Are you ready to sell your property? You Need a Section 32 Vendors Statement prepared

section 32 home for sale victoria

WE’RE NOT JUST CONVEYANCERS, WE’RE AN ESTABLISHED CONVEYANCING LAW PRACTICE. SETTLE YOUR REAL ESTATE WITH MR CONVEYANCER FOR STRESS FREE BUYING & SELLING.

Before you can sell your property, as a seller you must give a potential purchaser a Section 32 Vendors Disclosure Statement. This statement is an important document that must be given to any potential purchaser disclosing all information that affects the land being sold; information that may affect the decision of a potential purchaser signing a contract with you.

If the Section 32 Vendors Disclosure Statement is inaccurate a buyer may be able to withdraw from the sale and take legal action, and in some cases take legal action against the seller after the property settlement has been completed.

A good quality Section 32 Vendors Disclosure Statement can take a few days to complete, so it is a good idea to contact us as soon as you have nominated your selling agent to give us time to prepare the documents for you.

What are the next steps?

Confirm you are going to instruct Mr Conveyancer to undertake your legal conveyancing for your sale.

Confirm our acceptance of our quote by clicking on ACCEPT quote on our covering letter, and also going to www.mrconveyancer.com.au/forms and clicking on SALE QUESTIONAIRE, entering the password provided, and filling out all of your details to get started.

Alternatively, contact us by telephone or arrange a DISCOVERY CALL by clicking on here in order that we can take your information in person. Alternatively, booking a time with our NIDDRIE OFFICE by calling our office on 1800 549 836.

Our Quote
Our services are included in our quote and later confirmed in our Costs Agreement & Disclosure Statement once you elect to proceed with our office. These services are adequate to carry out your matter. All fees are paid at settlement electronically at settlement via the PEXA platform.

Any service (e.g. legal action) required to complete your matter that is over and above the scope of works outlined in our Costs Agreement & Disclosure Statement will mean that your conveyance becomes a non-standard conveyance, and you will therefore incur an additional fee.

Disbursements
Disbursements include title search, land information certificate, water information certificate, land tax statement only.

GST
Your contract may provide for you to pay GST. If you have any queries regarding any potential GST issues in the future, or capital gains tax queries, you should ask your Accountant, because as lawyers we cannot provide you with specialist taxation advice.

Foreign Resident Capital Gains Withholding Certificate
A resident vendor of a property that is sold for $750,000 or more must obtain a clearance certificate from the Australian Taxation Office as soon as they have entered into a sale contract. You can even apply for the clearance certificate when you are considering listing their property for sale. We will assist you with the application.

Our App
If you have an iPhone or Android device you can download our App from the App Store to give you instant updates on your matter. It allows you to view and track your progress, chat with us and download your documents securely and rate your experience with us directly from the app.

Also be aware of the following when selling your property.

Deposit Release
You may seek a release of purchasers deposit prior to settlement. Your agent will then release the deposit to you, minus their costs. We will keep you informed of any objections to this request made by the purchaser.

Late Settlement
If the purchaser does not settle on time then you have the right to demand payment of penalty interest on the balance and maybe also additional losses. You will then also have the option to issue a Recission Notice and then to retain the deposit and re-sell the property, suing the purchaser for any deficiency in price.

Other contract conditions
The purchaser cannot rely upon any information given to them outside the contract (unless they can prove that someone, for example the agent, made certain promises that they relied upon). Unless the purchaser can prove fraud or misleading conduct, they are buying the property ‘as is’, and there will generally be no comeback against you.

Vendors Statement
The law requires that prior to entering into the contract the purchasers were handed a properly signed Section 32 Vendors Statement.

If you become aware of any inaccuracy in the vendor’s statement you should contact us immediately.

Insurance
It is your responsibility to hand the property over at settlement in the same condition as at the date of the contract, fair wear and tear excepted, and the purchaser may be able to withdraw from the contract should the property be substantially destroyed prior to settlement. If this happens, you would need to advise our office immediately. We recommend that you continue to insure the property right up until settlement.

Settlement
The settlement date will be stated within the contract.

Please note that, if at any time, a change in the settlement date is agreed upon between you and the purchaser then this constitutes the cancellation of the original date in favour of the new date. In other words, you can’t change your mind and go back to the original date if you find that the new date does not suit you.

In the event that you and the purchasers wish to bring the settlement date forward and you are paying out a loan or the purchasers are obtaining finance, or you are purchasing another property simultaneously, we must first determine that any or all lenders will be able to meet an early settlement date before confirming the amended date with the purchaser.

