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If you have ever stared at a bundle of property documents and wondered 'what on earth am I looking at, you are not alone. In Melbourne, the Section 32 Vendor Statement is one of those things everyone hears about, yet few people feel confident with. If you have typed 'what is a section 32 vendor statement' into a search bar at midnight after an auction campaign, take a breath. This guide will walk you through what it is, why it matters, how to read it, and how to avoid the common mistakes that trip up well meaning sellers and starry eyed buyers.
What is a Section 32 Vendor Statement?
A Section 32 Vendor Statement is a compulsory disclosure document that a seller must give a prospective buyer before the buyer signs the contract of sale in Victoria. It is called a Section 32 because the information it must contain is set out in section 32 of the Sale of Land Act 1962 (Vic). In plain English, the statement pulls together key facts about the property so a buyer can make an informed decision, rather like switching on the lights before you step into a room. If the seller fails to provide it before the buyer signs, or gives false or incomplete information, the buyer may be able to rescind the contract.
Two important takeaways up front. First, the Section 32 is not the contract of sale, it sits alongside it. Second, timing is everything. The buyer must receive and have a chance to review the Section 32 before signing any contract documents, including an auction contract.
What the Section 32 Must Contain
The Act sets out a checklist of disclosures. The exact items vary with the property, however the core categories include:
Title Details and Financial Charges
Mortgages that are not being discharged at settlement, statutory charges, and outgoings such as council rates and water rates. Recent amendments to section 32A also describe how these financial matters must be stated.
Land Use and Planning Information
Zoning, relevant planning overlays, whether the land is in a bushfire prone area, and basic access details where relevant. Consumer Affairs Victoria gives a clear overview of these headline items.
Notices and Proposed Works by Authorities
Any notices, orders, declarations or approved proposals that directly and currently affect the land. For rural property, disclosures can extend to contamination and agricultural chemical notices.
Building Permits
If there is a residence on the land, the statement must list building permits issued in the previous seven years. This helps buyers uncover recent structural works, owner builder activity, and insurance needs.
Owners Corporation Information
For flats and townhouses in Melbourne's inner suburbs and growth corridors, if the land is affected by an owners corporation, the Section 32 must include a current owners corporation certificate and specified attachments, or else state that the owners corporation is inactive where that narrow legal definition is met.
Services Not Connected
The statement must specify any essential services that are not connected, such as electricity, gas, water, sewerage or telephone. This matters for rural fringes and some new estates.
Consumer Affairs Victoria summarises these categories for sellers and highlights that the Section 32 must be accurate and complete, otherwise a buyer might withdraw or take action.
A Quick Melbourne Snapshot
In Melbourne you are likely to see, at minimum, a copy of the title and plan, planning details, rates information, a water information statement, and for apartments a current owners corporation certificate. If the property is in a bushfire prone area at the city's fringes, or sits under a heritage overlay in the inner north or bayside suburbs, those details must be front and centre.
Why It Matters for Buyers
Buying a home is emotional, especially in suburbs where auctions are lively and Saturday inspections blur together. The Section 32 is your calm, factual counterweight. It helps you answer questions that photos do not show: is there an easement where you had imagined a pool, are there owners corporation rules about pets, have there been building works that need warranty insurance, are there planning overlays that could slow your extension plans. The law backs you here. If you were not given a signed Section 32 before you signed the contract, or you were given one containing false or incomplete information, section 32K sets out rescission rights so you can unwind the deal within specific limits.
Why It Matters for Sellers
For vendors, the Section 32 builds trust and reduces risk. A clean, accurate statement smooths your campaign and protects you against disputes. Provide it early, ensure the certificates are current, and keep it updated if anything changes during the campaign. Consumer Affairs Victoria reinforces that inaccuracies can allow a buyer to withdraw or sue, which is the last thing you want after spending on photography, styling, and auction advertising.
There are also specific Victorian rules you should know about when preparing your sale terms. As of 1 January 2024 you cannot pass on windfall gains tax in most circumstances, and for sales under the threshold amount you cannot pass on land tax to a buyer, which can affect how you set your price and contract terms. Speak to your conveyancer about how these rules intersect with your Section 32 and contract.
Who Prepares It, and When
Most Melbourne sellers use a licensed conveyancer or a property lawyer to prepare the Section 32 and the contract. You can do it yourself, however Consumer Affairs Victoria warns that DIY conveyancers will not have professional indemnity cover if something goes wrong. The safest route is to engage a professional who orders the right searches, chases certificates, and ensures the statement aligns with the Act.
Timing wise, you should have the Section 32 ready before you launch your listing. Agents usually make it available to interested buyers throughout the campaign and bring copies to auction day. If material facts change, update the statement, and circulate the updated version.
How to Read a Section 32 Like a Pro
Think of the Section 32 as several mini reports bundled together. Here is a simple route through it that works whether the property is in the CBD or the outer suburbs.
1. Title and Plan
Confirm the lot and plan numbers match the marketing, look for easements or covenants, and check who is on title.
2. Financials
Review rates and other outgoings, then look at any mortgages or statutory charges that will remain after settlement. The Act is specific about how these financial matters are to be disclosed.
3. Planning and Overlays
Note the zoning and any overlays such as heritage, environmental significance, or design and development overlays, all of which can shape renovation plans.
4. Notices and Orders
Scan for council or authority notices, proposed road widenings, acquisition notices, or anything that would change how the land can be used.
5. Building Permits and Owner Builder Items
Where there is a residence, look for the seven year building permit history. If the seller has done owner builder work, you may need to see warranty insurance and inspection reports.
