What a Planning Permit in Your Section 32 Really Means

We get asked this regularly by Melbourne buyers, especially when the property is in an older suburb where extensions, overlays and past development approvals can make the paperwork feel heavier than expected.

The short answer: A planning permit in your Section 32 usually means council has approved a specific use or development of the land under the Planning and Environment Act 1987 (Vic). The benefit of that permit usually attaches to the land, not just the person who applied for it, although some permits can be written for a named owner or operator. If the permit is still live, its conditions can affect what you can build, change, use or maintain after settlement.

What is a planning permit in a Section 32?

A planning permit is council approval for a particular use or development of land. In Victoria, councils usually act as the responsible authority under the local planning scheme.

You might see a planning permit in a Section 32 because the property has been approved for something beyond ordinary residential use, or because a planning control required consent before works could happen.

Common examples include:

approval to build a second dwelling, townhouse or rear unit
approval for an extension affected by neighbourhood character rules
works in a Heritage Overlay area, such as Carlton, Fitzroy, Brunswick, Northcote or parts of St Kilda
approval for subdivision, either completed or still being worked through
approval for a home business, studio, short stay style use or other non standard use
an old development approval that was never acted on, but may not have fully expired

A planning permit is not the same thing as the planning certificate in the contract pack. The planning certificate usually shows the zoning, planning scheme, responsible authority and overlays. The actual permit should appear as a separate attachment, with its conditions and any endorsed plans.

Does a planning permit transfer when you buy the property?

Usually, yes. A Victorian planning permit generally runs with the land, which means the new owner may get the benefit of the approval and also take on the conditions attached to it.

That can be useful if you want to carry out the approved works. It can also be a risk if the permit comes with conditions you didn’t expect. A buyer might like the idea of a future rear townhouse, then discover the permit requires drainage works, landscaping, amended plans or strict limits on materials.

In our practice, we've seen this come up when a vendor obtained approval for a development, then sold before doing anything with it. The buyer loved the property as a family home and hadn’t budgeted for permit conditions that were still sitting in the contract pack.

Some permits are person specific or use specific, so don’t assume every approval gives you a clean right to do whatever was approved. Read the wording.

What planning permit conditions could affect you after settlement?

Planning permit conditions can affect cost, timing and future use. The real risk is not the word ‘permit’; it is the detail buried underneath it.

Common conditions include:

Commencement and completion dates: The permit may expire if works or use don’t start by a set date, or if works are not completed within the required time.
Endorsed plans: The development may need to follow approved plans exactly, down to materials, setbacks, window screening, fence heights or colours.
Landscaping: Council may require planting, tree protection, replacement trees or ongoing garden upkeep.
Drainage and stormwater: Subdivision or multi dwelling approvals often include stormwater detention or drainage work.
Heritage controls: A permit may require a façade, roof form, verandah, chimney or original materials to be kept.
Use restrictions: A permit for a studio, home business or other use may restrict hours, noise, customer numbers, signage or occupancy.

These conditions don’t disappear just because the keys change hands. If they still affect the land, they can become your problem once you settle.

How long does a planning permit last in Victoria?

A planning permit does not expire just because the property is sold, but it is always subject to time limits. The safest answer is to check the actual expiry wording on the permit itself.

Current Victorian planning guidance points to default expiry periods under the Planning and Environment Act 1987where a permit does not state its own dates. For example, use permits and development permits can have default time limits, while subdivision permits have separate timing rules. Councils can also set different dates in the permit.

For a buyer, the practical checks are simple:

Find the permit issue date.
Check whether the permit states a start date or completion date.
Look for any endorsed plans or amended permits.
Ask whether works have started, been completed or lapsed.
Check whether an extension of time has been granted or requested.

This matters because a live permit can be valuable. A lapsed permit may no longer bind you to complete the approved works, but you also can’t rely on it to build later.

What if the planning permit was not disclosed in the Section 32?

If a current planning permit directly affects the land and was left out of the Section 32, the vendor statement may be defective. That is a serious issue to raise before settlement, not after.

A defective Section 32 can give a buyer rights under the Sale of Land Act 1962 (Vic), including a possible right to rescind under section 32K of the Act. Rescission means ending the contract and seeking to be put back in the position you were in before signing.

The key word is ‘possible’. Not every missing document gives a buyer a safe exit. The timing, the wording of the contract, the type of permit and whether the omission actually affects the buyer all matter.

If you spot a missing permit, don’t wait until the final inspection. Get the contract pack reviewed before settlement deadlines make your options tighter.

How is a planning permit different from a building permit?

A planning permit deals with what the land can be used or developed for. A building permit deals with the technical approval for building work.

