During the sale of any home, there is a lot of paperwork to be handled and certain rules and regulations to be followed in accordance with Australian law. The process can be quite lengthy, even though it is very commonplace, and it's important to follow procedure in order to be as protected as possible. If you think that this is something you can handle yourself, you need to pay particular attention to certain clauses and, in particular, something called 'Section 32'. If you've never heard of this, why should you pay additional attention?
A Section 32 document is also known as a vendor statement in some circles. It typically includes very detailed and specific information that may have been agreed upon between the two parties during negotiation. For example, there may be restrictions attached to the use of the property, and the seller is obliged to inform the buyer of these. It's not good enough to simply do this verbally, however, as the information needs to be included within the vendor statement.
The document will include the basic detail of the property, but it should also include information related to any improvements that may have been made in the past. It should also draw attention to any encumbrances or charges against the property and reveal whether a third party has any involvement. In this latter case, it could include an owners corporation which may be responsible for managing common areas.
The seller will also need to advise the buyer of any restrictions imposed by a homeowners association or similar and will need to tell them if the property is located in one of the various bush fire zones around the country.
Certainly, the seller should be aware of any peculiarities, but this is not always the case. It's a good idea for the seller to familiarise themselves with all the relevant records held by government authorities, and they should do a comprehensive search just to be 100% confident.
Remember, if the statement is incomplete in any way, a buyer can pull out of the contract in between the initial signature and settlement day. They can argue that they were not fully informed, and they may seek some compensation from the seller to help them deal with their legal costs.
The Better Approach
All in all, it's best to hand over responsibility for these issues to a professional conveyancer. They will ensure that the Section 32 documentation is complete and ready to support the transaction. Contact a conveyancing service like West Legal & Associates for more information.Share