Section 32: the document every buyer should read twice.

Every residential property transaction in Victoria turns on a small set of documents. The vendor statement — universally known as the Section 32 — is the most consequential of them, and it must be given to a purchaser before they sign the contract of sale.

The Section 32 statement is required by section 32 of the Sale of Land Act 1962 (Vic). It is the seller's mandatory pre-contract disclosure — a defined list of matters that materially affect the property being sold. When it is complete, accurate and given before signing, it lets a purchaser buy with their eyes open. When something material is missing or misleading, it can give a purchaser a statutory right to rescind the contract.

This guide explains, in plain English:

• what a Section 32 statement is and why it is also called a vendor's statement;
• when it must be given and who signs it;
• the specific matters the Sale of Land Act requires it to cover;
• what a Section 32 does not usually disclose;
• when a purchaser may have a right to rescind the contract for a defective statement; and
• the practical steps buyers and sellers should take before signing.

What is a Section 32 statement?

A Section 32 statement is a written statement given by the seller (the vendor) to the purchaser before the contract of sale is signed. It is called the vendor's statement because it is the vendor's disclosure — the vendor is legally responsible for its accuracy and completeness.

It is not the same thing as the contract of sale, although the two documents are almost always provided and signed together. The contract sets out the commercial terms — price, deposit, settlement date, special conditions. The Section 32 sets out the legal characteristics of the land itself.

The vendor must sign the statement before the purchaser signs it. Once the purchaser has signed the statement (usually as part of signing the contract), the disclosure is fixed at that point. Later corrections do not retrospectively cure an omission that existed at the moment the purchaser signed.

When must the Section 32 be given?

Before the purchaser signs the contract of sale. This is not optional. The purchaser is entitled to receive the statement, and to have a genuine opportunity to review it, before becoming contractually bound.

In practice this means the statement should be provided at inspection, on request, and always in advance of any auction. A purchaser bidding at auction should read the Section 32 well before the auction day — remember that an auction contract is unconditional and has no cooling-off period.

What the Section 32 must contain

Section 32 of the Sale of Land Act sets out a defined list. The statement must disclose:

Title particulars, encumbrances and restrictions

A copy of the register search statement (the title) and the plan of subdivision, along with any registered mortgages, covenants, easements, caveats, section 173 agreements, restrictions on use and other interests affecting the land. Unregistered easements that the vendor is aware of must also be disclosed.

The buyer should cross-check the plan of subdivision against what they walked through. Fences on the ground do not always follow the surveyed boundary. Easements — often for sewer, drainage, water or gas — may sit under a slab, a driveway or the very footprint of a proposed extension.

Registered proprietors and mortgages

The persons registered as owners on title and any mortgages that will need to be discharged at settlement. If there is more than one registered proprietor, every proprietor should sign the statement and the contract. Discharge of the existing mortgage is a standard settlement mechanic; the buyer's conveyancer will confirm it is arranged.

Planning information and zoning

Details of the planning scheme applying to the land, including the name of the responsible authority, the zone and any overlays. Common overlays include heritage, bushfire, environmental significance, design and development, and flooding. Each of these can materially restrict the use, development and insurance of the property.

The statement is not required to set out the full content of the planning scheme. A prudent buyer will obtain a planning property report and, where a development is planned, seek separate planning advice before signing.

Road access

A statement of whether the property is affected by any road access limitations. Access to the property should be by a road within the meaning of the Sale of Land Act. Landlocked or private-road parcels warrant close attention.

Services connected to the property

A statement of which of the following services are connected: electricity, gas, water, sewerage and telephone. The vendor is not warranting future performance or capacity; the buyer should still verify that each connected service is actually operational and adequate for their intended use.

Outgoings — rates, land tax and owners corporation fees

Council rates, water and sewerage rates, land tax and any other charges affecting the land, along with the periods to which they relate. For apartments and units in owners corporations, owners corporation fees, special levies and information from the owners corporation certificate must be disclosed.

The buyer should look for signalled special levies for capital works — lifts, cladding rectification, waterproofing, façade — because these can be substantial.

Notices, orders, declarations and proposals

Any notices, orders, declarations or approved proposals affecting the land of which the vendor is aware, or ought reasonably to be aware. This includes municipal building or planning notices, VBA notices, works orders, road-widening proposals, compulsory acquisitions and similar. It does not require disclosure of every general council policy that is not directed at the land itself.

Building permits and owner-builder work

Particulars of any building permit issued in the seven years preceding the sale under the Building Act 1993. If the vendor is an owner-builder and residential building work of a prescribed value was carried out in the last six years and six months, a report from a building practitioner and, where applicable, domestic building insurance, must be provided.

Unpermitted building work is a recurring source of dispute. If a buyer suspects renovations that appear to lack a permit — a converted garage, a raised deck, a rear extension — they should ask directly and, if necessary, obtain their own building surveyor's report.

Bushfire and other planning matters

If the property is in a designated bushfire-prone area or subject to a Bushfire Management Overlay, this must be disclosed. The vendor is not required to warrant the fire-safety adequacy of the dwelling itself.

Owners corporations

For properties affected by an owners corporation, the vendor must attach an owners corporation certificate under section 151 of the Owners Corporations Act 2006, together with the accompanying prescribed documents — minutes, financial statements, insurance certificate, rules, register and record of maintenance plans. Where there are multiple owners corporations (unlimited, limited, or several affecting different lots), each must be disclosed.

Small subdivisions of two lots may be exempt from having an owners corporation, and this too is disclosable if applicable.

Leases and tenancies

If the property is sold subject to a lease, particulars of the lease and a copy must be provided. Vacant-possession contracts should be checked against actual occupancy at settlement.

