Should the Vendor Provide Certificates? What Victorian Buyers Need to Know

/

Understanding Your Rights as a Purchaser When the Section 32 Doesn’t Include All the Certificates

One of the most common misunderstandings we see in Victorian property transactions is this:
The purchaser looks through the Section 32 Statement (Vendor’s Statement), doesn’t see a Land Tax Clearance Certificate, Water Information Statement, or Land Information Certificate, and asks their conveyancer:
“Shouldn’t the vendor have included these? Shouldn’t we demand they provide them?”

Our answer?
No — and here’s why.

1. The Section 32 Can Be Valid Without Certificates

Let’s start at the top. The Sale of Land Act 1962 (Vic) sets out what must be disclosed in a Section 32. That includes information about:

  • Title particulars

  • Services connected to the land

  • Planning details

  • Owners Corporation matters

  • Any notices or charges affecting the property

  • Outgoings (rates, land tax, etc.)

Nowhere in the Act does it say a vendor must attach certificates to make the Section 32 valid. What the law requires is that the information be disclosed — and that can be done in writing, with or without attaching a third-party certificate.

Yes, certificates can help verify accuracy, but they’re not required for the Section 32 to be compliant.

2. You’re Meant to Get the Certificates Yourself

This might surprise many buyers — but the protection you get from these certificates is only triggered when you, the purchaser, obtain them.

Here’s how its works:

Land Tax – Section 105(4), Land Tax Act 2005 (Vic):

A purchaser who obtains a valid Land Tax Clearance Certificate from the State Revenue Office cannot be held liable for the vendor’s unpaid land tax, penalty interest, or arrears for tax years that ended before the certificate was issued.

This is a statutory liability shield — but it only applies if the purchaser orders and relies on the certificate themselves. If you rely on one the vendor provides, and it turns out to be outdated or incorrect, you could be left exposed.

The same principle applies under:

  • *Section 229 of the Local Government Act 1989 (Vic) – Land Information Certificates

  • *Section 158 of the Water Act 1989 (Vic) – Water Information Statements

All of these instruments protect you, the buyer, only when you’re the applicant and recipient. Not the vendor. Not their lawyer. Not a real estate agent.

So why would you ever want to give up that protection?

3. Relying on Vendor Certificates Can Undermine Your Protection

This isn’t just a practical concern — it’s also a legal one.

Under Section 42(2) of the *Transfer of Land Act 1958 (Vic), a purchaser who pays value and registers on title without notice of any defect holds indefeasible title. In other words, your ownership can’t be challenged unless fraud is involved.

But if you rely on an outdated certificate handed to you by the vendor — and it turns out to be wrong — you may be said to have had constructive notice of a defect. That could jeopardise your right to rely on section 42.

It’s a terrible trade: penny-pinching a $30 - $50 certificate to save a few dollars, but risking a legal right worth hundreds of thousands.

Any conveyancer worth their salt would never recommend that.

4. What If the Vendor Hasn’t Disclosed a Road Scheme Charge?

Let’s say the vendor fails to disclose that the property is subject to a road scheme charge — something that should have been included in the Section 32 under outgoings or notices from council.

If you, as the purchaser, obtain a Land Information Certificate directly from council and it clearly shows the charge — but the vendor didn’t disclose it — then that’s grounds to rescind the contract. You could be entitled to a full refund of your deposit.

This kind of omission is not a grey area — it’s a breach of the vendor’s obligations under the Sale of Land Act 1962 (Vic), and the courts have consistently held that misleading or incomplete vendor statements can justify termination.

This is exactly why relying on vendor-supplied certificates is dangerous. If the certificate they gave you was outdated or incomplete, and you didn’t obtain your own, you may not be able to claim you were misled. That’s because courts may view your reliance on vendor materials — rather than doing your own due diligence — as contributing to the problem.

The rule is simple: you’re safest when you get your own certificates, in your name, before settlement. They act as your proof, your timing trigger, and your shield.

5. So, What Should You Do as a Purchaser?

  • Don’t ask the vendor to provide these certificates.
    They’re not required to, and if they do, the protections may not apply to you.

  • Order your own Land Tax Clearance Certificate, Land Information Certificate, and Water Information Statement.
    These are inexpensive and easy to get. Your conveyancer should be doing this as a matter of standard practice.

  • Don’t rely on advice that says otherwise.
    If someone is telling you that the vendor must supply these documents, it may be a sign that your representative doesn’t fully understand the current legal protections or how liability is apportioned under Victorian property law.

Final Thought

A Section 32 without certificates is not a red flag.
It’s often the default — particularly at the start of the financial year, or where the vendor is waiting for updated figures.

What matters is that the information is accurate, not whether a document is attached.
And what matters more is that you’re holding the certificates, not just reading ones passed to you.

This is your purchase. Own the process — and protect yourself properly.

Victorian Property Settlements
Trusted for over 25 years by Victorian buyers and sellers.
Visit: www.victorianpropertysettlements.com.au