Final inspection
The purchaser has the right to carry out a final inspection of the property during the week prior to settlement. At that stage, they will check that all chattels set out in the contract remain, and that no fixtures have been removed. If you are in any doubt about whether an item is a fixture which should remain, or an unspecified chattel which may be removed by yourself, please discuss this with our office. Briefly, the rule of thumb for the difference between a chattel (which may be removed by you if not listed in the contract) and a fixture (which must remain), is that a chattel is generally removable. A dishwasher which is only connected by a power point and may be removed without damage to the property will generally be regarded as a chattel. A fixture tends to be something so built in that it forms part of the property, and the property would be damaged if the fixture were removed. A dishwasher permanently affixed under a bench is generally regarded as a fixture.

If the property is not in the same condition as at the contract date, fair wear and tear excepted (other than being substantially destroyed), or if chattels sold with the property have been removed, the purchaser has no legal right to delay settlement, but only have a right to sue you for compensation later (although if you let our office know there is a problem, we may be able to resolve it prior to settlement).

If the property had marks on the walls or spots on the carpet or appliances that did not work when they first inspected, then you do not have an obligation to clean the property or fix the appliances – you only have to hand it over in the same condition as at the contract date (fair wear and tear excepted).

Your agent will be in charge of arranging any final inspection.

Vacant possession at settlement
The contract provides for vacant possession at the time of settlement. In reality, it may be that you could still be loading your removalist truck at the time. We suggest that if you plan to move out on the settlement date, you contact the agent directly in the week before settlement to discuss timing, as the actual time of settlement will not be arranged until shortly prior to settlement.

Services
Electricity, gas, water, sewerage, and telephone services are set out in the Section 32 Vendors Statement. You will have to arrange for disconnection of services as from the date of settlement, and you will have to pay any relevant disconnection and due usage fees.

Building works
If any works at all have been carried out at the property during the past 7 years, you need to tell our office because this could mean that these works were unauthorised. If unauthorised works were carried out, the purchaser may have the option of withdrawing from the purchase and/or requiring you to obtain the necessary permits, inspections and warranty insurance, if applicable.

The purchaser may seek to obtain a building inspection report from an authorised building inspector as a condition in their contract. Of course you do not have to agree to grant access to the building inspector to access the property and therefore do not have to agree to the special condition, but it may prevent a sale.

Swimming pool
The law also requires pools to be adequately fenced and the relevant permits granted. If you do not have your pool fenced or the necessary permits approved, please advise our office immediately.

Other information in the vendor’s statement

Easements
Registered easements are shown on the plan attached to the title. Easements should not have any construction over them of a permanent nature. If there is some type of construction over any easement, please advise our office immediately.

You also need to be aware that easements may also be ‘implied’ for the purposes of sewerage, gas, electricity and telephone lines. Please inform our office if there are any such easements on your property.

Notices and orders
The Section 32 Vendors Statement will outline whether you are aware of any notices or orders affecting the property (other than current rates notices). If a notice or order is issued in respect to the property, generally the purchaser will be responsible to comply with it from the date of the contract. We will undertake normal checks in relation to these matters and the property generally. If there are any unusual matters or you have any particular concerns, please urgently contact our office to discuss this.

Measurements
A copy of the plan will be incorporated in the Section 32 Vendors Statement. If you are aware of any discrepancies with the plan, including location of fences, please advise our office immediately. Be aware that the purchasers may check that the property is of the right dimensions and that the location is correct, and that any fences on the property are situated exactly on the boundaries. Any objection by the purchaser must be made to you within 21 days of the date of the contract. An objection may possibly justify a claim for compensation and we will advise you further if necessary.

Some Common Questions

What will I be charged if my transaction falls through?

If your transaction falls through we will charge a proportion of our fee which relates to the amount of work we have carried out. Therefore the cost to you will depend on what stage the transaction failed. Any expenses (disbursements) already incurred on your behalf will also be payable.

I cannot get into your office to sign documents – is this a problem?

No. We regularly deal with legal work and conveyancing transactions all over Victoria for clients who are based anywhere. It is not necessary for you to be able to visit our offices. We can deal with everything by video, post, email and telephone.

What is a Verification of Identity?

With most conveyancing transactions nowadays completed online through the PEXA network, all parties to a conveyancing transaction are required to have their identity verified to reduce the risk of fraud and confirm their authority to buy or sell nominated land or property.

With Mr Conveyancer you will be asked to complete your Verification of Identity at Australia Post or you can do so by appointment at our offices. In any event, we will be sure to guide you through the process from start to finish.

Why Mr Conveyancer?

We’re not just conveyancers, we’re an established law practice here to help you.

  • You’re more than just a number.
  • Great experience at a great price.
  • What you need to know, when you need to know it.
  • First Home Buyers to seasoned investors, every property transaction is just as important as the other.
  • Fixed fees, so you know you’re paying a guaranteed amount
  • Transparent and clear communication, so you know what’s happening at all times.
  • Conveyancing carried out without rushing, for your peace of mind
  • We enjoy talking to you on the phone as well as email, because we know you don’t want to be dealt with by a robotic lawyer who ignores you.
  • Local knowledge, so we already know about the area where you’re buying or selling. This could stop you from making a costly mistake