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A Saturday inspection in Melbourne can feel like a sprint. You squeeze through a weatherboard in Brunswick East with a coffee in hand, then you’re back on the footpath checking the tram times and wondering if you should move before someone else does.
That’s often when people sign too fast, then discover the paperwork was quietly waving a red flag all along.
We regularly see issues like a drainage easement sitting right where you planned a deck, an owners corporation repair bill brewing under the surface, or a planning control that makes the ‘easy renovation’ a lot less easy. Once legal fees, delays, and unexpected rectification work start stacking up, the dollars can climb quickly.
What a Section 32 is (and what it isn’t)
In Victoria, the seller must give you a Section 32 vendor statement before you sign the contract. It’s a disclosure document about the land and the title, plus certain matters that can affect value, use, or enjoyment.
A quick reality check:
It’s not a building report. It won’t tell you if there’s rising damp or failing waterproofing.
It doesn’t approve your plans. It may flag planning controls or notices, yet council decisions still depend on the details of an application.
So the goal is not to ‘understand every word’. The goal is to spot anything that changes what you’re buying, what you can do with it, or what you may have to pay for.
Red flags that deserve a pause
You don’t need to be a lawyer to pick up on the common trouble spots. You just need to know where to look and when to get help.
Missing pages, missing attachments, or paperwork that looks old
Gaps matter. A statement that refers to an annexure that never appears, or a certificate that’s not attached, can mean anything from a simple mistake to a serious disclosure problem.
Also check the dates. People often ask about the Section 32 validity period because parts of a vendor statement can age quickly. Rates and owners corporation figures change, and planning information can shift over time. If documents look months old, ask for updated versions before you commit.
A vendor statement that isn’t properly signed
It’s basic, yet worth checking. The vendor statement should be signed by the vendor (or properly signed on their behalf) before you sign the contract. If you’re being asked to sign and you haven’t been given a signed vendor statement, stop and get advice straight away.
Easements and restrictions you can’t picture on the ground
Easements and covenants are classic ‘I wish I’d known’ issues.
An easement might allow a water authority to access pipes under your garden. It might limit where you can build. It might relate to a shared driveway you can’t block with a new fence. In older suburbs with subdivided blocks, they’re common.
If the Section 32 mentions easements, covenants, or other title restrictions, you want two things:
a plan showing where the affected area sits on the land, and
a plain English explanation tied to your plans (extension, carport, second dwelling, even just landscaping).
If you can’t match the words to what you walked through at the inspection, don’t guess.
Planning controls that clash with your plans
A lot of buyers purchase with a ‘next chapter’ in mind: opening up the rear, adding a second storey, or building a studio.
Planning controls can reshape those plans. Heritage overlays, flood related overlays, bushfire related overlays, neighbourhood character rules, and zoning limits can all affect what’s possible and how long it takes.
A single line like ‘heritage overlay’ isn’t a small detail. Treat it as a prompt to check what approvals are likely and what sort of changes tend to be supported in that street.
Notices, orders, and ‘something is going on’ letters
Notices can look technical, so buyers skim them. That’s where road proposals, drainage works, compliance notices, or building orders can hide.
Even if a notice is directed at the current owner, it can still affect you once you own the property. If you see notices, ask: what action is required, by when, and who pays?
Unapproved building work and missing permits
Melbourne homes carry history. A back room that was once a verandah. A deck built ‘years ago’. A garage turned into a bedroom.
If the property has had work done, you want to know if the right approvals were obtained and finalised. Missing permits or missing final inspections can create headaches after settlement, especially if you need to renovate, insure, or sell.
Clues to watch for:
visible extensions or decks with no supporting paperwork
converted garages or bungalows used as living space
structural changes with nothing to back them up
a pool or spa without evidence that safety barriers have been certified
This is also where an inspection earns its keep. Pair your contract review with a building and pest inspection so you’re covering both the documents and the physical condition.
Owner builder work that needs extra checking
Owner builder work can be fine. The risk is when the paper trail isn’t right.
Where the seller has done certain building work as an owner builder, extra documents may be required, and insurance and reports can matter. If the Section 32 hints at owner builder activity, or the property clearly has newer work that looks DIY, this is a strong cue to get advice before you sign.
