What is a Section 32 Vendor Statement? A Plain-English Guide for Victorian Buyers
The Section 32 Vendor Statement is one of the most important documents in a Victorian property purchase. Here's what it is, what it contains, and what to look for before you sign.
If you're buying property in Victoria, you'll hear the term "Section 32" constantly. Estate agents refer to it. Your conveyancer will review it. And in Victoria, a vendor cannot legally sell a property without one. But what exactly is it — and why does it matter so much?
What is a Section 32?
A Section 32 (formally called a Vendor Statement) is a legal document that a property seller must give to a prospective buyer before a contract of sale is signed. It takes its name from Section 32 of the Sale of Land Act 1962 (Victoria), which sets out exactly what information a vendor must disclose.
In simple terms, it's the seller's legal obligation to disclose specific prescribed information about the property — title details, encumbrances, outgoings, zoning, and building permits — before you commit to buying it. Importantly, the Section 32 covers legal and statutory disclosures, not the physical condition of the building. It won't tell you about structural defects, leaks, or pest damage. That's what a building and pest inspection is for.
What must a Section 32 include?
Victorian law requires a Section 32 to disclose the following:
- Title details — the certificate of title, volume and folio reference, and any mortgages or charges over the property
- Encumbrances — easements, covenants, caveats, and any other interests registered on the title
- Outgoings — council rates, water rates, land tax, and owners corporation fees (if applicable)
- Zoning and planning — the current zone, any planning overlays, and whether a planning permit has been issued
- Building permits — any permits issued in the past seven years, and owner-builder disclosure if applicable
- Statutory warnings — including the buyer's cooling-off rights and GST obligations
- Services — details of connected services such as sewerage, electricity, and gas
If a Section 32 is incomplete or materially incorrect, you may have the right to rescind (pull out of) the contract and receive your full deposit back — without the 0.2% penalty that applies when you use the standard cooling-off period. Note that you may still have incurred other costs such as legal fees or building inspection costs that you cannot recover. This is one of the strongest buyer protections in Victorian property law.
Is a Section 32 the same as a Contract of Sale?
No — but they are often combined into one document. The Section 32 is the disclosure component: it tells you about the property. The Contract of Sale is the agreement: it sets out the price, settlement date, deposit amount, and special conditions.
In practice, Victorian solicitors almost always bundle both into a single PDF. You'll see the Section 32 pages followed by the Contract of Sale pages. Both are important, but they serve different purposes.
When do you receive the Section 32?
The legal requirement is that the vendor must give you the Section 32 before you sign a contract — not necessarily before you make an offer. A verbal or written offer can be made without the Section 32 in hand, but the vendor cannot ask you to sign a contract until you have received it. You are under no obligation to sign anything until you have reviewed it.
If you're buying at auction, you'll typically receive the Section 32 at the open for inspection or on request from the agent. Because there's no cooling-off period at auction, it's especially important to review it thoroughly before bidding.
What should I look for in a Section 32?
Most buyers focus on the price and the property. But the Section 32 often contains details that can significantly affect the value, usability, or cost of ownership:
- Easements that run across the land and restrict where you can build
- Restrictive covenants that limit what you can do with the property (e.g. subdivide, run a business)
- Owners corporation (body corporate) fees that add to your ongoing costs
- Mortgages or caveats on the title that the vendor must discharge before settlement
- Zoning overlays that affect future development potential
- Special conditions in the contract that modify your standard buyer protections
Do I need a lawyer or conveyancer to review it?
Yes — always. A Section 32 is a legal document, and a licensed conveyancer or solicitor should review it before you sign anything. They will identify issues that may not be obvious to a layperson and advise you on what questions to ask the vendor.
That said, it's valuable to understand the key terms yourself before that meeting. The more you know, the better the questions you can ask your conveyancer — and the less likely you are to be caught off-guard.
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