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The law says the statement must be given before the purchaser signs the contract. In practice, your conveyancer or solicitor prepares the Section 32 and your selling agent makes it available to interested buyers during the campaign, including open inspections and before an auction. Electronic signatures are permitted.
What Must a Section 32 Include?
The Act spells out the contents across several sub-sections. In everyday language, here are the key areas your statement needs to cover.
1. Financial Matters and Outgoings
You must disclose mortgages, charges and what is owed or payable in rates, taxes and similar outgoings affecting the land. The Act sets this out in section 32A.
2. Insurance Details and Recent Construction
If the contract shifts the risk of the property to the purchaser before settlement, you must disclose details of the vendor's insurance. You must also disclose required insurance if there is a residence constructed within the preceding six years and the owner-builder insurance provisions apply. That comes from section 32B and links to the Building Act.
3. Land Use and Planning
You need to disclose easements, covenants and similar restrictions, whether registered or not, and any failure to comply with them. If the land is in a bushfire-prone area, that must be stated. If there is no road access, that must be stated. You must also list the applicable planning scheme, responsible authority, zoning and any overlays. This sits in section 32C.
4. Notices and Orders
Buyers must be told about any notices, orders, declarations, reports or recommendations by authorities that directly and currently affect the land, including proposals for compulsory acquisition or matters involving contamination. That is section 32D, and professional guidance stresses how often this is overlooked.
5. Services Not Connected
Your statement must specify which essential services are not connected, such as electricity, gas, water, sewerage and telephone. This sounds simple, yet it trips people up. Courts have taken a strict view where a property had a septic tank but the statement ticked "sewerage connected". The correct disclosure was that sewerage was not connected.
6. Owners Corporation Information
If the property is affected by an owners corporation, you must either include the prescribed information or attach a current owners corporation certificate and supporting documents. Section 32F of the Sale of Land Act references section 151 of the Owners Corporations Act, which requires the certificate and gives the owners corporation ten business days to issue it after receiving an application and fee.
7. Building Permits and Owner-Builder Works
Section 32 requires details of building permits issued within the last seven years and, where owner-builder works apply, the related mandatory insurance and defect report requirements. These owner-builder obligations are a common hotspot and can be easy to get wrong without advice.
What Happens if the Section 32 is Wrong or Missing?
If a vendor supplies false information or fails to provide required information in the Section 32, or fails to give the statement before the purchaser signs, the purchaser may be able to rescind the contract. That remedy is set out in section 32K of the Sale of Land Act.
On top of the Section 32 rules, Victoria has separate material fact laws. Since 1 March 2020, vendors and their agents must not knowingly conceal a material fact about a property. Consumer Affairs Victoria publishes guidelines that explain what a material fact is and how to handle enquiries about them.
Cooling Off and Auctions, in a Nutshell
In a private sale of a residential property or a small rural property, buyers generally have a cooling-off period of three clear business days from the date they sign the contract. If they cool off, the seller keeps $100 or 0.2 per cent of the purchase price, whichever is greater. There are specific exceptions, including sales at or near auctions and certain other circumstances.
How a Good Section 32 is Put Together in Melbourne
Here is how the process usually runs from a seller's perspective.
Engage your representative early. A solicitor or licensed conveyancer will compile the statement, order the right searches and certificates, and identify any issues long before the first open. Consumer Affairs confirms that both legal practitioners and conveyancers can prepare and review the Section 32.
Order the core searches and certificates. These typically include a title search and plan of subdivision, a planning certificate, a land information certificate for rates, a water authority certificate, information about any mortgages or charges, and if applicable, an owners corporation certificate. If you have done any building work in the last seven years, your practitioner will check for permits and, if you are an owner-builder, the required insurance and defect report.
Check services and access carefully. Walk through what is and is not connected. If the property uses a septic tank or has bottled gas, the statement needs to say the mains service is not connected. A quick assumption can create real problems later.
