When you buy property in Victoria, the vendor is legally required to disclose certain information about the property before you sign. These obligations come from Section 32 of the Sale of Land Act 1962and related legislation. But the disclosure rules have significant gaps — and knowing what the vendor doesn't have to tell you is just as important as knowing what they do.
What the vendor must disclose
The Section 32 Vendor's Statement must include:
- Title particulars: The certificate of title showing the registered owner, lot and plan numbers, and all encumbrances (mortgages, caveats, easements, covenants, and restrictions).
- Planning information: The planning zone, any overlays, and any planning permits issued or applied for.
- Rates and taxes: Current council rates and whether land tax applies.
- Owner's Corporation details: If applicable, a current OC certificate showing levies, insurance, finances, and meeting minutes.
- Building permits: Details of any building permits issued in the last seven years and whether an occupancy certificate was granted.
- Services: Whether the property is connected to essential services (gas, electricity, water, sewerage).
- Road access: Whether the property has frontage to a government road.
- Known defects: Under section 32(d), the vendor must disclose any defects they are aware of that materially affect the property, including ongoing disputes and notices from authorities.
What the vendor does not have to disclose
This is where many buyers get caught out. Victorian law does not require vendors to disclose:
- Past events:A death on the property, a crime, or any “stigma” associated with the property. Unlike some other jurisdictions, Victoria has no legal requirement to disclose these matters.
- Neighbourhood issues: Noisy neighbours, disputes with adjoining owners, or antisocial behaviour in the area.
- Defects they don't know about:The vendor's obligation is limited to defects they are aware of. If a hidden structural issue exists but the vendor genuinely did not know about it, they have no obligation to disclose it.
- Future developments: A vendor is not generally required to tell you about proposed developments nearby, such as a new apartment tower or road project. You need to check this yourself through the local council.
- Environmental contamination (in some cases): While vendors must disclose contamination they know about, there is no routine obligation to conduct environmental testing.
The “buyer beware” principle
Victorian property law still operates largely on the principle of caveat emptor— buyer beware. This means the onus is on you to investigate the property thoroughly. The vendor's disclosure obligations set a minimum floor, not a complete picture.
This is why independent due diligence is so important. A building inspection, pest inspection, and thorough review of the due diligence checklist help fill the gaps that vendor disclosure does not cover.
What happens if the vendor fails to disclose?
If the vendor fails to disclose something they were legally required to include in the Section 32, you may have rescission rights under Section 27 of the Sale of Land Act. This means you can cancel the contract and get your deposit back. Common examples include missing title documents, incorrect planning information, and failure to attach an OC certificate.
However, exercising rescission rights can be complex and may require legal proceedings. Always seek legal advice if you believe the Section 32 is deficient.
Practical tips for buyers
- Do not rely solely on the vendor's disclosures. Conduct your own searches and inspections.
- Ask the agent direct questions — agents have their own disclosure obligations under the Estate Agents Act 1980.
- Check the local council website for any planning applications or proposed developments near the property.
- Talk to neighbours if possible — they often know things the vendor will not tell you.
Ready to check your contract? Upload your Section 32 or Contract of Sale at precontractreview.com for a pre-contract check — typically in just a few minutes.