Why should you have a Contract and Section 32 reviewed before signing?

Why do you need a Contract of sale review?

A contract of sale of real estate is a legal document that contains terms and conditions between the parties. Once it is signed, it binds both parties. There are major terms and not major terms (warranty) in a contract, and you need to understand what major terms can lead to the consequences of ending a contract once a party is in default. There might be terms in a contract that are not fair to you, and you need to negotiate with the vendor. Or sometimes, unfair terms might give you a hint of what the vendor is trying to do in the sale. There are non- major terms (or so-called warranty), which means that even if one party breaks the terms, the settlement can not be delayed or cancelled. Such as, if the fence is broken or damaged before settlement, the purchaser can either ask the vendor to fix it or request to deduct some monies equivalent to the cost to fix the fence from the settlement monies but cannot delay settlement. We call it vendor’s warranty “a vendor must keep the property in the same condition as it was on the day of sale, except for fair wear and tear.

To understand the contract under the contract’s terms language and what your obligations are, we should have the contract reviewed before signing. A contract review will give you an understanding of what you are bound. It is also mitigating the risks after signing the contract.

HN Conveyancing provides you with a contract review before you sign a contract. We not only read contracts and explain to you what the terms are but also point out what is not fair and what might ring a bell to you and plan to have a successful purchase.

Please contact HN Conveyancing at 0412770215 or hanh@hnconveyancing.com.au for more information.

Why do you need a Section 32 Review?

Section 32, Vendor statement is a statement from the vendor disclosing all facts and knowledge about the property to potential purchasers before signing a contract of sale, according to the Sale of Land Act 1962 (Section 32). Failing to disclose Section 32 or all required information pursuant to Section 32 can lead to a defective Section 32, which means a purchaser might end the contract any time before settlement (Section 32K).

As a purchaser, you should understand a vendor’s obligation to disclose and what to disclose by vendors by law. The information is, but not limited to a copy of the title, Plan, zoning, any restrictions (covenant) on the land, any third parties’ right to access the property (easement), financial figures (including rates, land tax, OC fees), VicRoads, Bushfire prone area or not, GAIC, services not connected to the land, any building works in the last 7 years…

At HN Conveyancing, We provide a Vendor statement (Section 32) review before you sign the contract. We read and explain to you what that means. We also point out to you what information is missing or supposed to be disclosed but not disclosed by vendors according to Section 32 Sale of Land Act. We also advise you of what extra searches or further necessary steps need to suit your needs or your purpose when purchasing the property.

For example, if You plan to subdivide property after settlement, we will look carefully at the property Zoning and any restrictions on the land, any easement or unregistered easement which might affect or prevent you from subdividing the land. We will provide you with all the information from government websites related to the matter to support you.

Let us know your purchase’s intention, and we will direct you to the correct information that you need.

Please contact HN Conveyancing at 0412770215 or hanh@hnconveyancing.com.au for more information.