What is a Section 32? Understanding common conveyancing terms.

Buying or selling property is a significant transaction, and the process can often feel overwhelming, especially when confronted with legal terms that might be unfamiliar. Maddens Lawyers' experienced conveyancing team has broken down common conveyancing terms to help you understand them.

Conveyancing: The terms you need to know

• Certificate of Title or eCT: The official document that confirms the ownership of the property. It outlines the owners, provides a description of the property, and lists any encumbrances or restrictions, such as a mortgage. This document is now only provided in electronic form, referred to as an eCT or Electronic Certificate of Title.
• Contract of Sale: The formal agreement between the buyer ("Purchaser") and seller ("Vendor") that sets out all of the agreed terms, including the sale price, deposit and settlement date.
• Conveyancing: The legal process of transferring ownership of the property from the Vendor to the Purchaser. A conveyancer will help you navigate the process, assisting with everything from preparing the contract of sale to finalising the transaction at settlement.
• Cooling-Off Period: A specific time frame after signing the contract in which the Purchaser can change their mind and cancel the purchase with limited consequences.
• Deposit: A percentage of the sale price that is paid by the Purchaser at the time of signing the contract. This is often held in trust until settlement.
• Disbursements: Additional costs that may arise during the conveyancing process, such as title search fees and other relevant certificates that provide information about the property. These are paid through the conveyancer.
• Electronic Lodgement Network Operation ("ELNO"): All transfers of land are now completed within an ELNO, unless an exception applies. Currently, the only ELNO operating in Victoria is PEXA. This is a secure online platform for transferring property and funds at settlement, facilitating the Title being registered to the Purchaser almost instantly, and the Vendor receiving cleared funds on the day of settlement, in most cases.
• Pre-Settlement Inspection: The final inspection of the property, which can be done at any time within the seven days prior to settlement, ensuring it is in the same condition as it was at the time of signing the contract, and that all requirements have been met.
• Settlement: The final stage of the conveyancing process, in which legal ownership of the property is transferred to the Purchaser, and keys are exchanged.
• Section 32 Statement: A disclosure document provided by the Vendor to the Purchaser outlining important information about the property, such as council and other rates, zoning and easements. This is a mandatory document in the conveyancing process.
• Stamp Duty: A government tax on the purchase of the property, calculated as a percentage of the purchase price and payable by the Purchaser at settlement.
• Titles Office Fees: A government fee for all transfers of property. This is also calculated as a percentage of the purchase price and is payable by the Purchaser at settlement.
• Verification of Identity (VOI): A legal requirement in which the Purchaser and Vendor must provide proof of their identity through certified documents.

Maddens Lawyers are experienced in conveyancing

Understanding the buying and selling process is important to ensure you feel confident in your transaction. At Maddens Lawyers, we are with you every step of the way. Whether you're buying or selling, our experienced conveyancers and property lawyers are here to help. Contact us today on 1800 815 228 or request a call back.