Section 32 vendor statement Victoria: what buyers and sellers need to know

A Section 32 vendor statement is Victoria's mandatory pre-contract disclosure about land being sold. The vendor must give the purchaser a vendor-signed statement containing the required information and documents before the purchaser signs the contract of sale.

The name comes from section 32 and Division 2 of Part II of the Sale of Land Act 1962 (Vic). The statement is not a guarantee that the property is suitable or defect-free. It gives a purchaser prescribed legal, financial and property information so the contract and the land can be investigated before the purchaser becomes bound.

This guide explains:

• when the statement must be given and who must sign it;
• the disclosures and documents required by sections 32A to 32I;
• what buyers should investigate beyond the statement;
• how section 32K rescission rights and the vendor's court defence operate; and
• practical checks for buyers and sellers before a contract is signed.

What is a Section 32 vendor statement?

It is a written statement from the vendor to the purchaser. It is separate from the contract of sale, although the documents are commonly supplied together. The contract records the bargain, including price, deposit, settlement and special conditions. The Section 32 supplies the disclosures and attachments prescribed by the Act.

Under section 32, the vendor must sign the statement and give it to the purchaser before the purchaser signs the contract. Electronic signature is permitted. Where there are multiple proprietors, the execution arrangements must reflect proper agency or other authority; if the vendor is not the registered proprietor, evidence of the vendor's right or power to sell must be attached.

The statement must be accurate and complete when it is given. If a search, certificate, notice or circumstance changes before the purchaser signs, the disclosure should be reviewed and updated as necessary rather than treated as current merely because it was correct when first prepared.

When must it be given?

The purchaser must receive the vendor-signed statement before signing the contract. A buyer should ask for the complete contract and Section 32 early enough to obtain legal advice, inspect the attachments and raise enquiries before making an offer or bidding.

For an auction purchase, the statutory cooling-off right does not apply. It is also excluded for a private sale made within three clear business days before or after the day on which the property was publicly offered for sale by auction, and in other circumstances specified by section 31. Buyers should have the documents reviewed and negotiate any finance, inspection or other conditions before bidding or signing; conditions cannot be assumed after the sale.

Financial matters under section 32A

Section 32A requires particulars of a registered or unregistered mortgage over the land only if it will not be discharged before the purchaser becomes entitled to possession or to rents and profits. A current title search may separately show a registered mortgage that is intended to be discharged at settlement; its appearance on title does not by itself mean the contract leaves the purchaser subject to it.

The statement must also address statutory charges over the land, rates, taxes, charges and similar outgoings in the manner required by the Act. It must state whether the land is commercial and industrial property tax reform scheme land, give its most recently allocated AVPCC, and, if it is scheme land, state its entry date. Where the sale is a terms contract of the kind described in section 32A(d), the Schedule 2 financial information is required.

Insurance under section 32B

Insurance disclosure is required in particular cases. If the contract does not leave the land at the vendor's risk until the purchaser becomes entitled to possession or rents and profits, particulars of the vendor's relevant damage or destruction insurance must be given. If there is a residence and section 137B of the Building Act 1993 applies, particulars of the applicable statutory insurance cover must also be disclosed.

Land use, restrictions, bushfire status and road access under section 32C

The statement must describe easements, covenants and similar restrictions affecting the land, whether registered or unregistered, and any existing failure to comply with them. A buyer should compare the title diagram and restrictions with the property inspected. For example, a drainage easement shown along a boundary may constrain the location or design of a proposed extension even though it is not obvious on the ground.

It must state if the land is in a designated bushfire-prone area. If there is no access to the property by road, section 32C(c) requires a statement that there is no such access; it does not require a general statement about every form of access limitation. For land under a planning scheme, the statement identifies the scheme, responsible authority, zoning and planning overlays. Buyers with renovation or development plans should investigate the effect of those controls separately.

Notices and proposals under section 32D

Section 32D covers particulars of a notice, order, declaration, report or recommendation of a public authority or government department, or an approved proposal, that directly and currently affects the land and of which the vendor might reasonably be expected to have knowledge. It also requires the prescribed information about applicable agricultural disease or chemical-contamination notices, plans, reports or orders, and particulars of any notice of intention to acquire under the Land Acquisition and Compensation Act 1986.

This is property-specific disclosure. It does not mean every general policy, proposed project in the wider area or nearby development application will appear in the statement. Buyers should make their own council, planning and neighbourhood enquiries where those matters are important.

