How much does a section 32 cost in VIC?

Curious about the cost of a Section 32 Statement in Victoria? If you’re selling property in Victoria, obtaining a Section 32 Statement (Vendor’s Statement), is a legal requirement. The cost of a Section 32 ranges from $250 to $500, but it can vary depending on a few factors like property complexity and additional legal searches. Let’s dive into what you can expect and how to manage your Section 32 costs effectively.

Section 32 Cost in Victoria Breakdown 

When you’re looking at the cost of preparing a Section 32 statement, several key factors play a role in shaping the final fee, such as:

• Type of Property: If you’re selling a residential property, things are usually more straightforward and less costly. Commercial properties, however, often come with layers of complexity like detailed zoning laws and environmental rules, which can bump up the price because they require more thorough investigation and documentation.
  
• Size of Property: Bigger properties mean more ground to cover. For large properties, especially in rural areas, there might be various zones or easements to consider. This makes the paperwork a bit more complicated and can add to your costs.
  
• Location of Property: Where your property sits can also influence the price. Properties in areas with complicated local laws or specific regulations often require more detailed checks, which can be pricier. And if your property is in a remote area, just getting the necessary information might cost extra.
  
• Conveyancer or Lawyer’s Fees: Who you choose to work with makes a difference. Some professionals might charge more based on their experience or if you need something done quickly. Others might offer a flat fee that covers everything, which can help keep costs predictable.
  
• Additional Disbursements: These are the extra costs for things like title searches and property reports. The more complex your property’s history, the more you might need to spend on these extras.

Understanding these factors will help you gauge the potential costs involved and make sure there are no surprises during the process of obtaining your Section 32 statement.

What is a Section 32 Statement (Vendor’s Statement)?

A Section 32 Statement, or Vendor’s Statement, is a must-have document if you’re selling property in Victoria. This document gives potential buyers a complete view on the property before they sign any sales contracts. Here’s what it typically includes:

• Legal Description of the Property: This is basically the formal description of the property as recorded in official records.
• Details of Zoning and Land Use: It tells you what the property can be used for according to local laws—whether you can build a new structure, or if it’s restricted to certain types of developments.
• Information on Building Permits: This includes details of any permits issued for construction or renovations on the property.
• Disclosure of Easements and Covenants: These are the rights that others might have over the property or rules about how the property must be used.
• Outstanding Debts or Liabilities: If there are any debts like liens or mortgages attached to the property, they’ll be listed here.

Does the Buyer or Seller Prepare a Section 32? 

The Section 32 Statement is prepared by the seller of the property, not the buyer. It’s the seller’s responsibility to ensure that this document is accurate and comprehensive, containing all the necessary information about the property. Typically, the seller will work with their conveyancer or solicitor to compile and verify all the details required in the Section 32 Statement before it is presented to potential buyers.

Why You Need a Section 32 Statement

Legally, a Section 32 Statement is a requirement under the Sale of Land Act in Victoria. It ensures all transactions are transparent and above board.

Why Buyers Need It

For buyers, the Section 32 Statement is your first real glimpse into the legal and financial specifics of the property you’re interested in. It ensures that you know exactly what you’re considering purchasing, including any potential liabilities or restrictions associated with the property. This level of transparency gives buyers the confidence to make informed decisions and helps prevent any surprises down the line.

Legal Importance

If a seller fails to provide a Section 32 Statement, or if the document provided is incomplete or misleading, it’s more than just a minor hiccup. The buyer has the legal right to back out of the deal. This protects the buyer from entering into a transaction without full knowledge of the property’s status.

Consequences of Inadequate Disclosure

Not having a comprehensive Section 32 Statement can lead to significant consequences. For one, it can delay the selling process as the document may need to be amended or supplemented if initially inadequate. 

In more serious cases, it might even lead to the cancellation of the sale if crucial information is missing or incorrect, potentially leading to legal disputes or financial losses for both parties.

Preparation of a Section 32 Statement

How to Get a Section 32 Statement in Victoria 

Getting a Section 32 Statement in Victoria is a straightforward process, but it requires attention to detail to ensure everything is done correctly. Here’s how to go about it:

1. Choose the Right Professional: Start by hiring a conveyancer or solicitor who specialises in property law. They’ll be the ones to prepare your Section 32 Statement, so it’s important to choose someone with experience and a good reputation in handling such documents.
2. Gathering Information: Your conveyancer or solicitor will collect all the necessary information about the property. This includes the legal description, zoning details, any building permits, details of easements or covenants, and information about outstanding debts or liabilities associated with the property.
3. Preparation of the Document: Using the information collected, your conveyancer or solicitor will prepare the Section 32 Statement. They will ensure that the statement is comprehensive and includes all relevant information that a potential buyer should know before making a decision.
4. Review and Verification: Before the Section 32 Statement is finalised, it’s important to review it thoroughly. You should check the details to ensure accuracy and completeness. Your conveyancer will also verify that all legal requirements are met and that the document is compliant with Victorian law.
5. Distribution: Once the Section 32 Statement is prepared and verified, it’s ready to be provided to potential buyers. It must be given to a buyer before they sign the contract of sale to ensure they are fully informed about the property’s specifics.
   

Tips for Minimising Section 32 Costs

There are two main ways to keep costs down when preparing a Section 32 Statement:

• Organise Documents Early: Gather all necessary property documents, such as titles and permits, ahead of time. This speeds up the process, potentially reducing the hours your conveyancer or solicitor needs to bill you for.
  
• Choose the Right Conveyancing Team: Choose a conveyancer or solicitor with transparent pricing. Some offer flat fees for standard services, which can help you better manage your budget. Always request a detailed quote to avoid unexpected costs.

Sell Confidently with the Conveyancing Experts at Settled

Ready to sell your property with confidence? Choose the conveyancing experts at Settled. We pride ourselves on offering transparent, fair pricing and expert advice at every turn of your property selling journey – including your Section 32 Statement. 

Our friendly and professional Melbourne team is committed to guiding you smoothly through every step of your sale. Contact Settled today and experience the peace of mind that comes with having local experts by your side.

Section 32 VIC FAQs

Can you DIY a Section 32 Statement in Victoria?

You can technically prepare your own Section 32 Statement, but it’s not recommended. This document needs to be legally accurate and include comprehensive details about the property. Errors can lead to serious issues, such as the buyer pulling out of the sale. Given the complexities, most people prefer hiring a professional conveyancer who knows exactly how to handle everything correctly.

Can I do my own conveyancing in Victoria?

Yes, it’s possible to handle your own conveyancing in Victoria, but it comes with a lot of responsibility. The process involves managing a series of legal and administrative tasks that can be quite daunting without the proper experience. If you’re not familiar with legal procedures, it’s better to get professional help to ensure all aspects of the transaction are covered.

Is a Contract of Sale the same as a Section 32?

No, they serve different purposes. A Section 32 Statement provides detailed information about the property, such as zoning, outgoings, and any encumbrances, helping buyers make an informed decision. The Contract of Sale, however, is the agreement that officially records the terms under which the property will be sold, including the price and settlement conditions. Both documents are essential for a legal property transaction, but they function differently.