What Is a Section 32 in Victoria?
Before you sign any contract to buy residential property in Victoria, the vendor (seller) must give you a Section 32 Vendor’s Statement. This is one of the most important documents in a Victorian property transaction — and most buyers do not know how to read it. Here is exactly what it is, what it contains, and what to look for.
What Is a Section 32?
A Section 32 — formally called a Vendor’s Statement under the Sale of Land Act 1962 — is a legal document the vendor must provide to every prospective buyer before a contract is signed. It discloses key information about the property that the vendor is legally required to reveal.
What Does a Section 32 Contain?
- Title details: Who owns the property, any mortgages, caveats or encumbrances registered on the title.
- Planning information: The zoning of the property, any overlays (flood, heritage, vegetation, etc.) and planning permits.
- Outgoings: Council rates, water rates and owners corporation fees (if applicable).
- Owners Corporation details: If the property is in a strata or apartment complex, the OC fees, financial statements and any major works planned.
- Building permits: Any building permits issued in the last 7 years and whether a Certificate of Final Inspection was issued.
- Services: Whether the property is connected to mains water, sewerage, electricity and gas.
- Access: Whether the property has legal road access.
- Warranty: Whether a builder’s warranty exists for any construction work.
What Should I Look For in a Section 32?
Key red flags to check for include: caveats or encumbrances on the title that have not been disclosed verbally, planning overlays (particularly flood or heritage overlays that restrict development), missing certificates of final inspection for recent building work, high owners corporation fees or a depleted OC repair fund, and any easements or covenants that restrict how you use the property.
Do I Need a Lawyer to Review a Section 32?
You should have a conveyancer or solicitor review the Section 32 before you sign the contract. A Collings Property Advisor can also flag the key issues in the Section 32 as part of your advisory service — particularly the planning overlays, title encumbrances and OC issues that affect the property’s value and your ability to use it.
Section 32 vs Contract of Sale — What Is the Difference?
| Section 32 | Contract of Sale | |
|---|---|---|
| What it is | Vendor disclosure document | Legally binding purchase agreement |
| Who prepares it | Vendor’s solicitor | Vendor’s solicitor |
| When you receive it | Before contract signing | At point of purchase |
| Can you negotiate after receiving it? | Yes | During cooling off only |
Frequently Asked Questions
Is a Section 32 the same as a contract of sale?
No. The Section 32 is a disclosure document. The contract of sale is the legally binding agreement to purchase. You should receive the Section 32 before you sign the contract.
What happens if the Section 32 has incorrect information?
If the vendor provides false or misleading information in a Section 32, the buyer may have grounds to rescind the contract and claim damages. Always have a solicitor review it before signing.
Do I need a Section 32 for an off-market purchase in Victoria?
Yes — a Section 32 is legally required for all residential property sales in Victoria, including off-market transactions.
Get Professional Help Reviewing Your Section 32
A Collings Property Advisor reviews the key issues in your Section 32 as part of our buyer advisory service — flagging planning overlays, title issues and OC problems that affect value and your future use of the property. Fixed fee $4,500 + GST. Get started at collings.com.au/portal.