Owners corporation issues that can blow out budgets
For units and townhouses, the owners corporation documents can be where the real story sits. A tidy foyer doesn’t tell you if there’s water ingress, a looming lift replacement, or a dispute about common property.
Red flags include:
talk of special levies or extra contributions
legal disputes or building defect claims
low funds paired with big upcoming works
unclear boundaries for storage cages or car parks
Don’t assume a marketing plan matches what’s on title, especially in newer developments close to the CBD and inner south.
Outgoings and settlement adjustments
A Section 32 usually lists things like council rates, water charges, and owners corporation fees. Most get adjusted at settlement, so you only pay your share from settlement day onward. The catch is when the figures are out of date, incomplete, or don’t match the property you inspected. A planned owners corporation levy, an unpaid charge, or a surprise services cost can all become negotiation points, but only if you spot them before you sign.
What counts as ‘must disclose’ information?
Buyers often ask, ‘If the agent told me at the inspection, is that enough?’ Verbal statements can be misunderstood or forgotten. What protects you is what’s properly disclosed in writing, and what the law expects to be revealed.
Alongside the vendor statement, there are material facts disclosure requirements that can apply to certain matters a buyer would reasonably want to know. If something feels like a big deal and it’s not clearly dealt with in the contract pack, treat that as a red flag.
Can you walk away once you’ve spotted a problem?
Sometimes, yes. The trick is knowing which ‘exit’ applies and acting quickly.
Cooling off
For many private sales of residential property, buyers get three clear business days after signing to cool off. There are key exceptions, including auctions and some auction related sales, and there are rules about how notice must be given.
If you’re relying on this, check your cooling off period rights and speak with your conveyancer before you act. Cooling off can come with a financial penalty, and it doesn’t suit every situation.
Ending the contract because the vendor statement is defective
If a vendor statement is missing, not given before you signed, or contains an error or omission that matters, you may have rights to end the contract before settlement.
This can turn on details: what was missing, whether it would have affected a reasonable buyer, and whether you’re still in the same position you would have been in if the disclosure had been made properly. If you think the vendor statement is defective, get advice fast so you take the right step within the required time.
A simple pre sign routine that fits Melbourne buying
Most buyers don’t get weeks to think. You’ve got weekend inspections, a call from the agent, and pressure to decide.
A calm routine helps:
Read the Section 32 once, start to finish, and mark anything unclear.
Match the title plan to what you saw on site. If you can’t map it, flag it.
Check for easements, covenants, planning controls, notices, and owners corporation documents (if relevant).
Make sure the vendor statement is signed and the attachments make sense.
Line up finance checks and an inspection early where you can.
Get a conveyancer to review the contract pack before you sign, not after.
If you’re buying at auction, you’ll usually be signing unconditionally on the day. That means your review needs to happen before the auction, even if it feels early.
Five Melbourne scenarios that catch buyers out
These are the sorts of issues that can change the value of what you’re buying, even though they don’t always look scary at first glance.
The extension dream hits a heritage wall
A buyer plans to extend a terrace. The paperwork flags a heritage control. They assumed it only affected the front façade, yet later learn changes at the rear can still need careful design and approvals.
The ‘normal’ drainage easement takes the best part of the yard
The title shows an easement along the rear boundary. It can restrict where you build a studio, pool, or even deep rooted planting. Maintenance access can also be a factor.
The car space isn’t truly yours
A plan in the contract pack shows two spaces. On title, one is a separate lot or is described differently from what the buyer expects. Sorting it out after settlement can be slow and expensive.
The owners corporation has a levy brewing
Meeting minutes mention repeated water ingress and quotes being obtained. Current fees look fine, yet a levy could be on the way. Knowing this before you sign gives you options.
The paperwork doesn’t match current reality
A vendor statement prepared months earlier may not reflect updated owners corporation fees, new notices, or changed planning information. That doesn’t stop a sale, yet it does call for updated documents.
Speak with Pearson Chambers Conveyancing before you sign
If you’re looking at a property in Melbourne or wider Victoria and you want a calm, plain English read of the contract pack, we can help. Pearson Chambers Conveyancing offers a complimentary Section 32 contract review so you can spot red flags early and make a decision with your eyes open.
Email: contact@pearsonchambers.com.au
This information is general only and isn’t legal advice. For guidance tailored to your property and your contract, get in touch with our team.