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If you have spent any time at open homes around Brunswick, Glen Waverley or Point Cook, you have probably heard an agent say, 'The Section 32 is ready to view.' It sounds technical, maybe even a bit mysterious, and it can feel like one more hoop to jump through on an already stressful journey. Here is the simple answer first, then we will unpack what actually matters for you in Melbourne.
What Is a Section 32?
It is called 'Section 32' because the obligation to give a vendor statement comes from section 32 of Victoria's Sale of Land Act 1962. Consumer Affairs Victoria puts it plainly: the reason for the name is that the required information is set out in section 32 of that Act.
The Legal Backbone, in Plain English
The Act says a seller must give the buyer a signed statement with the specified disclosures before the buyer signs the contract. These disclosures live in Division 2 of Part II of the Act and they cover the big ticket items that affect the property's title, use, costs and services. The law even allows the statement to be signed electronically, which is handy if you are racing between inspections and work.
In other words, Section 32 is the legal 'truth serum' for a sale. It is not optional, and it is separate from the contract. On Consumer Affairs Victoria's guidance page, you will see the same message: the Section 32 is usually prepared by a lawyer or conveyancer, and it must be accurate and complete. If it is wrong or incomplete, the buyer may be able to walk away or take action.
What Must Be in a Section 32?
Here is a clear snapshot of the disclosures, translated into everyday language. The wording comes from sections 32A to 32I of the Act.
Money matters: Mortgages that will remain, charges over the land, and outgoings like rates. Recent reforms add a new requirement to say whether the land falls under the state's commercial and industrial property tax reforms, including the 'AVPCC' land use code and, if relevant, the land's 'entry date'.
Insurance details: For example, what happens if the property is at the seller's risk for a while, and certain building insurance particulars for newer homes.
Land use and restrictions: Easements, covenants, zoning and overlays. A bushfire prone area declaration must be included where applicable. If there is no road access, that has to be stated too. In Melbourne, this is where you see the planning scheme name, responsible authority and any overlays, like heritage or flood overlays.
Notices and orders: Anything from a public authority that directly affects the land, such as building notices or acquisition proposals.
Recent building permits: If there is a residence on the land, permits issued in the last seven years.
Owners corporation information: If you are buying an apartment or townhouse in an owners corporation, the Section 32 must either include the prescribed information or attach a current owners corporation certificate and supporting documents. If the owners corporation is inactive, that fact must be stated.
Growth areas contribution and services: Details about any growth areas infrastructure contribution, and a statement of any unconnected services. Evidence of title must also be provided.
For buyers, this is where you learn things like: 'There is an easement along the back fence in Preston', 'The unit in Richmond is part of Owners Corporation No. 1 and has planned lift works', or 'The Ferntree Gully block sits in a bushfire prone area.' Add a quick tram ride through the overlays, so to speak, and you start to see the full picture.
Who Prepares It, and When Do You Get It?
In practice, the seller's solicitor or conveyancer prepares the Section 32 well before contracts are signed. Agents usually make it available at inspection or by email. You are meant to receive it before you sign. That timing is crucial because the statement is designed to inform your decision, not rubber stamp it afterwards. The state regulator says the same thing, and most agents now have digital copies ready to go.
Section 32 Is Not the Contract
This one trips people up. The Section 32 is a disclosure statement. The contract of sale is a separate document where the parties agree on price, settlement, inclusions and special conditions. Consumer Affairs Victoria separates them for a reason: you should not treat the vendor statement as a substitute for the contract, and vice versa. Read both.
What If the Section 32 Is Wrong, Incomplete or Missing?
The Act gives buyers a powerful safety net. If a seller provides false information, omits required information, or fails to give a signed Section 32 before you sign, you may be able to rescind the contract any time before you accept title and become entitled to possession or the rent and profits. There are exceptions where a court finds the seller acted honestly and you are not worse off, but the general position protects buyers who were kept in the dark.
There is also a separate offence for knowingly or recklessly providing false or incomplete information in a Section 32, and penalties apply.
Cooling Off Is Different from Section 32 Rights
Buyers often mix up 'cooling off' with Section 32 rights. Cooling off is its own rule in section 31 of the Act. For most private sales of residential or small rural land, you have three clear business days after signing to change your mind, with a small penalty, although there are important exceptions, including auction purchases and certain commercial or farming scenarios. Section 32 rights, on the other hand, focus on disclosure failures, not change of heart.
