Buyer's Guide
What is a Section 32 Vendor Statement?
A plain-English guide for Victorian property buyers — what it is, what it must include, and what to watch out for before you sign.
The basics
A Section 32 Vendor Statement (commonly called a "Section 32" or "Vendor Statement") is a legal document that a vendor (seller) must provide to a buyer before a contract of sale is signed for Victorian real estate.
It is named after Section 32 of the Sale of Land Act 1962 (Vic), which sets out exactly what the vendor must disclose. The purpose is to give the buyer all material information about the property before they commit to purchasing.
If a vendor fails to provide a compliant Section 32, the buyer may have the right to rescind (cancel) the contract.
What must a Section 32 include?
The law requires the vendor to disclose:
Title details
The certificate of title showing ownership, volume and folio number, and any registered encumbrances (mortgages, caveats, easements, covenants).
Easements and covenants
Any registered rights that allow others to use part of the land (e.g. drainage, sewerage, power lines) or restrictions on what you can build.
Zoning and planning
The planning zone and any overlays (heritage, flood, bushfire, etc.) that affect what can be done with the land.
Building permits
Any building permits issued in the past seven years, along with any certificates of final inspection or occupancy.
Outgoings
Council rates, water rates, land tax, and owners corporation fees (if applicable) so the buyer knows the ongoing costs.
Statutory warnings and notices
Standard warnings about the cooling-off period, GST, and the vendor's obligations under the Sale of Land Act.
Owners corporation
If the property is part of an owners corporation (e.g. apartments, townhouses), the relevant fees, rules, and financial statements must be included.
Services and infrastructure
Details of water, sewerage, drainage, gas, and electricity connections. Also any notices from authorities affecting the property.
Common issues buyers find in a Section 32
Many buyers are surprised by what turns up. These are the most common issues our AI identifies:
An undischarged mortgage — the vendor's bank still has a registered interest over the property and it must be cleared at settlement.
A restrictive covenant limiting how you can use or develop the land (e.g. single-storey only, no subdivision, no commercial use).
A heritage overlay — requiring planning permission for any external alterations, extensions, or demolition.
A building permit with no certificate of final inspection — meaning work may not have been approved or completed properly.
A drainage or sewerage easement running through the yard, preventing permanent structures in that area.
Blank or missing fields in the vendor statement — which may indicate the Section 32 has not been properly executed.
High or unexpected outgoings — particularly land tax, or owners corporation fees on townhouses and apartments.
The cooling-off period
In Victoria, residential property buyers have a 3 clear business day cooling-off period after signing a contract of sale. During this time you can withdraw from the contract — but you will forfeit a penalty of $100 or 0.2% of the purchase price (whichever is greater).
The cooling-off period does not apply to properties purchased at auction, or where you have signed a statement waiving the right.
This is why reviewing the Section 32 before signing is so important — once you waive or exhaust your cooling-off rights, withdrawing from the contract can be very costly.
Why AI analysis helps
A typical Section 32 is 20–60 pages long and written in dense legal language. Most buyers read it quickly — or not at all — and miss critical issues.
Translates legal jargon into plain English
Flags risks by severity so you know what to focus on
Extracts key facts (title, vendor, outgoings) with evidence quotes and page references
Generates specific questions to ask your conveyancer
Takes just a few minutes
Section32Check does not replace your conveyancer — it helps you walk into that conversation prepared, with the right questions already in hand.
General information only. This guide is educational and does not constitute legal advice. Always engage a licensed conveyancer or property solicitor before purchasing real estate in Victoria. Consumer Affairs Victoria: 1300 558 181.
Ready to understand your Section 32?
Upload your document and get a full plain-English analysis in minutes.