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The person offering you a home hasn't yet completed their own purchase of that same property. Before you sign, you need to understand their right to sell and what happens to your purchase if theirs is delayed or falls through.
The short answer: A seller's name missing from the title doesn't, by itself, decide whether the resale can proceed. In Victoria, a seller who isn't the registered proprietor or fee-simple owner (the freehold owner) must attach evidence of their right or power to sell to the Section 32 statement. Have that evidence, the earlier purchase documents and your proposed resale contract reviewed together before committing.
Why doesn't the seller's name match the title?
Your seller is buying the home from its current owner while offering a separate sale to you. They are sometimes called an 'intermediate vendor': someone between the current owner and the next buyer in a chain of sales of the same property.
Suppose a person has signed to buy a townhouse, then offers it to you before their purchase settles. The current owner's name may still appear on the title. The documents need to explain how the proposed seller's rights connect to that owner and property.
An earlier signed contract is a starting point. Its existence alone doesn't establish that all conditions have been met, that necessary permissions are in place or that the seller can complete your purchase.
What should the Section 32 show?
The Section 32 is the seller's disclosure statement about the property. You should receive it, signed by the seller, before you sign the sale contract.
For land under Victoria's Torrens title system, it must attach the Register Search Statement and the referenced diagram identifying the land and its location. The registered proprietor is the person or company recorded on the register as the owner.
Section 32I(c) of the Sale of Land Act 1962 also requires evidence of the seller's right or power to sell when they aren't the registered proprietor or fee-simple owner. This is a disclosure requirement; it doesn't give blanket permission for any proposed resale.
Your conveyancer can compare the names and rights across the title, that evidence and the contract offered to you. A name mismatch needs investigation, but doesn't establish a cancellation right on its own.
Four checks on the seller's earlier purchase
The key question is what still needs to happen for this seller to complete your purchase. Depending on the transaction and documents, your conveyancer may need to investigate:
- What was agreed? Review the complete signed earlier contract and any later variations, rather than relying on a cover page or unsigned offer.
- Are conditions still outstanding? Check which conditions remain unresolved and what evidence shows that others have been satisfied or validly waived.
- Is any consent needed? Check whether the proposed resale or transfer arrangement requires permission and, if so, whether there is evidence that it has been obtained.
- What is the current settlement position? Check the earlier settlement date and any agreed extension, notice or dispute that could affect completion.
These are practical review questions, not a statutory entitlement to every document or a universal test for proceeding. If only part of the evidence is available, your conveyancer needs to assess what remains unresolved and how it affects your decision.
What if the seller's purchase is delayed or fails?
Your position needs to be assessed under your own resale contract. Matching settlement dates don't explain what happens if the seller's earlier purchase can't proceed as planned.
Before signing, ask what your proposed contract says about extensions, when the sale can end and what happens to your deposit if the seller can't complete. The answers depend on the actual terms; none of these outcomes should be assumed from the earlier contract.
In a private sale, conditions and settlement terms can be negotiated, but the seller may reject them. Resolve the protections you need before committing and have any agreed terms properly recorded in your contract.
If you've already signed, send your contract, Section 32 and messages about the earlier purchase for prompt review. Keep your existing deadlines in view. Delay in the seller's purchase doesn't automatically extend your dates, entitle you to a refund or let you walk away.
About the Pearson Chambers Conveyancing team
Pearson Chambers Conveyancing assists with residential purchases, sales and title transfers in Melbourne and across Victoria. For a purchase involving an intermediate seller, our conveyancing work includes reviewing the contract, Section 32 and title evidence and coordinating the steps needed for settlement.
Sources we consulted
- Sale of Land Act 1962, current authorised version, including sections 32I and 32K
- Consumer Affairs Victoria: seller disclosure and conveyancing documents
- Consumer Affairs Victoria: buying property by private sale
- Consumer Affairs Victoria: the role of a conveyancer or legal practitioner
Have the resale contract checked before you sign
If your seller hasn't completed their own purchase of the home, send the proposed contract and Section 32 to Pearson Chambers Conveyancing for a complimentary contract review. Include any earlier purchase documents and messages you've received. If you've already signed, contact us promptly so we can review the contract, deadlines and next steps.
Email contact@pearsonchambers.com.au.
General information only, current as at the date of publication. Victorian conveyancing rules and legislation change frequently. Please contact the Pearson Chambers Conveyancing team for advice on your specific contract.