If you are buying property in Victoria, the Section 32 Vendor Statement is one of the most important documents you will read. It sets out the legal and financial facts about the property – who owns it, what is registered on the title, what you will pay in rates and fees, and what planning controls apply. Reading it carefully before you sign can save you from expensive surprises after settlement.
This guide explains what a Section 32 Vendor Statement is, what it must contain, and the nine essential checks every buyer should make.
What Is a Section 32 Vendor Statement?
A Section 32 Vendor Statement (often just called a “Section 32”) is a disclosure document that sellers in Victoria must give to buyers before the buyer signs a contract of sale. Its name comes from section 32 of the Sale of Land Act 1962 (Vic). The statement is usually prepared by the seller’s conveyancer or lawyer and attached to the Contract of Sale.
The purpose is simple: to give you the information you need to make an informed decision. If the seller fails to disclose required information, or the information is wrong, the buyer may in some cases be able to end the contract before settlement. Consumer Affairs Victoria provides a helpful overview on its buying and selling property pages.
What a Section 32 Vendor Statement Must Include
The exact contents depend on the property, but most statements include:
- Title details – a copy of the register search statement and plan.
- Mortgages and charges – any that will not be discharged at settlement.
- Easements, covenants and restrictions – rights of way, drainage easements and building restrictions.
- Planning information – the zone and overlays that apply to the land.
- Outgoings – council rates, water charges and any land tax.
- Owners corporation information – if the property is part of an owners corporation.
- Building permits – permits issued for work in the past seven years.
- Services – which of electricity, gas, water, sewerage and telephone are connected.
- Notices – any government notices, orders or proposals affecting the land.
Requirements are updated from time to time, so your conveyancer will check the statement against the current rules.
9 Essential Section 32 Vendor Statement Checks
1. Confirm the seller is the registered owner
The name on the title search should match the seller on the contract. If it does not – for example, the property is held by a deceased estate or a company – your conveyancer will ask for evidence that the seller has authority to sell.
2. Look for mortgages and caveats
Mortgages are normally discharged at settlement, but caveats can delay a sale if they are not withdrawn. Ask why any caveat is there and how it will be removed.
3. Understand easements and covenants
A drainage or sewerage easement may run through the backyard, limiting where you can build a pool or extension. Restrictive covenants can limit the number of dwellings, building materials or fence heights. Read our page on nominations and caveats for more on interests registered on title.
4. Check the planning zone and overlays
The planning certificate shows how the land is zoned and whether overlays apply – such as heritage, flooding, bushfire or vegetation protection. You can also look up the property on VicPlan. These controls affect what you can renovate, subdivide or build.
5. Review building permits
If the home has a newer extension, deck, carport or pool, check that a building permit appears in the statement. Unpermitted works can be costly to fix and may affect insurance.
6. Work out the real outgoings
Council rates, water charges and owners corporation fees will be adjusted at settlement and become your ongoing costs. Factor them into your budget, especially for apartments with high levies.
7. Read the owners corporation certificate carefully
For units, townhouses and apartments, look for special levies, legal disputes, major maintenance plans and insurance details. A large special levy can add thousands of dollars to your purchase.
8. Check services and notices
Make sure the services you expect are connected, and that there are no outstanding notices, such as a council order to repair a dangerous structure or a proposal to acquire part of the land.
9. Compare the statement with the contract
The Section 32 Vendor Statement and the contract should describe the same property, the same title and the same inclusions. Inconsistencies are a red flag worth raising before you sign.
When Should You Get the Section 32 Reviewed?
Always before you sign the contract – and before auction day if you are bidding. At auction there is no cooling-off period, so once the hammer falls you are bound by the contract. For private sales, a cooling-off period of three clear business days usually applies, but withdrawing costs money and the clock runs fast.
Our pre-purchase contract review covers the full Section 32 Vendor Statement and contract. We explain the risks in plain English and suggest special conditions to protect you.
What Sellers Should Know About the Section 32
If you are selling, an accurate and complete Section 32 Vendor Statement is your protection too. Prepare it before the property is advertised, disclose all building permits and owners corporation information, and update it if anything changes during the campaign. A well-prepared statement keeps buyers confident and reduces the risk of a contract falling over. Learn more about our residential property conveyancing for sellers.
Section 32 Vendor Statement Red Flags
Most Section 32 Vendor Statements are routine, but some details deserve a closer look before you sign. Watch for these red flags:
- Missing documents – no planning certificate, no owners corporation certificate for a unit, or a title search that is months old.
- Owner-builder work – recent work by an owner-builder may require domestic building insurance details and can carry a higher risk of defects.
- Unusual easements – easements in favour of neighbours or authorities that cross the main living area or garden.
- Planning overlays – heritage, flooding, bushfire or environmental overlays that limit future plans.
- Notices and orders – building orders, council notices or road-widening proposals.
- Special levies – owners corporation levies for major works that you may have to pay after settlement.
None of these automatically mean you should walk away, but each should be understood and, where possible, negotiated before signing.
Section 32 Vendor Statement vs Contract of Sale
Buyers sometimes confuse the two documents. The Contract of Sale sets out the commercial deal – the price, deposit, settlement date, inclusions and special conditions. The Section 32 Vendor Statement is the disclosure document that supports it. Both are usually bundled together, and both need to be read. A great price can be undone by a restrictive covenant in the statement, and a clean statement does not help if the contract has an unrealistic settlement date or harsh penalty clauses.
A conveyancer reviews both together, so you see the full picture before you commit. If you are buying at auction, read our tips on buying at auction in Victoria, and if you are buying privately, learn how the cooling-off period works.
Frequently Asked Questions
Who prepares the Section 32 Vendor Statement?
The seller is responsible for it, but it is usually prepared by the seller’s conveyancer or lawyer, who orders the searches and certificates needed.
Can I sign a contract without receiving a Section 32?
In Victoria the seller must give you the Section 32 before you sign. If you did not receive it, speak to a conveyancer immediately about your rights.
How long is a Section 32 valid?
There is no fixed expiry, but searches and certificates should be current. If information changes during the sale campaign, the statement should be updated.
Does a Section 32 replace a building inspection?
No. The Section 32 discloses legal and planning information, not the physical condition of the home. A building and pest inspection is still recommended.
Need help? Easy Home Conveyancing offers fixed-fee conveyancing across Melbourne and Victoria. Call 0412 850 551 or request a free quote.