6. Owners Corporation
For apartments and townhouses, read the owners corporation certificate, fees, special levies, rules, and insurance. Check that the certificate is current, not one from last year.
7. Services
Confirm what is connected and what is not, especially on the city's fringe or semi rural pockets, since connection costs can surprise.
A conveyancer will help you interpret the jargon and translate it to real world implications. Even if you are an experienced investor, a second pair of eyes is worth it when six or seven figures are on the line.
Common Traps We See in Melbourne Campaigns
Out of Date Owners Corporation Certificates
It is common to find a certificate ordered early in the campaign that has gone stale by the time of sale. If your building has recently struck a special levy for facade works or cladding remediation, a stale certificate can be disastrous. Ensure the certificate is current when the buyer signs.
Skimming Over Overlays
Buyers fall in love with period homes in Carlton or Armadale, then discover a heritage overlay that adds layers of permission and time to renovation dreams. Always read the overlay section carefully.
Missing Building Permit History
A fresh kitchen might hide structural work that required permits. The seven year disclosure rule is there to alert you. If it is blank in an otherwise renovated home, ask questions.
Assuming Services Are Connected
Newer estates may lack gas or even sewerage connection. Confirm early so you can plan budgets and timing.
Treating Section 32 as a Box Ticking Exercise
It is not. Inaccurate statements risk rescission rights and potential penalties. Getting the detail right is as important as great photography.
Auctions, Cooling Off, and the Section 32
Most Melbourne sales are private sale or auction. Regardless of the method, the buyer must receive a signed Section 32 before they sign the contract. At auction, buyers typically receive the statement during the campaign or on the day. There are many myths about 'fixing it later', however section 32 requires disclosure before contract, not afterwards.
Cooling off rights are separate and have exceptions, including for properties sold at or within three clear business days of a publicly advertised auction. The Section 32 does not create cooling off rights, it provides essential disclosure. If you are uncertain about your position, speak to your conveyancer promptly using the exact dates on your contract and statements.
What If the Section 32 Is Wrong or Missing?
Section 32K of the Sale of Land Act deals with false information, missing information, or failure to provide the statement at all before signature. In short, if the seller supplies false information, fails to supply required information, or fails to provide a signed statement before the buyer signs, the buyer may rescind the contract within the Act's limits. Rescission unwinds the deal, usually returning the deposit and putting both parties back where they started. There can also be offences and penalties for serious non compliance.
That does not mean every small typo voids a sale, and it does not give sellers a right to cancel because they have changed their minds. The rules are there to protect genuine, informed decision making. If you think a defect exists, get advice quickly.
Special Notes for Different Property Types
Apartments and Townhouses
The owners corporation material is critical. Read the minutes, look for insurance certificates, and note any pending special levies for lifts, balconies, or facade remediation. If the owners corporation is truly inactive, the statement must say so, however that term has a specific legal meaning, not just 'we rarely meet'.
Heritage Homes
Expect heritage or neighbourhood character overlays that influence extensions and external changes. Assume time and professional advice will be needed for approvals.
Fringe and Semi Rural Blocks
Services might not all be connected. Road access and bushfire prone designation must be disclosed and can shape design, insurance, and maintenance costs.
Step by Step: Preparing or Reviewing a Section 32
For Sellers
1. Engage Your Conveyancer Early
They will order title and plan documents, council and water rates information, and any specialised certificates.
2. Gather Your Records
Provide building permits and warranties for the last seven years, plus invoices that show what was done and by whom.
3. If You Have an Owners Corporation
Order a current certificate close to signing, not months in advance. If your OC is inactive under the Act, your conveyancer can document this correctly.
4. Review Draft Disclosures
Double check the planning scheme, overlays, and any authority notices. If anything changes during the campaign, update the statement and re issue it.
5. Coordinate With Your Agent
Ensure the statement is accessible online and in hard copy at opens and on auction day.
For Buyers
1. Request the Section 32 Early
In your due diligence, then book a review with your own conveyancer. Do not rely solely on the selling agent's summary.
2. Match the Paperwork to Your Plans
Love a future extension, a studio, or a pool. Great. Now check overlays, easements, and services to see if your dream is realistic.
3. Watch for Red Flags
Missing permits for obvious recent work, owners corporation certificates that are out of date, or notices from authorities that affect how you use the land.
4. Understand Your Rights
If you discover a defect in the Section 32, ask your conveyancer about remedies under section 32K. Act quickly, and keep everything in writing.
A Note on Costs and Timeframes
Turnaround times depend on how quickly authorities issue certificates. Owners corporation certificates are usually produced within statutory time frames, but peak seasons and complex buildings slow things down. Ordering everything at the start of the campaign helps avoid last minute stress. Your conveyancer will explain disbursement costs for each search and certificate so you can budget alongside your marketing spend.
Final Check: Is Your Section 32 Fit for Purpose
Ask yourself three questions before anyone signs:
- Does the statement contain all required categories from the Act for this property
- Are the attached certificates current and consistent
- Would a reasonable buyer, reading this bundle, feel properly informed
If you cannot answer 'yes' to all three, do not sign yet. A little patience now saves heartache later.
Conclusion: Let's Make Your Sale or Purchase Simpler
A good Section 32 is the difference between a smooth Saturday and an anxious week of phone calls. It shines a light on title quirks, planning constraints, building history, and shared property obligations. Whether you are selling a terrace in Fitzroy, a family home in Glen Waverley, or an off the plan apartment near the CBD, getting the Section 32 right is non negotiable under Victorian law.
If you would like a clear, human explanation of your specific Section 32, we are here to help. Contact Pearson Chambers Conveyancing for friendly guidance and a complimentary Section 32 contract review.