Section 32: A Complete Guide for Home Buyers and Sellers

Written By Thomas Roberts Founder, Which Real Estate Agent Updated Sep 24, 2025

If you’re buying or selling property in Victoria, one phrase you’ll hear a lot is “Section 32.” It might sound like legal jargon, but it’s one of the most important documents in the entire process. A Section 32, also called a vendor’s statement, is a legal disclosure that can make or break a property sale.

In this guide, we’ll walk you through what Section 32 is, what needs to be included, who prepares it, and the common pitfalls to avoid. Whether you’re a buyer trying to understand what you’re signing, or a seller preparing your home for the market, this article will give you clarity and confidence.

Key Takeaways

A Section 32 statement (vendor’s statement) is a legal document sellers in Victoria must give buyers before signing a contract.

It discloses important details like title, mortgages, easements, zoning, rates, building permits, services, and owners corporation information.

Buyers should carefully review it (ideally with a solicitor/conveyancer) to spot red flags like debts, restrictions, or missing permits.

Sellers must ensure the Section 32 is accurate and up to date, missing or incorrect information can let buyers cancel the contract.

Section 32 is usually prepared by a conveyancer or solicitor, costing around $200–$500, and certificates should be refreshed if more than 3 months old.

Common mistakes include outdated certificates, undisclosed works, and missing owners corporation documents.

A strong, compliant Section 32 helps buyers purchase with confidence and sellers avoid failed sales or legal disputes.

What is Section 32 Statement?

A Section 32 statement (often called a vendor’s statement) is the legal disclosure a seller must give a buyer before the buyer signs a contract. It sets out facts about the land that could influence a buyer’s decision, things like title details, restrictions on use, planning/zoning, rates, owners corporation matters and recent building permits. In short, it’s the “read this before you commit” document for Victorian property. The obligation comes from section 32 of the Sale of Land Act 1962 (Vic).

Section 32 exists because buying property involves more than the house itself. Rights of way, mortgages, planning overlays, owners corporation fees or an old building order can all affect value and future plans. Section 32 makes sure key information is disclosed up front so buyers can decide with eyes open and so sellers aren’t accused later of hiding the ball.

Why Section 32 is Important in Victoria

For buyers, Section 32 gives transparency. It tells you whether there’s an easement where you wanted to put a pool, if the apartment has owners corporation fees, or if a renovation needed permits. Without proper disclosure, you could end up with costly surprises.

For sellers, doing Section 32 properly protects the sale. If you don’t provide a compliant Section 32 before the buyer signs, the buyer may have a right to rescind (cancel) the contract within a certain window, a serious outcome if you’re counting on settlement. The Act expressly allows rescission if the statement wasn’t given in time or is defective (for example, it omits required information or contains false information).

A complete, accurate Section 32 helps prevent disputes and keeps your transaction on track

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What Must Be Included in a Section 32 Statement

Think of this as a checklist. The exact contents vary by property, but the Act sets out categories of disclosure and documents that must be attached. In plain language, a typical Section 32 will cover:

Title & plan – a current title search/plan so the buyer can see who owns the land and its boundaries. It also reveals mortgages, caveats, covenants and easements registered on the title.
Financial matters/outgoings – rates, taxes and other charges that affect the land (e.g., council rates, water). These are usually evidenced by certificates.
Planning & zoning – the planning scheme, zone and any applicable overlays that control what can be done with the property.
Building permits (last 7 years) – for residential property, disclose any building permits issued in the previous seven years (and related occupancy/final certificates where applicable). This helps buyers assess whether works were approved.
Services – whether essential services (water, electricity, gas, sewerage/effluent) are connected or available. If a service is not connected, that must be stated.
Owners corporation (if applicable) – if the property is part of an owners corporation, include the owners corporation certificate and required attachments (fees, insurance, rules, any notices). Consumer Affairs Victoria specifically notes this must be included
Notices, orders & declarations – any government or authority notices that affect the land (for example, a building order or fencing notice) must be disclosed.

