If you are buying or selling property in Victoria, you will come across a document known as the Section 32 Vendor’s Statement. This is a critical legal document in any property transaction and plays an important role in protecting buyers while ensuring sellers meet their legal obligations.
In this guide, we explain what a Section 32 is, what it must include, when it must be provided, and why obtaining legal advice is essential before signing a contract.
What Is a Section 32?
A Section32 Vendor’s Statement is a legal document required under the Sale of Land Act 1962 (Vic). It must be prepared by the seller (vendor) and provided to a prospective purchaser before they sign the Contract of Sale.
Its purpose is to disclose important information about the property so the buyer can make an informed decision before committing to the purchase.
Without a compliant Section 32, a buyer may have rights to withdraw from the contract even after signing.
Why Is It Called “Section 32”?
The name comes from Section 32 of the Sale of Land Act 1962, which sets out the information a seller must disclose before a property is sold.
When Must a Section 32 Be Provided?
The Section32 must be provided before the purchaser signs the Contract of Sale.
It is typically made available:
- Prior to auction
- At open inspections
- Upon request from an interested buyer
- Before private sale contracts are signed
If it is not provided, or if it is incomplete or misleading, the purchaser may have the right to rescind (cancel) the contract.
What Must a Section 32 Include?
A properly prepared Section 32 contains a range of disclosures relating to the property, including:
1. Title Details
- Copy of the Certificate of Title
- Any easements, covenants, or restrictions affecting the land
- Mortgages or other registered interests
2. Zoning and Planning Information
- The property’s zoning
- Planning overlays
- Any notices or proposals affecting the land
3. Outgoings
- Council rates
- Water rates
- Owners corporation fees (if applicable)
4. Services Connected to the Property
- Electricity
- Gas
- Water
- Sewerage
- Telecommunications
5. Building Permits and Insurance
If building works have been completed in the past seven years, the vendor must disclose:
- Building permits
- Occupancy permits or certificates of final inspection
- Domestic building insurance (if required)
6. Owners Corporation Information (if applicable)
- Owners corporation certificate
- Financial statements
- Insurance details
- Fees and liabilities
7. Notices and Orders
Any government notices, compulsory acquisition notices, fencing notices, or other statutory matters affecting the property.
Why Is the Section 32 So Important?
For buyers, the Section 32 provides transparency. It allows you to:
- Understand legal restrictions on the land
- Identify financial liabilities
- Confirm planning and zoning details
- Assess risks before signing
For sellers, it is a legal requirement. Failing to provide accurate and complete disclosure can result in:
- The buyer rescinding the contract
- Delays in settlement
- Potential legal disputes
Can a Buyer Cancel the Contract Because of the Section 32?
Yes in certain circumstances.
If the Section 32:
- Contains false information
- Omits required information
- Is misleading or incomplete
The buyer may have the right to rescind the contract before settlement.
However, rescission rights depend on the seriousness of the defect and the timing. Legal advice should always be obtained immediately if an issue is discovered.
Common Issues We See
Some common Section 32 problems include:
- Undisclosed easements
- Incorrect zoning information
- Missing owners corporation certificates
- Failure to disclose recent building works
- Outdated rate information
- Unregistered interests affecting title
Even small errors can create significant complications
Who Prepares the Section 32?
While the seller is legally responsible for providing it, the Section 32 is usually prepared by a:
- Conveyancer, or
- Property solicitor
Given the strict disclosure requirements, professional preparation is strongly recommended.
Should Buyers Review the Section 32 Before Signing?
Absolutely.
Even if you are purchasing at auction (where there is no cooling-off period), you should have the Section 32 and Contract reviewed before bidding.
A legal review can identify:
- Title issues
- Planning risks
- Unusual special conditions
- Financial liabilities
- Compliance concerns
Signing without review can expose you to unnecessary risk.
The Difference Between the Section 32 and the Contract of Sale
These documents work together but serve different purposes:
- Section 32: Discloses information about the property
- Contract of Sale: Sets out the terms and conditions of the transaction
Both should be reviewed carefully before signing.
Final Thoughts
The Section32 Vendor’s Statement is one of the most important documents in a Victorianproperty transaction. It protects buyers through mandatory disclosure andprotects sellers by ensuring transparency.
Whether youare buying or selling, having the document prepared and reviewed by experiencedproperty lawyers or conveyancers can prevent costly mistakes and delays.
If you areconsidering a property transaction and need advice on a Section 32 or Contractof Sale, obtaining legal guidance early can make the process smoother and moresecure.
