Provided by the seller of a property to the prospective buyer a Vendor’s Statement, commonly referred to as the Section 32 Statement, is a critical document that is a mandated requirement for all property transactions as per Australian property law.

While the specific requirements can vary by state, the fundamental purpose of this statement remains the same – to ensure that buyers are fully informed about important details of the property before signing a contract of sale. 

If you’re seeking to enter the property market, here’s an in-depth look at what the Vendor’s Statement entails and why it is essential. 

 

What Is A Section 32 Vendor’s Statement?

​​A Section 32 or Vendor’s Statement is a written statement detailing important disclosures and information regarding a property that a vendor must sign and give to a purchaser for review before a contract of sale is signed.

 

Purpose Of A Vendor’s Statement

The Vendor’s Statement is designed to disclose all relevant information about a property that could potentially affect the buyer’s decision-making process concerning its purchase.   

By providing a comprehensive overview of the property’s details, the statement ensures transparency and helps prevent any disputes that could occur due to undisclosed issues. 

Prepared by the vendor’s solicitor or conveyancer, it covers a wide range of aspects regarding the property including its legal, financial, and physical details.

Key Components Of A Vendor’s Statement

So what exactly should you be looking for in a Vendor’s Statement? Let’s take a closer look at what is typically covered: 

1. Title Details

The statement must include information about the property’s title. This includes:

• The certificate of title showing the registered owner and street address of the property
• Any easements, covenants or restrictions affecting the property
• Any mortgages, encumbrances or charges attached to the property

2. Zoning Information

Details about property zoning are provided to inform the buyer about the permitted uses of the land according to local government regulations. This is an essential inclusion for buyers who hope to develop or use the property for a specific purpose. 

3. Outgoings

Information on any outgoings associated with the property will also be outlined in the statement, including things such as:

• Rates and taxes (council, water, and sewerage rates)
• Any levies or charges

4. Building Permits and Approvals

Any building permits or approvals granted for the property, especially recent ones, must be disclosed – even if not utilised. This includes information on renovations, extensions, or other significant modifications to the original home.

5. Services Connected

The statement should make it clear which utility services are connected to the property, this may vary depending on property type and location, but may include one or several of the following:

• Electricity
• Gas
• Water
• Sewerage
• Telephone

6. Compliance With Building & Planning Legislation

Buyers should pay careful attention to any provided information regarding a property’s compliance with relevant building and planning laws. The vendor must disclose any known defects or disputes that have the potential to affect the property’s value or desirability.

7. Insurance Details

Where the property or any part of it was built within the last seven years, details concerning the responsible builder’s warranties and insurance should be included in the statement. 

8. Owners Corporation Information

If the property is strata title the statement must include details about the owner’s corporation, including fees, regulations, and any significant issues or planned works. Buyers are also recommended to request a full strata report or further details.  

9. Known Dangers

This refers to a declaration for any property located in a bushfire-prone area or where other known dangers or risks exist such as being located in a flood zone. 

 

What Is Excluded From A Vendor’s Statement? 

A vendor or their agent has a legal obligation to disclose all known material facts, as soon as a purchaser shows interest in purchasing a property. However, there are some things they are not required to provide or that may not be known to them for disclosure.

These include:

• A report on the condition of the buildings
• Whether they comply with building regulations (unless any notices or orders have been issued regarding breaches of these laws)
• The accuracy of the properties measurements as per the title document

To obtain the above information as a buyer, engagement of legal representation such as a solicitor or conveyancer and pest & building report is advised.  

 

How Does This Relate To House & Land Packages?

While certain disclosures will not apply in the case of a Vendor Statement for a house and land package, it remains equally as important as when buying an established home. 

Ensuring that you have been provided with vital details about your chosen plot of land, this statement can help you avoid complications such as:

• Zoning restrictions that may interfere with your building plans
• Confusion over connected services or which services are available
• Title issues such as disputes over ownership
• Buying in a high-risk zone for natural disasters and more. 

Just as with buying an existing home, detailing important legal, financial, and physical aspects of a vacant property, protects the interests of both buyers and sellers.

The Stop Renting Perth Difference

At Stop Renting Perth, we expertly guide you through the entire purchase process for our house and land packages. Providing access to highly qualified legal representation and other experts, we ensure you can buy and build on your dream plot of land with the utmost confidence. 

Upholding values of honesty and integrity, we guarantee a streamlined property buying experience free of any hidden issues, equipping you with all the necessary details so you can make the most informed decision. 

Understanding the many pitfalls and common barriers associated with achieving homeownership, we work to remove these for an enjoyable experience and one that can see you owning your own home sooner. Book your obligation-free consultation today to learn more or to get started on your journey to a brand new home.