committing to the purchase.
It may include:
- Title information: proof of ownership and land boundaries
- Mortgages and financial charges: any obligations related to the property
- Zoning and planning details: what to do is possible and not possible with the property
- Easements and covenants: limits, shared access, or rights of way
- Council rates and other outgoings: what you’ll need to pay as the new owner
- Services connected: water, gas, electricity, sewerage
- Owners’ corporation details: if the property is part of a strata or shared complex
This statement is critical for buyers, it helps you make an informed decision before signing. For sellers, providing an accurate and complete Section 32 is not just good practice; it’s a regulation obligation.
What is the Contract of Sale?
Once everyone agrees on the terms, the Contract of Sale is signed. This is the official paper that says:
- The purchase price and deposit
- The settlement date
- Any special conditions (e.g., subject to finance or building inspection)
- The details of the buyer, seller, and property
Unlike Section 32, which is about disclosure, the Contract of Sale is about agreement. Once signed, both parties are committed to the transaction—so it’s crucial to be certain before you put pen to paper.
Why You Should Review Section 32 and Contract of Sale Before Signing
Whether you’re a buyer or seller, it’s essential to understand these documents fully. Here’s why:
For Buyers
- Spot hidden issues early: Later problems may arise from easements, planning limitations, or unpaid rates.
- Make informed decisions: You will be well aware of what you are getting into.
- Negotiate better: If the Section 32 reveals something unfavourable, you can use it to adjust your offer or request conditions.
For Sellers
- Avoid contract cancellations: A faulty Section 32 may allow the buyer to back out.
- Ensure a smooth settlement: Correct disclosure avoids disagreements.
- Build buyer confidence: A clear, complete statement reassures potential buyers.
Common Mistakes That Cause Problems
- For Buyers: Skimming over Section 32, not checking zoning restrictions, or failing to get a professional review.
- For Sellers: Not signing the Section 32 before delivering it to the buyer, supplying out-of-date rates or title information, or missing necessary information.
How a Conveyancer Helps Buyers and Sellers
A skilled conveyancer in Melbourne can:
- Make sure that the Section 32 Statement does not contain any errors.
- Check the Contract of Sale for conditions that could work against you
- Ensure all paperwork is correct and compliant
- Guide you through the settlement to make the process stress-free
Can You Sign Section 32 and Contracts Electronically?
Yes. In Victoria, both the section 32 and contract of sale can be signed electronically. This makes the process faster and more convenient—especially if you’re not in the same location as the other party. However, the Section 32 must be signed by the seller before the Contract of Sale is signed, or it may be deemed invalid.
Don’t risk costly mistakes when buying or selling property. Our expert team specialises in property conveyancing services, helping you understand every detail of your Section 32 Statement and Contract of Sale.
At Eagle Peak, we help both buyers and sellers make sure that their transactions go smoothly and without hassle. Call our team of experienced conveyancers in Melbourne immediately for a full evaluation of your documents and professional help at every stage of the procedure.
Conclusion
The Section 32 Statement and Contract of Sale are two of the most important documents in a real estate transaction. Before making a purchase, buyers should consider them as a vital source of information, and sellers should make sure they are right to protect the transaction. A competent conveyancer can assist both sides in going forward with confidence and clarity.
FAQs
Q1: Do I Need a Section 32 Statement to Sell Land Without a House?
Yes. In Victoria, a Section 32 Statement is necessary for any real estate transaction, whether it involves a home or vacant land.
Q2: Can I Prepare Section 32 Myself as a Seller?
You can, but mistakes are common and risky. It’s strongly recommended to have a conveyancer prepare it for accuracy.
Q3: Should Buyers Always Get the Contract of Sale Reviewed Before Signing?
Absolutely. A professional review ensures you fully understand the terms and can avoid unfavourable conditions.
