If you are buying property in Victoria, the Section 32 Vendor Statement is one of the most important documents you will ever read. It tells you everything the vendor is legally required to disclose about the property before you sign a contract of sale. Here is what it is, what it must contain, and the critical things to check before you commit.
What Is a Section 32?
A Section 32 Vendor Statement (named after Section 32 of the Sale of Land Act 1962 Vic) is a legal document that the vendor must provide to every prospective buyer before a contract of sale is signed. It discloses key information about the property’s legal status, obligations and encumbrances.
What Must a Section 32 Contain?
- Title details — certificate of title, ownership, any mortgages or encumbrances
- Easements and covenants affecting the land
- Planning and zoning information
- Building permits issued in the last 7 years
- Owner-builder work disclosure (if applicable)
- Outgoings — council rates, water rates, owners corporation fees (if applicable)
- Services connected to the property (water, gas, electricity, sewerage)
- Land tax (if payable)
- Any notices or orders issued by authorities (e.g. road widening, heritage)
- Particulars of any lease or tenancy
What Are the Red Flags to Check in a Section 32?
| Red Flag | What It Means |
|---|---|
| Unpermitted building works | Structures built without council permit — may require retrospective approval or demolition |
| Owners corporation fees | Ongoing fees that significantly affect cash flow — check the OC financial statements attached |
| Easements or restrictions | May limit what you can build or how you can use the land |
| Heritage overlay | Restrictions on alterations, extensions or demolition |
| Flood/bushfire overlay | Insurance implications and restrictions on development |
| Road widening reservation | Part of the land may be resumed by council in future |
| Notice of default on mortgage | Vendor may be under financial pressure — affects settlement risk |
Can I Sign the Contract Without Reading the Section 32?
You should never sign a contract of sale without reviewing the Section 32 with a qualified conveyancer or property solicitor. Once you sign, you are bound by the contract regardless of what the Section 32 contains — unless there is a material defect in the Section 32 itself (which may give you a right to rescind).
How Long Do I Have to Review a Section 32?
In Victoria there is no mandatory cooling-off period for properties sold at auction. For private sales, there is a 3 business day cooling-off period after you sign — but this is not a substitute for a proper Section 32 review before signing. Budget 2-3 days for your conveyancer to review the document thoroughly.
GeeVee Verdict
The Section 32 is not a formality — it is the vendor’s legal disclosure to you. Every buyer in Victoria must read it carefully with a qualified conveyancer before signing anything. The most common and expensive mistakes in property buying come from buyers who skip this step. Budget $1,200-$2,000 for a conveyancer and treat it as essential insurance on a purchase worth hundreds of thousands of dollars.
Frequently Asked Questions
What happens if the vendor provides an incomplete Section 32?
A defective Section 32 may give the buyer the right to rescind the contract before settlement. The vendor’s agent and conveyancer are responsible for ensuring the document is complete and accurate.
Is a Section 32 the same in every state?
No. Victoria uses a Section 32 Vendor Statement. Other states have equivalent disclosure documents under different legislation — for example, a Form 1 in South Australia or a Vendor Disclosure Statement in NSW.
Can I get a Section 32 before making an offer?
Yes, and you should. Ask the selling agent for the Section 32 before making an offer or bidding at auction. Reputable agents provide it to any genuinely interested buyer.
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