What is a Section 32? A Plain English Guide for Victorian Property Buyers

If you're buying property in Victoria, you'll hear the term “Section 32” early and often. It's one of the most important documents you'll receive during the buying process — and one of the least understood.

This guide explains what a Section 32 is, what it contains, and what you should look for before you sign a Contract of Sale.

What is a Section 32?

A Section 32, formally known as the Vendor's Statement, is a legal disclosure document required under Section 32 of the Sale of Land Act 1962 (Vic). It is prepared by the vendor (seller) or their legal representative and must be provided to the buyer before they sign the Contract of Sale.

The purpose is simple: to give you, the buyer, all the material information about the property so you can make an informed decision. Think of it as the property's disclosure report — it tells you what you're actually buying.

When do you receive the Section 32?

You should receive the Section 32 before you sign the Contract of Sale. In practice, this usually happens when you pick up the contract from the real estate agent, either at an open inspection or after expressing interest in the property.

At auction, you should request the Section 32 well in advance — ideally at least a week before auction day — so you have time to review it. Remember, there is no cooling-off period when you buy at auction, so you need to be satisfied with the Section 32 before the hammer falls.

What must a Section 32 contain?

The Sale of Land Act sets out a detailed list of information the vendor must disclose. Key items include:

• Title details: A copy of the certificate of title (or title search), showing the registered owner, lot and plan numbers, and any encumbrances (mortgages, caveats, easements, covenants, and restrictions) registered on the title.
• Planning information: Details of the planning zone the property sits in, any overlays that apply (heritage, flood, bushfire, environmental), and any planning permits that have been issued or applied for.
• Council rates and land tax: The amount of council rates currently payable and whether land tax applies.
• Owner's Corporation (OC) certificate: If the property is part of a strata or community title scheme, the vendor must attach a current OC certificate. This shows the levies, insurance, funds in reserve, any special levies planned, and the minutes of recent meetings.
• Building permits: Details of any building permits issued in the last seven years for work on the property, and whether those permits have been signed off with an occupancy certificate.
• Vendor disclosure: Under section 32(d), the vendor must disclose any defects or issues they are aware of that materially affect the property. This includes things like ongoing disputes, contamination, or notices from authorities.
• Services: Whether the property is connected to gas, electricity, water, sewerage, and telecommunications.
• Road access: Whether the property has road frontage to a government road.

Section 32 vs Contract of Sale — what's the difference?

These two documents are often bundled together, but they serve different purposes:

• The Section 32is a disclosure document. It tells you about the property itself — its legal status, physical characteristics, and any issues.
• The Contract of Sale is the actual agreement between buyer and seller. It sets out the price, deposit, settlement date, and the terms and conditions of the sale. Read our guide to Contracts of Sale for more detail.

You need to review bothdocuments carefully before signing. The Section 32 tells you what you're buying; the Contract of Sale tells you on what terms.

What happens if the Section 32 is defective?

This is where things get interesting for buyers. Under Section 27 of the Sale of Land Act, if the vendor's Section 32 is materially deficient — meaning it fails to disclose something it was required to disclose, or the information provided is misleading — you may have the right to rescind (cancel) the contract.

Section 27 rescission rights are powerful. If exercised successfully, the contract is void, your deposit is returned, and the vendor may be liable for your costs. However, exercising these rights can be complex and typically requires legal advice.

Common deficiencies that can trigger rescission rights include missing title documents, incorrect planning information, missing OC certificates, and failure to disclose known defects.

What should you do when you receive a Section 32?

Here is a practical checklist for reviewing your Section 32:

1. Check the title search is current. It should be dated within the last 30 days. Older searches may not reflect recent changes.
2. Read the plan of subdivision. Check the lot boundaries match what you inspected. Look for easements running through the property.
3. Review the planning certificate. Check the zoning and any overlays. Heritage, flood, and bushfire overlays can significantly affect what you can do with the property.
4. Read the OC certificate(if applicable). Check the levies, the insurance, the funds in reserve, and — critically — the minutes for any mention of special levies or major works. See our guide on red flags in Vendor's Statements for what to watch for.
5. Check building permits. If renovations have been done, ensure the permits were obtained and signed off.
6. Look at the vendor disclosure. Any declarations about defects, disputes, or notices should be read carefully.
7. Note what's missing.Sometimes the most important thing about a Section 32 is what's not in it.

Should you review it before paying a solicitor?

Yes. A solicitor or conveyancer will typically charge $500 to $2,000+ for a full contract review. By reviewing the Section 32 yourself first, you can identify obvious issues early and decide whether the property is worth pursuing before spending money on legal fees.

Tools like Pre Contract Review can help you quickly identify red flags, missing documents, and potential issues in your Section 32 and Contract of Sale — giving you a head start before you engage a solicitor.

That said, we always recommend getting professional legal advice before signing any contract. A quick initial review simply helps you ask better questions and avoid wasting time on properties with serious issues.