Home Buying Basics: The Section 32 Statement

For Sale sign outside houseAmong the most disregarded, but immensely crucial parts​ of purchasing a house is the “Section 32 Statement”. Some homeowners might or might not have heard of it, or perhaps even bought a home before without even glancing or truly understanding what was in Section 32.

If you’re a first-time homebuyer, you need to know and understand what a Section 32 Statement is to help make sure that you don’t run into any issues later on.

What Exactly is a Section 32 Statement?

Before signing a contract of sale, the lawyer of a vendor or seller would give their agent a Section 32 Statement so that the agent could, in turn, pass it on to prospective buyers. According to a top conveyancing lawyer in Townsville, in general, a Section 32 Statement would typically include the following details:

  • Title Details: This is an immensely crucial component of the statement that you should pay close attention to. Don’t forget to check the property’s measurements as stated in the property title, most particularly if what you’re planning to buy is a subdivided property. Put simply, make sure that the measurements are accurate.
  • Details about Building Permits if the Property has been Renovated Recently: If the statement includes permits and renovations, but lacks insurance information, you should ask the seller why.
  • Zoning Details: Make certain that you’re aware whether what you’re planning to purchase is a residential or commercial zone, and if it’s residential, what zone type.
  • Notices of Upcoming Orders or Works that Authorities Issued: This is very vital if there are changes to the property’s area that might impact you.
  • Outgoings: These usually include rates as well as strata or corporate body fees.
  • Easements: Easements are specific areas of the property that could be used by specific individuals or entity for a particular purpose, regardless if they’re the owner of the land or not. Easements are most commonly applied to drainage and road access. That said, easements could potentially compromise or affect any renovations that you’re planning to do.

Crucial Points to Remember

A Section 32 Statement is an important document that contains relevant details that could impact a buyer’s decision to go ahead with the purchase or not. With this in mind, once you receive this statement, it’s important that you go over it with your conveyancer or lawyer. He or she could likewise check its accuracy and determine if everything’s in order.