Apartments and Townhouses: Owners Corporations in Melbourne
If you are eyeing a one bedroom in Southbank or a townhouse in Coburg, expect an owners corporation to be involved. The law requires that the Section 32 either sets out prescribed owners corporation information or attaches a current owners corporation certificate plus key financial and meeting documents. If the OC is 'inactive' that must be stated, which can signal no meetings, no fees and no insurance in the last fifteen months. Beyond the Section 32, the Owners Corporations Act requires the certificate to be issued within ten business days of an application, which is why your conveyancer will order it early.
A quick Melbourne aside. I once reviewed a Section 32 for a Docklands unit with a gym and pool. The certificate flagged planned facade works and a special levy on the horizon. The buyer loved the view, but the numbers made the decision for them. That is what a decent Section 32 does: it shines a bright light on the dollars and risks.
2024–2025 Updates That Matter at Contract Time
Two recent reforms are worth keeping on your radar.
Passing on land tax or commercial and industrial property tax: For sales under a CPI indexed threshold amount, any clause that tries to pass a seller's land tax or commercial and industrial property tax onto the buyer is of no effect, and entering such a contract can attract penalties. The Act now sets this out in section 10G.
Passing on windfall gains tax: The Act also blocks passing on an existing windfall gains tax, including via options, and sets penalties, under section 10H. Agents and lawyers have adjusted their standard conditions accordingly.
There is a knock on disclosure change too. Section 32A was amended so the Section 32 must now state whether the land is 'tax reform scheme land' under the Commercial and Industrial Property Tax Reform Act 2024, include the latest AVPCC code and, if applicable, the land's 'entry date'. Expect to see that line appear in vendor statements for shops, warehouses and mixed use sites across Melbourne's inner north and west.
Can You Sign a Contract 'Subject to the Section 32 Later'?
Short answer, do not. The whole point is that you receive the Section 32 before you sign, so you can make an informed decision. A contract signed without having received a compliant Section 32 exposes the seller to the risk you can rescind, and it invites disputes that are expensive for everyone. The legislation is firm on the timing.
Reading a Section 32 Like a Local
Here is how I tell Melbourne buyers to skim then zoom:
Title and plan: Look for easements along laneways in the inner suburbs, old covenants in the east, or service easements in new estates.
Planning and overlays: Heritage is common in Carlton, Fitzroy and Canterbury; flood or drainage overlays pop up near creeks like the Merri and the Yarra; bushfire overlays matter in outer north east pockets.
Outgoings and charges: Check arrears and any unusual charges. Council rates in some growth corridors can be higher than you expect.
Building permits: If the kitchen looks new in an Ascot Vale terrace, see if a permit appears in the last seven years.
Owners corporation: Read the certificate, minutes and budget. Lifts, pools and cladding programmes change everything.
Common Myths Worth Busting
'It is just a formality.' Not true. If the Section 32 leaves out material information, you may have rescission rights. Sellers should treat it with respect and get professional help.
'The agent can summarise it for me.' Agents can help, but they are not your lawyer. For buyers, a quick review by a conveyancer in the CBD or your favourite suburban firm is money well spent. Consumer Affairs Victoria recommends using qualified professionals for a reason.
'Apartments are simpler because the OC handles everything.' If anything, there is more to read. The OC certificate and attachments reveal upcoming capital works, fee increases and insurance.
Practical Tips for Melbourne Buyers
Ask for the Section 32 early. If you are circling an auction in Reservoir, you want time for checks.
Do a quick reality check on services. Some fringe properties are not connected to gas or sewer. The Section 32 must say if services are not connected.
Scan for planning overlays. Overlays are not deal breakers, but they bring rules. Use the council's planning maps to see how they bite in your street.
If it is strata, read the OC certificate. Look for arrears, maintenance plans and special levies. The law expects this to be attached or fully disclosed.
Know your two safety nets. Cooling off gives you three clear business days for most private sales, while Section 32 rights protect you from poor disclosure. They are different tools in your kit.
A Quick Refresher: Why Is It Called 'Section 32' Again?
Because the obligation and the detail are all in section 32 of the Sale of Land Act. The government's consumer regulator says exactly that, and the Act's Division 2 spells out the disclosures. The name stuck, and it is now part of Melbourne's real estate vocabulary.
The Human Side of It
Property decisions are never just numbers. They are school runs in Kew, new jobs in the CBD, Sunday markets in Camberwell, and the first barbecue on a tiny balcony that somehow fits everyone. A good Section 32 gives you the facts to back your heart. If something looks off, you will know before you sign. If it all checks out, you can bid or make an offer with far more confidence. That is the point.
Talk to a Conveyancer Who Cares
If you are weighing up a purchase or getting ready to sell anywhere in Melbourne, we would love to help you cut through the noise. Pearson Chambers Conveyancing offers a complimentary Section 32 contract review and clear, practical advice tailored to your suburb and situation.