First Home Buyer's Guide to Section 32 and Contracts of Sale

Buying your first home in Victoria is exciting, but the paperwork can be overwhelming. Between the Section 32, the Contract of Sale, title searches, and cooling-off periods, it's easy to feel lost.

This guide breaks down everything a first home buyer needs to know about the legal documents involved in buying property — explained in plain English.

The timeline: what happens and when

Here is the typical sequence of events when buying a property by private sale (not at auction):

1. You find a property you like at an open inspection or online.
2. You request the contractfrom the agent. This will include the Section 32 Vendor's Statement and the Contract of Sale.
3. You review the documents. This is where you (or your solicitor) check for issues. Read our guide to Section 32s for what to look for.
4. You make an offer (usually through the agent) or negotiate a price.
5. You sign the contract and pay the deposit (typically 10%, though this is negotiable).
6. Cooling-off period begins (3 business days for private sales).
7. Finance and conditions are satisfied during the settlement period.
8. Settlement day: your solicitor or conveyancer handles the transfer, and you get the keys.

The key documents explained

Section 32 (Vendor's Statement)

The Section 32 is the vendor's disclosure document. It tells you everything about the property: who owns it, what's on the title, planning restrictions, council rates, building permits, and more. It is a legal requirement under the Sale of Land Act 1962.

We have a comprehensive guide to Section 32s that explains every section in detail.

Contract of Sale

The Contract of Sale is the agreement between you and the seller. It sets out the price, deposit amount, settlement date, and any special conditions. In Victoria, most contracts use the standard form published by the Law Institute of Victoria and the Real Estate Institute of Victoria.

Read our detailed guide to Contracts of Sale for a section-by-section breakdown.

Title search

The title search (included in the Section 32) shows the legal owner of the property and any interests registered on the title — such as mortgages, caveats, easements, and covenants. It is your proof that the seller actually owns what they are selling.

The cooling-off period

For private sales in Victoria, buyers have a cooling-off period of 3 business days after signing the contract. During this time, you can withdraw from the contract for any reason.

However, there are important caveats:

• There is a penalty. If you cool off, you forfeit 0.2% of the purchase price. On a $700,000 property, that is $1,400.
• There is no cooling-off at auction. If you buy at auction, the contract is binding immediately. This is why it is critical to review the Section 32 and contract thoroughly before auction day.
• You can waive cooling-off. Sometimes agents will ask you to sign a Section 31 certificate (signed by your solicitor) waiving your cooling-off rights. Be very cautious about doing this unless your solicitor has thoroughly reviewed the contract.
• The period can be extended. You can negotiate a longer cooling-off period as part of your offer. This is common when you need extra time for finance approval.

First Home Buyer stamp duty exemptions

Victoria offers stamp duty concessions for eligible first home buyers. As of 2026, the thresholds are:

• Full exemption:If the property's dutiable value is $600,000 or less, you pay no stamp duty at all.
• Concession:If the property's dutiable value is between $600,001 and $750,000, you receive a graduated concession that reduces the stamp duty payable.
• No concession: Above $750,000, you pay the standard stamp duty rate.

To be eligible, you must be a natural person (not a company or trust), an Australian citizen or permanent resident, and you must not have previously owned a residential property in Australia. The property must also be your principal place of residence, and you must move in within 12 months and live there for at least 12 continuous months.

For a full breakdown of all the costs involved in buying property, see our guide to hidden costs.

Common first home buyer mistakes

1. Not reading the contract before auction. At auction there is no cooling-off period. If you have not reviewed the Section 32 and contract, you are buying blind.
2. Relying only on the building inspection. A building inspection tells you about the physical condition of the property, but it does not tell you about planning restrictions, easements, or OC issues. You need to review the Section 32 as well.
3. Not budgeting for the full cost. The purchase price is just the start. Stamp duty, conveyancing fees, building inspections, and moving costs can add $20,000 to $50,000+ to your total outlay.
4. Waiving cooling-off without understanding the contract. Some agents will push you to waive your cooling-off period to make your offer more competitive. Never do this without a full legal review.
5. Not checking the OC for apartments. The OC certificate and minutes can reveal major upcoming costs. Read our guide to red flags in Vendor's Statements for what to look for.

Your pre-signing checklist

Before you sign the Contract of Sale, make sure you have done the following:

• Read the Section 32 and checked for the common red flags
• Reviewed the Contract of Sale, including all special conditions
• Confirmed your finance pre-approval is current and covers the purchase price
• Organised a building and pest inspection (or plan to during cooling-off)
• Checked your stamp duty obligations and first home buyer eligibility
• Engaged a solicitor or conveyancer (or at least identified one)
• Calculated the full cost of purchase, not just the price — see our hidden costs guide

Want a quick, affordable way to check your contract before engaging a solicitor? Pre Contract Review analyses your Section 32 and Contract of Sale in under 30 seconds, flagging red flags and missing documents so you know what to ask your solicitor about.