Section 32 Vendor Statement in Victoria: A Guide for Buyers and Sellers
If you are buying or selling property in Victoria, the Section 32 Vendor Statement is one of the most important documents in the transaction. It is a legal disclosure statement that must be provided by the seller before the buyer signs the contract of sale.
For sellers, preparing a proper Section 32 is essential to avoid delays, disputes, and the risk of the buyer pulling out of the contract. For buyers, reviewing the Section 32 carefully can reveal important issues affecting the property before any commitment is made.
What is a Section 32 Vendor Statement?
A Section 32 Vendor Statement is a disclosure document that a seller must provide to a prospective purchaser before the purchaser signs a contract to buy land in Victoria.
It is called a “Section 32” because the disclosure obligations come from section 32 of the Sale of Land Act 1962 (Vic).
The purpose of the document is to give the buyer important information about the property so they can make an informed decision. It is separate from the contract of sale. The contract sets out the terms of the transaction, while the Section 32 discloses matters affecting the land.
Why is a Section 32 important?
A Section 32 is important because it tells the buyer about legal and practical issues that may not be obvious from inspecting the property.
For example, it may reveal:
- restrictions on title
- mortgages or charges on the property
- zoning or planning controls
- owners corporation issues
- building permits for recent works
- notices affecting the land
- services not connected to the property
For sellers, an accurate Section 32 helps support a smooth transaction. For buyers, it provides an opportunity to identify risks before signing.
Do sellers need to provide a Section 32 in Victoria?
Yes. In most Victorian property sales, the seller must provide a Section 32 Vendor Statement before the buyer signs the contract.
This applies whether the property is being sold through a real estate agent or by private sale. A seller should ideally have the Section 32 prepared before the property goes on the market so it is ready when buyers ask for it.
What must be included in a Section 32 Vendor Statement?
The contents of a Section 32 will depend on the property, but commonly include:
Title details
This shows who owns the property and whether the seller has authority to sell it.
Mortgages, charges and restrictions
The statement should disclose matters such as mortgages, caveats, easements, covenants, and other restrictions affecting the land.
Rates and outgoings
This may include council rates, water rates, owners corporation fees, and other charges affecting the property.
Planning and zoning information
This helps buyers understand how the land may be used and whether there are planning controls or overlays affecting future development.
Notices and orders
Any notices or orders from government authorities affecting the property should be disclosed.
Services connected to the property
The Section 32 should state whether services such as electricity, gas, water, sewerage and telecommunications are connected.
Building permits and works
If building works have been carried out, relevant permit information may need to be included.
Owners corporation information
If the property is affected by an owners corporation, the seller should provide the relevant certificate and supporting material.
A Section 32 is not the same as a building inspection report or pest report. Buyers may still need to carry out additional due diligence.
What should buyers look for when reviewing a Section 32?
A buyer should not simply check that the document has been provided. It needs to be read carefully.
Some of the most important issues to review include:
Restrictions on title
Easements, covenants and section 173 agreements can affect how the land may be used or developed.
Planning controls
Zoning and overlays may affect renovation, subdivision or redevelopment plans.
Rates and ongoing costs
The Section 32 helps buyers understand the financial obligations attached to the property.
Building permits
If recent works have been done, buyers should check whether the proper permits are disclosed.
Owners corporation issues
For apartments, units and townhouses, the owners corporation certificate can reveal fees, levies, rules, maintenance issues and possible future expenses.
Services
A buyer should confirm whether all essential services are connected, particularly in regional, fringe or newly developed areas.
What happens if a Section 32 is missing or defective?
This is where many sellers get caught.
If a Section 32 is not given before the contract is signed, or if it is incomplete or misleading, the buyer may have rights to end the contract depending on the circumstances.
That is why sellers should not treat the Section 32 as a formality. A poorly prepared Section 32 can undermine the sale and create avoidable legal risk.
Who prepares the Section 32?
A Section 32 is usually prepared by a solicitor or conveyancer acting for the seller.
Because the document has legal consequences, professional preparation is usually the safest approach. Errors or missing information can be costly.
How long is a Section 32 valid?
A Section 32 does not have a fixed expiry date, but it should remain accurate at the time it is given to the buyer.
If important information changes, such as rates, notices, title details, or owners corporation information, the document should be updated before the contract is signed.
Do buyers need a lawyer to review the Section 32?
Yes, in most cases that is a smart decision.
Even where the Section 32 appears complete, a lawyer or conveyancer can identify issues that a buyer may overlook. A legal review can help the buyer understand whether any disclosed matter creates a real risk or affects their intended use of the property.
Buying property is a major financial commitment. It is not the place to guess.
Final thoughts
A Section 32 Vendor Statement is a critical part of any property sale in Victoria. Sellers need it prepared properly before a buyer signs the contract. Buyers need to review it carefully before committing to the purchase.
A well-prepared Section 32 helps avoid disputes, reduces risk, and supports a smoother conveyancing process.
If you are buying or selling property in Victoria, obtaining legal advice early can make the transaction clearer, safer, and far less stressful.
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