Recent updates: Disclosure items are occasionally updated by Parliament (for example, new tax-related disclosures were added to the financial matters section in 2024). Using up-to-date certificates guards against accidental non-compliance.

Who Prepares Section 32?

Legally, the vendor is responsible, but in practice your solicitor or licensed conveyancer prepares it. They will order searches and certificates, review your title, check for owners corporation obligations, confirm building permits, compile the statement, and have you sign it before it’s given to any buyer. CAV guidance recognises engaging a legal practitioner or conveyancer for this work.

Timing tip: Some certificates (especially owners corporation certificates) can take up to 10 business days to arrive, so start early to avoid delaying your listing or negotiations.

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Common Mistakes to Avoid with Section 32

Even well-intentioned sellers slip on the details. The most frequent issues are:

Out-of-date certificates – relying on old rate or planning certificates can miss recent notices or changes. Keep everything current when you go to market.
Missing owners corporation attachments – forgetting the certificate or rules is a classic apartment/ townhouse error and can render the statement defective.
Undisclosed building works – renovations within 7 years without disclosing permits (or stating none were obtained) raise red flags and can unravel a deal.
Leaving out easements/covenants – these often sit quietly on the title but seriously affect what you can build or where. Make sure they’re clearly disclosed.
Notices affecting land – for example, a building order issued before sale that isn’t disclosed may make the statement defective and expose you to cost or cancellation risks.

Consequences: If the statement was not provided before signing or is defective, a buyer may be able to rescind before accepting title/possession which can mean a lost sale and time back on the market.

Section 32 for Buyers: How to Spot Red Flags Before You Buy

Reading Section 32 is not about legalese, it’s about spotting the practical things that affect how you’ll live in (or lease) the property.

Title red flags: mortgages you weren’t expecting, easements where you planned a shed, restrictive covenants that limit extensions or second dwellings. Ask your lawyer what each restriction means in practice.
Planning & overlays: a nice wide block might be under a heritage or flood overlay; zoning may limit dual-occ or business use. Check the planning extract to see what’s realistically allowed.
Building history: permits in the last 7 years indicate approved work; no permits for recent-looking renovations can be a risk (insurance, safety, rectification).
Services & outgoings: ensure key services are connected (or budget for connection) and understand ongoing costs like council rates, water and owners corporation fees.
Notices/orders: anything issued before sale (e.g., a building order) should be disclosed and may require work or costs after you settle.

Buyer tip: Have a conveyancer/solicitor review the Section 32 before you sign. It’s a modest cost that can save you from expensive surprises later.

Section 32 for Sellers: How to Get It Right and Avoid Delays

A thorough, accurate Section 32 builds buyer confidence and keeps your sale moving.

Engage your conveyancer/solicitor early. Ask them to order searches and certificates as soon as you’re thinking of selling. Allow time for owners corporation certificates.
Be transparent about work. Provide details of any building permits (or confirm none were issued) for works in the past 7 years. If you were an owner-builder, extra disclosures and insurance may apply.
Match reality to paperwork. Make sure what’s on the title and in certificates reflects what’s on the ground (e.g., no unapproved garage over an easement).
Include all owners corporation material. Apartment/townhouse sellers must attach the right certificate and documents. Buyers (and their lawyers) will check.
Keep it current. If your campaign runs for months, your practitioner may recommend refreshing key certificates so disclosure stays accurate.

Why it matters: If buyers discover missing or wrong info, they may have rights to walk away. A clean, complete Section 32 reduces renegotiations, keeps trust high and helps you reach settlement smoothly.

Final Thoughts

A Section 32 statement in Victoria isn’t just paperwork, it’s the foundation of a fair and transparent property sale. For sellers, it’s about compliance and protecting your deal. For buyers, it’s about peace of mind before you commit.

Always have your Section 32 prepared and reviewed by a qualified solicitor or conveyancer. Cutting corners could cost far more in the long run.