Statutory warnings

The Sale of Land Act requires a prescribed statutory warning about due diligence and the buyer's separate right to obtain a due-diligence checklist published by Consumer Affairs Victoria. The warning is part of the statement; buyers should read it, not skip it.

A vendor statement is not a brochure. It is the legal mirror of the property — and like all mirrors, what's missing tells you as much as what's there.

What the Section 32 does not usually disclose

A Section 32 is a legal disclosure about the land, not a condition report. It does not usually tell the buyer about:

• the physical condition of the dwelling, roof, plumbing, wiring or drainage;
• the presence of pests such as termites;
• structural or waterproofing defects that are not the subject of a notice or order;
• neighbourhood issues — noise, traffic, disputes with neighbours;
• planned developments on neighbouring or nearby land;
• the market value of the property or its likely resale value;
• whether the property is suitable for the buyer's intended finance; and
• matters of general marketability such as school zones and public transport.

Because of this, a Section 32 is a starting point for buyer due diligence — never the whole of it. A prudent buyer supplements the statement with a pre-purchase building and pest inspection, planning enquiries, insurance and finance confirmation, and legal review of the contract as a whole.

Where vendors quietly get it wrong

Most omissions are not deliberate. The recurring problem areas are:

• building work carried out without a permit, or where the permit is not disclosed;
• owners corporation special levies that have been resolved but not yet paid;
• easements shifted by later subdivision but not updated on the current title search;
• outdated searches provided months before signing;
• changes occurring between the date the statement was prepared and the date it is given to the buyer; and
• shared services (drainage, driveway easements, common walls) not properly disclosed on the plan.

A careful read picks up the signals — and a careful conveyancer asks the right follow-up questions before the buyer signs.

Purchaser rescission rights

Where a Section 32 fails to comply with the Act, section 32K of the Sale of Land Act may give the purchaser a right to rescind the contract before accepting title. The right is not automatic and is not open-ended.

In broad terms, the purchaser must generally show that:

• the vendor supplied a statement that did not comply with section 32 in a material particular;
• the vendor was not acting honestly and reasonably, and ought reasonably to have been aware of the true position; and
• the purchaser is substantially in as good a position as if all the provisions had been complied with — or, framed the other way, the purchaser has been materially prejudiced by the failure.

The right is fact-specific. Not every omission gives rise to a right to rescind. Trivial or immaterial errors, and errors known to the purchaser before signing, will not usually justify rescission. Rescission rights are commonly asserted before settlement; once title is accepted the practical difficulty of unwinding the transaction increases substantially.

A buyer who suspects a material omission should not simply refuse to settle. They should obtain urgent legal advice — the notice, the reasons and the timing all matter.

Reviewing the contract together with the statement

The Section 32 and the contract of sale are two documents but one review. The contract's special conditions may allocate risk differently from the standard general conditions — for example on adjustments, foreign resident capital gains withholding, GST, deposit release, sunset dates and default interest. A lawyer or conveyancer should read the two together and explain the combined effect before signing.

Auction review

For auction properties, the vendor's statement will be available for inspection at the property during a set period before the auction and will be provided on request. A buyer intending to bid should obtain and review the Section 32 well ahead of the auction — bidding without review is one of the most common causes of buyer's remorse.

Private sale review

For private sales, the buyer will typically receive the Section 32 with the contract. A three clear business day cooling-off period ordinarily applies. Cooling-off is a limited remedy — it costs the buyer 0.2 per cent of the purchase price or $100, whichever is greater — and it does not apply where the sale falls within an auction exclusion or several other statutory carve-outs.

Electronic signing

Section 32 statements and contracts of sale are routinely signed electronically. Electronic signing does not lower the legal standard: the vendor must still sign before the purchaser, the statement must still be complete at the time of signing, and the purchaser must still be given a genuine opportunity to review before signing.

Common misconceptions

• "The Section 32 says everything is fine." It says what the Act requires. Physical condition is not usually part of that.
• "If anything is wrong, I can rescind." Rescission is available only in defined circumstances and often only before settlement.
• "The estate agent has told me it's all in order." The estate agent is not the vendor's lawyer. The statement — and only the statement — is what the vendor has legally disclosed.
• "I can add conditions later." Once you sign, you are bound by the contract as it stands. Amendments require the vendor's agreement.

Buyer's checklist

• Obtain the Section 32 and full contract at inspection or on request — and always before an auction.
• Read the title, plan of subdivision and any registered restrictions.
• Cross-check the plan against what you saw at inspection — especially fences, driveways and easements.
• Read the planning information and consider a planning property report for any development plans.
• For apartments and units, read the owners corporation certificate, financials and minutes.
• Check disclosed building permits against what has been built.
• Note the age of searches — a Section 32 relying on 6-month-old certificates should be updated.
• Have a lawyer or conveyancer review the Section 32 and contract together before you sign.

Seller's checklist

• Instruct your conveyancer or lawyer early to prepare the statement.
• Provide the most recent rates, land tax and owners corporation notices.
• Disclose all building permits from the last seven years and any owner-builder work in the last six years and six months.
• Update the statement if anything material changes before signing.
• Sign the statement first, before giving it to the buyer.
• Retain a signed copy of the statement given to each buyer.

How we can assist

A Section 32 that is prepared or reviewed by a property lawyer is one of the cheapest pieces of legal work you can commission and one of the most valuable. Our lawyers regularly prepare vendor statements, review Section 32 statements for prospective purchasers, and advise on rescission and disclosure disputes.

The rules discussed in this article are current as at 16 July 2026. Whether particular disclosures are required, and whether a right to rescind exists in a particular case, depends on the facts. This article is general information, not legal advice on a specific transaction.