Building permits and owner-builder work

Section 32E has a specific rule: if there is a residence on the land, the statement must contain particulars of any building permit issued under the Building Act in the preceding seven years in relation to a building on the land. It is not a general seven-year disclosure rule for vacant land or every kind of building work.

Owner-builder sale requirements arise separately under section 137B of the Building Act. Where that provision applies, an owner-builder selling within the prescribed period generally needs a defects inspection report from a prescribed building practitioner obtained no more than six months before contract, must provide the report to the buyer, comply with the statutory insurance scheme where applicable, provide the required notice of cover, and include the statutory warranties in a home-sale contract. For domestic building work, the prescribed period is generally six years and six months from the completion date, with different statutory endpoints where no occupancy permit or certificate of final inspection was issued or required.

The current statutory insurance and owner-builder consent thresholds should be checked for the particular work and contract; as at this review, the Building Act's default threshold for an insurable domestic building contract and owner-builder consent is more than $20,000 unless a higher amount is prescribed. These Building Act obligations should not be described as if they are all created by section 32E.

Owners corporations under section 32F

If land is affected by an active owners corporation, the vendor must either specify in the Section 32 the information prescribed for section 151(4)(a) of the Owners Corporations Act 2006 or attach a current owners corporation certificate. The specified accompanying documents required by section 32F must also be attached. If the owners corporation is inactive within the statutory test, the statement may instead specify that it is inactive.

A two-lot subdivision may still have an owners corporation and must not be treated as automatically exempt from disclosure. Buyers should identify every owners corporation affecting the lot and read the supplied information and documents, including financial, insurance, rules, maintenance and levy material that accompanies the disclosure. They should also consider inspecting the current owners corporation register because circumstances can change after a certificate is issued.

GAIC under section 32G

For land potentially affected by a growth areas infrastructure contribution, the statement must make the declarations required by section 32G and attach the applicable GAIC certificates or notices. This can matter for growth-area and development land and should be checked against the intended transaction and use.

Services not connected under section 32H

Section 32H requires the statement to specify if electricity, gas, water, sewerage or telephone services are not connected to the land. It is not a warranty that a service not identified as disconnected is operating, has sufficient capacity or suits the purchaser's plans. Buyers should verify availability, operation, capacity and connection or upgrade costs with the relevant provider where important.

Title and subdivision documents under section 32I

For land under the Transfer of Land Act 1958, the statement must attach a copy of the Register Search Statement and the document, or relevant part, identified as the diagram location that shows the land and its location. Other-title land requires the prescribed evidence of title. If the vendor is not the registered proprietor or fee-simple owner, evidence of the vendor's right or power to sell is required.

Further documents apply to subdivisions. Depending on the circumstances, section 32I requires the certified plan or latest version of an unregistered plan, information for staged subdivisions, and plans for a proposed further subdivision. Off-the-plan and other unregistered-plan contracts also attract separate statutory rules, so the Section 32 and the contract must be read together.

The due diligence checklist is a separate duty

The Consumer Affairs Victoria due diligence checklist is not a prescribed warning or mandatory attachment forming part of the Section 32. Section 33B creates a separate availability duty for vacant residential land or land on which there is a residence. From the time the land is offered for sale, the vendor—or the licensed estate agent acting for the vendor—must make the approved checklist available to prospective purchasers in the manner required by that section, including at inspections and through relevant sale websites.

The Section 32 is a prescribed disclosure, not a substitute for investigating the property, the contract and the buyer's intended use.

What a Section 32 does not usually tell a buyer

The statement is not a building, pest, valuation or finance report. Unless a matter falls within a required disclosure, it may not reveal:

• the physical condition of the dwelling, roof, plumbing, wiring or drainage;
• termites, structural defects or waterproofing problems not reflected in a required notice or report;
• noise, traffic or neighbour disputes;
• all development proposals affecting nearby land;
• market value, resale prospects or finance suitability; or
• whether services actually operate or have enough capacity for the buyer's intended use.

A buyer should combine legal review with appropriate building and pest inspections, finance and insurance confirmation, planning enquiries and any specialist investigation prompted by the property or proposed use. Statements by an agent or vendor can also have legal consequences depending on their content and context; they should be recorded and raised with the buyer's lawyer rather than treated as irrelevant or as a substitute for the written disclosure.

Common disclosure problems

• a required permit, notice, order, restriction or unregistered interest is omitted;
• the owners corporation disclosure does not address every corporation affecting the lot or does not use the active/inactive alternative correctly;
• the plan or diagram does not match the area the buyer believes is included, such as a car space, storage lot or accessway;
• an attachment or search no longer reflects the position when the statement is given;
• a service that is not connected is not identified; or
• the vendor's execution or evidence of authority to sell is incomplete.

