Selling & seller FAQ's

VENDORS SECTION 32 STATEMENT

What is a Vendors Section 32 Statement?

A Vendors Section 32 Statement is a statement made by a vendor (seller) for the sale of real estate.

The 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.

What is disclosed in the Vendors Section 32 Statement?

Below we 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.

Vendor’s details. i.e full name of the registered owner
Property address.
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
Planning information. i.ezoning which restricts land use.
Advice as to whether the property can be accessed by the road.
Information regarding building permits issued in the past 7 years.
A Building Inspection Report on any works carried out in the past 7years 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 i.e Units
Particulars of any mortgages or “charges” over the land (i.e. debts charged against the land).
Title details.

One of 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.

Simply contact us to arrange preparation of a Section 32 Statement

SECTION 27 - EARLY RELEASE OF DEPOSIT

Section 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 settlement.

Vendors please 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 deposit release.

Early release of deposit may be possible should the following requirements be met:

Where the contract is not subject to any condition enuring for the benefit of the purchaser;
Where the purchaser has accepted title or is deemed to have accepted title;
The vendor provides the purchaser notice in writing i.e - Section 27 Statement;
The vendor provides the purchaser with written notification from their lender confirming details under their mortgage (if applicable);
Thepurchaser is satisfied with the Section 27 Statement and the details provided;
Thepurchaser gives written notice to the vendor consenting to release.

In simple 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.

The 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 release.

Should 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

Settlement is the final stage, the event that both the vendor and purchaser have eagerly awaited.

Upon 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 etc)

Once the documents and cheques have been exchanged and all parties to the transaction are satisfied, the matter is declared "settled:.

Settlement, date, 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).

On the agreed date, venue and time each representative attends settlement collecting documents and handing over cheques that are required and the matter is settled.