If there is an owners corporation, allow time. Owners corporation certificates come from the manager or the owners corporation itself and can take up to ten business days to arrive. If the owners corporation is inactive, the statement must say so.
Provide the due diligence checklist at opens. Sellers or their agents must have Consumer Affairs Victoria's due diligence checklist available to prospective buyers at open for inspections. It helps buyers flag issues like bushfire risk, flood risk or recent renovations.
Common Traps We See Across Melbourne
- Owner builder blind spots. If you undertook works yourself, even a few years back, do not assume they are outside the rules. The owner-builder insurance and defect report obligations are technical and easy to miss.
- Services marked the wrong way. Ticking "sewerage connected" when the property is on a septic tank has led to rescissions and cost orders. Get the facts right.
- Owners corporation omissions. Strata properties need the current certificate and attachments, or the required prescribed information. Inactive schemes need to be identified clearly.
- Notices left out. Planning or building notices and proposals for acquisition must be disclosed if they directly and currently affect the land.
Tips for Melbourne Buyers Reading a Section 32
Scan the title and plan first. Who owns it, what are the boundaries, and do easements cut across where you plan to renovate.
Look for overlays and zoning. Bushfire overlays, heritage overlays and flood overlays can influence insurance costs and renovation approvals. Your planning certificate and overlays are listed in the statement.
Check outgoings and arrears. See what council rates, water charges and land tax apply. If you are buying an investment, even modest differences in outgoings can change your sums.
Owners corporation details matter. Read the certificate, minutes and rules. Look for special levies, looming maintenance, insurance details and any disputes.
Ask questions about recent works. If there were renovations in the last seven years, make sure permits and, where relevant, owner-builder insurance exist.
Auctions, Private Sales and Timing
At auction, bidders usually review the Section 32 and contract in the week leading up to the day. There is no cooling off for properties sold at auction, or within three clear business days before or after an auction, so that pre-auction review is vital. In private sales, buyers still need a prompt review, but the three business day cooling off can provide a little breathing space.
How Melbourne Sellers Can Set Themselves Up for a Smooth Campaign
Start early. Order searches before your first photo day. That way your agent can hand a complete Section 32 to every serious buyer and avoid delays.
Be frank about quirks. Is access via a carriageway easement, is the garage partly on common property, or is there a long-standing encroachment. Put it on the table in the statement and your sale will be cleaner.
Keep everything consistent. The Section 32, the contract and the marketing should tell the same story. Avoid surprises between what the agent says on Saturday and what the documents say on Monday.
Lean on professionals. Your conveyancer or solicitor does this all day and will spot issues before a buyer does. Consumer Affairs Victoria recognises that both can prepare or review your documents, so choose someone you trust.
Frequently Asked Questions
Is the Section 32 the same as the contract? No. The Section 32 is the seller's disclosure statement. The contract is the agreement to buy and sell.
Can a buyer walk away if the Section 32 is wrong? Possibly. If required information is missing or false, section 32K allows rescission in the right circumstances. Get advice quickly if you are concerned.
Do I need one for vacant land or units? Yes. The disclosure rules apply broadly to land sales, including vacant blocks and strata properties. Strata sales also bring in owners corporation disclosure.
Do I have to give buyers the due diligence checklist at opens? Yes. Sellers or their agents must have the Consumer Affairs due diligence checklist available at open for inspections.
The Bottom Line
The Section 32 is not red tape for the sake of it. It is a clear, practical way to put all the important facts on the table so both sides can make confident decisions. In Melbourne's fast-moving market, that transparency helps your campaign run smoothly and protects you from disputes.
Talk to a Local Expert
If you are selling, we can prepare your Section 32 properly the first time. If you are buying, we can review the statement and contract before you sign so you know exactly what you are agreeing to. For clear advice tailored to Melbourne properties, contact Pearson Chambers Conveyancing for more details and a free Section 32 contract review.
Phone: 03 9969 2405
Email: contact@pearsonchambers.com.au