There is no universal six-month freshness rule for the whole statement. Age is one warning sign, not the legal test. The question is whether the required information and documents are accurate, complete and appropriate when the vendor-signed statement is given to the purchaser.

Section 32K rescission rights

Section 32K applies where the vendor supplies false information in the statement or required attachments, omits information that the Division requires, or fails to give the purchaser a vendor-signed Section 32 before the purchaser signs the contract. Depending on the statutory pathway and the facts, the purchaser may rescind before the purchaser both accepts title and becomes entitled to possession or to the receipt of rents and profits.

Section 32K(4) is a vendor defence, not an additional burden that the purchaser must first prove. Rescission is unavailable only if a court is satisfied of both limbs: the vendor acted honestly and reasonably and ought fairly to be excused for the contravention; and the purchaser is substantially in as good a position as if all relevant provisions had been complied with.

Whether a contravention supports rescission, whether the contract was entered into on the basis required by section 32K(2), whether the statutory endpoint has been reached and whether the defence can be made out are fact-sensitive questions. A purchaser who identifies a possible defect should obtain prompt legal advice before taking a step such as affirming the contract, accepting title, taking possession or refusing to settle.

Review the statement and contract together

The contract may allocate risks not answered by the Section 32, including finance, inspections, GST, adjustments, deposit release, default, settlement, vacant possession, planning outcomes and off-the-plan changes. Terms contracts and sales under unregistered plans have additional statutory rules. A buyer or seller should have the complete transaction documents reviewed together rather than treating the vendor statement as a standalone approval of the property.

Auction and private-sale review

For an auction, obtain legal review early and negotiate any required changes or conditions before bidding. There is no statutory cooling-off right for a purchase at a publicly advertised auction. The statutory exclusion also extends to certain sales within three clear business days before or after the auction day. An auction contract may still contain negotiated conditions, but a buyer should not assume finance, inspection or other protections will be added after the hammer falls.

For an eligible private sale, section 31 generally gives three clear business days to cool off. It does not apply to every property or purchaser, and exclusions include auction-related sales, certain commercial or industrial land, farms over 20 hectares, and other circumstances listed in the Act. The statutory termination amount is $100 or 0.2 per cent of the purchase price, whichever is greater. Cooling off is not a replacement for review before signing.

Buyer's checklist

• Obtain the complete Section 32 and contract before signing or bidding.
• Confirm the vendor has signed and that any agent or non-proprietor has proper authority or evidence of the right to sell.
• Read the Register Search Statement, diagram-location document, subdivision plans and all restrictions.
• Compare title boundaries, lots, car spaces, storage and easements with the property inspected.
• Check planning controls, bushfire status, road access, notices, permits, outgoings and tax-reform information.
• For owners corporation land, identify every corporation and review the current certificate or prescribed information and accompanying documents.
• Verify whether listed services are connected, working and adequate for the intended use.
• Ask whether searches, certificates or circumstances have changed since preparation.
• Obtain building, pest, finance, insurance and specialist advice as the property requires.
• Have a lawyer or conveyancer review the Section 32 and contract together before becoming bound.

Seller's checklist

• Instruct a lawyer or conveyancer early and provide complete, accurate property information.
• Identify the registered proprietors, execution authority and any evidence needed to show a right or power to sell.
• Supply current title, diagram, planning, rates, tax, water and other relevant source documents.
• Disclose required mortgages, statutory charges, outgoings, tax-reform status, restrictions, notices and permits.
• Address every owners corporation affecting the land using the correct active or inactive disclosure pathway.
• Identify services that are not connected and any applicable GAIC, terms-contract or unregistered-plan information.
• Check separately whether owner-builder report, insurance, notice-of-cover and warranty requirements apply.
• Review and update the statement if facts or source documents change before the purchaser signs.
• Ensure the vendor signs before the statement is given and retain evidence of what was supplied and when.

How we can assist

Our property lawyers prepare vendor statements, review Section 32 statements and contracts for prospective purchasers, and advise on disclosure and rescission issues. The scope and urgency depend on the property and the proposed contract, particularly for auctions, owners corporation land, owner-builder work, terms contracts and unregistered subdivisions.

Current as at 25 September 2026. This guide uses the Sale of Land Act 1962 (Vic), authorised version 174 effective 9 September 2026, and current Consumer Affairs Victoria guidance. Disclosure and rescission outcomes depend on the facts and contract. This is general information, not legal advice for a particular transaction.