- VENDORS SECTION 32
is a Vendors Section 32 Statement?
Section 32 Statement is a statement made by a vendor (seller) for
the sale of real estate.
Vendors Section 32 Statement is a requirement by a vendor when
selling and is to be provided to a prospective purchaser prior to
the signing of a Contract. Without a Section 32 Statement it
may invalidate a sale.
is disclosed in the Vendors Section 32 Statement?
list examples of what a Section 32 Statement usually comprises of
however, the requirements can differ depending on the type of
property and it’s particular circumstances therefore, further
information may be required.
details. i.e full name of the registered owner
- Outgoings relating to
the property payable by the owner. i.e
municipality rates, Owner Corporation fees ect..
- Information concerning
the supply of services to the property.
information. i.ezoning which restricts land use.
as to whether the property can be accessed by the road.
- Information regarding
building permits issued in the past 7 years.
Building Inspection Report on any works carried out in the past 7
years as an Owner Builder.
- Particulars of
owner-builder warranty insurance / builder insurance.
- Disclosure of any
notices or orders issued by any authority i.e fencing,
road-widening, sewerage etc..
- Information regarding
any easement, covenant and other restrictions affecting the
property registered or unregistered.
- A Owners
Corporation Certificate, should the property have common grounds
- Particulars of any
mortgages or “charges” over the land (i.e. debts charged against
the first steps you will need to take if selling your property is
arranging for the preparation of a Section 32 Statements. Our
office is more than happy to assist you with the preparation of a
Section 32 Statement.
arrange preparation of a Section 32 Statement
- SECTION 27 -
EARLY RELEASE OF DEPOSIT -
27 of the Sale of Land Act says that the deposit paid by a
purchaser on the purchase of real estate can in certain
circumstances be released to the vendor prior to
note; Under Section 27 there is never any guarantee that the
deposit funds will be released prior to settlement and therefore we
strongly suggest the vendor does not become reliant upon an early
release of deposit may be possible should the following
requirements be met:
the contract is not subject to any condition enuring for the
benefit of the purchaser;
the purchaser has accepted title or is deemed to have accepted
vendor provides the purchaser notice in writing i.e - Section 27
vendor provides the purchaser with written notification from their
lender confirming details under their mortgage (if
purchaser is satisfied with the Section 27 Statement and the
purchaser gives written notice to the vendor consenting to
terms this means the vendor has to serve a Section 27 Statement on
the purchaser or their representative which discloses details of
any mortgage or caveat affecting the property.
purchaser then has to be satisfied that the amount owing does not
exceed 80% of the sale price, all conditions of the Contract must
be fulfilled and the purchaser has signed and returned the Section
27 Statement confirming they are agreeable to the early
the vendor be successful in obtaining receipt of a duly signed
Section 27 Statement from the purchaser, the vendor may then
request the selling agents to release the deposit funds as the
vendor may direct less the estate agents commission and any other
expense that the agent is entitled to.
Settlement is the final
stage, the event that both the vendor and purchaser have eagerly
settlement the purchaser pays the balance of monies due under the
Contract to the vendors as the vendors may direct, upon receipt of
security documents - i.e; Title, transfer
documents and cheques have been exchanged and all parties to the
transaction are satisfied, the matter is declared
venue and time
Settlement date is the
date usually specified in the Contract. All parties to the
transaction (purchasers representative, vendors representative,
both parties mortgagees) agree on a venue and a time is set for
settlement (usually to the vendor or the vendors mortgagee who
holds the Certificate of Title).
agreed date, venue and time each representative attends settlement
collecting documents and handing over cheques that are required and
the matter is settled.
settled, the vendor, purchaser and selling agent are contacted and
advised settlement has occurred. The selling agent can than release
the keys to the purchaser.
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