The difference matters because they point to different risks.

A planning permit is issued under the Planning and Environment Act 1987 (Vic). It can tell you whether council approved a use, development, subdivision, heritage work or other planning controlled change. Its conditions may still affect the land.

A building permit is issued under the Building Act 1993 (Vic). It relates to building work, such as construction, alteration, demolition or structural changes. In a Victorian Section 32, a vendor must disclose building permits issued in the last seven years where the disclosure rule applies.

Think of it this way: planning asks, ‘Is this use or development allowed here?’ Building asks, ‘Was this work approved to be built this way?’ You want both answers before signing.

What should your conveyancer check before you sign?

Your conveyancer should read the permit, not just tick it off as an attachment. A planning permit can change what you can do with the property after settlement.

Before you sign or bid at auction, your conveyancer should check:

whether the full permit is attached, not just referred to
whether the permit is still live, lapsed or unclear
whether any extension of time has been granted
whether endorsed plans are included
whether the conditions impose cost, works or use limits
whether the permit matches what you saw at inspection
whether the planning certificate shows overlays that make future changes harder
whether your plans for the property fit within the existing approval

This is especially useful for auction buyers. In Melbourne, it’s common to receive the Section 32 late in the week, skim it between inspections, then feel pressure on Saturday morning. A permit with 15 conditions deserves more than a quick scroll on your phone.

What should you ask the agent or vendor?

Ask clear, document based questions. Don’t rely on casual comments like ‘council approved everything’ or ‘you can probably build out the back’.

Useful questions include:

Has the permit been acted on?
Has the permit expired?
Are there endorsed plans?
Have any conditions been satisfied?
Has council issued any notices about the permit?
Are there amended permits or extension decisions?
Does the vendor have correspondence from council?

If the answer is vague, ask for documents. A buyer in Preston looking at a rear unit approval needs more than a verbal promise from the agent that ‘it should be fine’.

Frequently asked questions

What is a planning permit in a Section 32 vendor statement?

A planning permit in a Section 32 is a council issued approval for a specific use or development of the land under the Planning and Environment Act 1987 (Vic). If the permit directly and currently affects the property, it should be disclosed with its conditions so the buyer can understand what may continue after settlement.

Does a planning permit transfer to the new owner when I buy a property in Victoria?

Yes, a planning permit in Victoria usually runs with the land, not with the original applicant. When you buy the property, you may take the benefit of the approval and the burden of any live permit conditions, unless the permit is written in a way that limits who can rely on it.

What happens if a planning permit has already expired before I buy the property?

If a planning permit has expired before you buy, you usually cannot rely on it for future development. You also may not be bound to complete works under that lapsed approval, although you should still check whether any completed works, notices or separate obligations remain.

Can I rescind the contract if a planning permit wasn’t disclosed in the Section 32?

Possibly. If a current planning permit directly affects the land and should have been disclosed, the Section 32 may be defective under the Sale of Land Act 1962 (Vic). A buyer may have rights before settlement, including potential rescission under section 32K, but the answer depends on the contract, the permit and the facts.

What’s the difference between a planning permit and a building permit in a Section 32?

A planning permit deals with approved use or development of land under planning law. A building permit deals with approval for building work under building law. Both can appear in a Section 32, but planning permits are more likely to contain live conditions affecting future use or development.

Does the planning certificate in a Section 32 show active planning permits?

No, not in the way many buyers expect. A planning certificate usually shows the planning scheme, zoning, responsible authority and overlays affecting the land. Individual planning permits should be reviewed separately if they are included in the Section 32 pack.

What planning permit conditions are most common on Melbourne residential properties?

Common Melbourne residential permit conditions include landscaping, drainage, tree protection, heritage controls, endorsed plans, use limits and expiry dates. These conditions are common in inner suburbs with older housing stock, heritage overlays and past subdivision activity.

About the Pearson Chambers Conveyancing team

Pearson Chambers Conveyancing is a Melbourne focused conveyancing team helping buyers review contracts, vendor statements and settlement documents before they commit. The team works with first home buyers daily, from inner north apartments to family homes in the middle ring and new builds in growth corridors. Planning permits in Section 32 statements are part of that day to day work because they can change what a buyer can use, build or afford after settlement.

Sources we consulted

Need a complimentary Section 32 contract review?

If your Section 32 includes a planning permit, don’t guess what it means. Send the contract pack to Pearson Chambers Conveyancing before you sign or bid, and we’ll help you understand the permit, the conditions and the practical risk for your purchase.

For a complimentary Section 32 contract review, contact Pearson Chambers Conveyancing:

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.