Sellers: what you need to know

Section 32 statement

This is also known as a vendor’s statement.

Before a property is sold, you are required to provide the buyer with a Section 32 statement. This is usually prepared by your legal practitioner or conveyancer.

The Section 32 statement is so called because the information it must contain is set out in section 32 of the Sale of Land Act 1962. It is also known as a vendor’s statement.

You sign the Section 32 statement, a legal document that must be factually accurate and complete. If it contains incorrect or insufficient information, a buyer may be able to withdraw from the sale or take legal action.

Usually, the agent makes the document available to prospective buyers before the sale or auction.

A prospective buyer may have the statement checked by his or her own legal practitioner or conveyancer before purchase.

The Section 32 statement contains information about the property’s title, including:

  • mortgages
  • covenants
  • easements
  • zoning
  • outgoings (for example, rates)
  • declaration if located in a bushfire-prone area.

Selling in an owners corporation

An owners corporation (formerly body corporate) manages the common property of a residential, commercial, retail, industrial or mixed-use property development.

You are likely to be a member of an owners corporation if you own a flat, apartment or unit. Your ‘body corporate’ became an owners corporation on 31 December 2007, when the Owners Corporations Act 2006 came into force. This law sets out the duties and powers of owners corporations.

If you intend to sell your property, you must include an owners corporation certificate and accompanying documents in the Section 32 statement.

While it is free to check the owners corporation register, however the owners corporation usually charges a fee for physical copies of documents. For a list of the fee limits, visit the Consumer Affairs Victoria website: Fees – owners corporations page.