Section 32 Vendor Statements in Victoria: What Buyers Should Check

What is a Section 32 vendor statement?

A Section 32 vendor statement (often just called a “Section 32”) is a disclosure document the seller must give a buyer under section 32 of the Sale of Land Act 1962 (Vic). It tells you the key legal and practical facts about the property, so you can decide whether to buy and on what terms.

The seller must sign it and give it to you before you sign the contract of sale. Agents usually make it available during the campaign, often as a download or at open inspections.

What a Section 32 must include

The exact contents depend on the property, but a Section 32 commonly includes:

• Title details: a copy of the register search statement showing the registered owner, mortgages, caveats and other interests on the title.
• Easements, covenants and restrictions: for example, drainage or sewerage easements, or a covenant limiting what you can build.
• Planning information: the planning zone and any overlays (such as heritage, flooding or bushfire overlays) that may affect how you use or develop the land.
• Outgoings: council rates, water charges and, for apartments and units, owners corporation fees.
• Owners corporation details: including an owners corporation certificate, if the property is part of one.
• Building permits: details of building permits issued in the past seven years, and owner-builder information where relevant.
• Services: which services (such as electricity, gas, water, sewerage and telephone) are and aren’t connected.
• Notices: any notices or orders affecting the land, such as a compulsory acquisition notice or a council order.
• A due diligence checklist: a standard checklist pointing buyers to further checks, such as flood and fire risk, contamination and boundary issues.

Red flags to look for

Most Section 32s are routine, but these issues are worth slowing down for:

• Easements where you plan to build: an easement running through the backyard can stop an extension, pool or second dwelling.
• Restrictive covenants: some covenants limit the number of dwellings, building materials or height.
• Planning overlays: heritage, flooding, bushfire or vegetation overlays can add cost and permit requirements to any future works.
• Missing building permits: if the home has been extended or renovated but no permits are listed, ask why. Unapproved works can be expensive to rectify.
• High or special owners corporation levies: look for planned major works, special levies or legal proceedings involving the owners corporation.
• Outstanding notices or orders: these can pass to you as the new owner.

What if the Section 32 is missing or wrong?

If the seller doesn’t give you a Section 32, or the statement contains information that is false or incomplete in a way that matters, the law may let you end (rescind) the contract. This right is generally available before settlement, and there are limits, for example where the court finds you weren’t materially affected. The timing and the way you end the contract matter, so get advice before taking any step.

Why have your Section 32 reviewed?

The Section 32 and the contract of sale work together. A review before you sign or bid at auction helps you understand what you’re buying, negotiate changes (such as a longer settlement or a finance clause), and avoid surprises at settlement. Remember that at auction there is no cooling-off period, so the review needs to happen beforehand.

At Asher Freeman Lawyers, we review Section 32 statements and contracts for buyers across Victoria, usually for a fixed fee, and explain anything that needs attention in plain English.