Mr Wang found a house with a backyard in Melbourne's east, and the agent urged him to sign that day, handing him a thick document and saying, ‘This is the Section 32 – it's all standard.’ In fact, this document is one of the most important papers in a Victorian property purchase: it records whether there are easements over the land, whether there are undischarged mortgages, what the planning zone is, whether there have been building permits in recent years, and more. Understand it first, then decide whether to sign.
At a glance
- The Section 32 vendor statement is required by the Sale of Land Act 1962 (Vic) and must be given to the buyer before they sign the contract.
- It covers title, mortgages, easements and restrictive covenants, planning zone, owners corporation, building permits, and outgoings and taxes.
- If the statement is inaccurate, incomplete or not provided at all, the buyer may in certain circumstances be able to end the contract before settlement.
- A Section 32 does not tell you everything: building condition, termites, noise, school zones and so on still need your own enquiries.
- Under amendments passed in 2026, from 1 June 2027 at the latest vendors are expected to have to make the Section 32 available earlier (for example, at least 14 days before an auction).
What is in a Section 32?
A complete vendor statement usually attaches a copy of the Register Search Statement and title plan, and sets out the following:
- Mortgages and charges: whether there are undischarged mortgages and whether they will be discharged at settlement.
- Easements, covenants and other restrictions: for example drainage or sewerage easements, or restrictive covenants limiting building height or materials.
- Planning information: the applicable planning scheme, zone and overlays, such as heritage or flood overlays.
- Outgoings and taxes: council rates, water rates, land tax and any amounts owing.
- Building permits and insurance: building permits issued in recent years, any owner-builder work and related building insurance details.
- Owners corporation certificate: required for apartments, townhouses and other subdivided property, showing fees, special levies, disputes and more.
- Government notices and services: notices affecting the property, services not connected (such as gas or sewerage), and whether it is in a bushfire-prone area.
What should you focus on before signing?
First, check the vendor's identity. The registered proprietor on title should match the vendor named in the contract; if an executor, company or trustee is selling, confirm they have authority to sell. Second, look at where easements run. You generally cannot build over an easement, which matters if you plan to add a garage or pool. Third, check the zone and overlays. A heritage overlay may restrict demolition or alterations; if you plan to subdivide or redevelop later, ask before you sign.
Fourth, pay attention to recent building work. Owner-builder work or unpermitted alterations can cause problems when you resell or insure. Fifth, apartment buyers should read the owners corporation certificate carefully for arrears, upcoming special levies, legal disputes and maintenance plans.
What if the statement is wrong or incomplete?
If the vendor did not provide a vendor statement, or important information in it is false or incomplete, the law in certain circumstances allows the buyer to end the contract before settlement (payment of the balance) and recover the deposit. However, if the vendor acted honestly and reasonably and the buyer was not substantially disadvantaged, a court may not allow the contract to be ended. Whether you can end the contract depends on the facts, so seek legal advice promptly once you spot a problem and keep all correspondence; once settlement occurs, this right generally no longer applies.
What a Section 32 does not tell you
The vendor statement mainly discloses legal and title information; it does not guarantee the condition of the home. Structural issues, termites, leaks, neighbourhood noise and school zones require your own due diligence, such as engaging a qualified building inspector. The Victorian Government also publishes a due diligence checklist, which vendors or agents must make available at inspections and which is a useful reference.
New rules coming in 2027
In 2026 Victoria passed the Consumer Legislation Amendment Act 2026, which sets new timing for vendor statements. According to Consumer Affairs Victoria, from 1 June 2027 the Section 32 is expected to be required at least 14 days before an auction or fixed-date sale, and within 14 days after advertising begins for a private sale. If information changes before signing, the vendor must also notify the buyer in writing. Until the new rules commence, the current requirement is simply that the statement be given before signing, so buyers should not assume they will have two weeks to read it.
Practical checklist before signing
- Make sure you have the full Section 32 and contract, and have them reviewed by a lawyer or licensed conveyancer.
- Check that the vendor's name, address and lot/plan number match the title.
- Mark where easements run on the plan and confirm the zone and overlays.
- Apartment buyers: read the owners corporation certificate, recent meeting minutes and maintenance fund position.
- Arrange building and pest inspections, and confirm your finance approval.
- Overseas buyers should also check foreign investment approval and additional taxes and duties.
Frequently asked questions
Who prepares the Section 32?
It is usually prepared by the vendor's lawyer or conveyancer and signed by the vendor. Buyers should have their own legal representative review it rather than relying on the agent's explanation.
I have already signed and only now found a problem with the Section 32. Is it too late?
Before settlement, a buyer may still be able to end the contract in certain circumstances on the basis that the statement is false or incomplete, but it depends on the facts. Seek legal advice quickly and do not simply stop paying or refuse to settle on your own.
Is there a Section 32 for auction purchases?
Yes. The vendor should provide the Section 32 before the auction, and buyers should review it before bidding, because a sale at auction generally has no cooling-off period.
Will the Section 32 tell me about termites or leaks?
Generally no. The vendor statement mainly covers legal and title information; the condition of the property needs to be checked through professional building and pest inspections.
What should overseas buyers pay special attention to?
Beyond the usual matters, also consider holding costs such as land tax and vacant residential land tax, as well as foreign investment approval and the foreign purchaser additional duty. These are not necessarily all set out in the Section 32.
Chua Tan Associates has practised in Melbourne since 1990, acting on property purchases and sales, conveyancing, building contracts and property disputes in Mandarin, Cantonese and English. Tan Chua has long handled property and commercial matters for Melbourne's Chinese community. For help, call 03 9602 3988 or contact us online. We can meet at our Melbourne CBD office or by video.
This page provides general information only and is not legal advice.
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