Section 32 Vendor Statement – Frequently Asked Questions
The Section 32 Vendor Statement (commonly referred to as a “Section 32”) is a critical legal document that must be provided by, or on behalf of, a vendor to any prospective purchaser before a contract of sale is signed. