Section 32 statement explained — buying property in Victoria

The short version

A Section 32 statement — also called the vendor statement — is a document the seller must give you before you sign the contract of sale. It's required by section 32 of the Sale of Land Act 1962 (Vic). Its job is to disclose the things about the property you can't see by looking at it.

The contract of sale is the deal; the Section 32 is the disclosure that sits behind it. Together they're what you're agreeing to. Reading the Section 32 properly is the single most useful thing you can do before signing a Victorian contract.

What a Section 32 must contain

The Act sets out what the vendor has to disclose. The main items are:

• Title — a copy of the title and the plan, so you can see exactly what you're buying.
• Mortgages and charges — anything secured against the land that has to be released or dealt with.
• Easements, covenants and other restrictions — rights over the land and limits on what you can do with it.
• Planning — the zoning and any planning overlays affecting the property.
• Rates, taxes and other outgoings — council rates, water and any other charges, including whether any are unusually high.
• Services — which services (water, sewerage, electricity, gas, telephone) are actually connected.
• Owners corporation — if the property is in an owners corporation, its certificate or the prescribed information about fees, insurance and rules.
• Building work — particulars of any building permits issued in the last seven years (relevant to owner-builder warranties and insurance).
• Notices — any notices, orders or proposals affecting the land that the vendor knows about.
• Bushfire — whether the land is in a designated bushfire-prone area.
• Growth areas levy (GAIC) — if the land is in a contribution area, whether the levy applies.

Signed, unsigned, and "campaign" copies

The copy of the Section 32 you download from a listing site during the campaign is often unsigned — that's normal. The vendor signs it at exchange, and an electronic signature is valid. So an unsigned campaign copy is not a defect; what matters is that a statement exists and is complete. The thing to watch for is a Section 32 that's missing required information, not one that hasn't been signed yet.

What happens if it's wrong or missing

Disclosure has teeth. If the vendor doesn't give you a Section 32 before you sign, or it's missing required information or contains a material error, the Act can give you the right to withdraw from the sale (rescind) before settlement — and get your deposit back. The rules around this are specific, so it's exactly the kind of thing to raise with your conveyancer if something looks absent.

What to check before you sign

1. Is everything actually there? Title, plan, planning, rates, owners corporation (if applicable) — a gap is the most common problem.
2. Read the easements and covenants. They decide what you can build and who has rights over the land.
3. Check the zoning against your plans. If you want to extend, subdivide or run a business from home, confirm the zone allows it.
4. Look at the outgoings. High rates, owners corporation fees or special levies are real ongoing costs.
5. Note anything dated. Certificates have a shelf life; very old ones may not reflect the current position.

Common questions

Is the Section 32 the same as the contract?

No. The contract of sale is the agreement to buy; the Section 32 is the vendor's disclosure statement that must come with it. You need to read both.

Does an unsigned Section 32 mean something's wrong?

No — campaign copies are commonly unsigned and the vendor executes it at exchange. A missing statement, or one missing required information, is the real concern.

Who prepares it?

The vendor (through their conveyancer or solicitor) prepares and provides it. As the buyer, your job is to read it and understand what you're taking on before you commit.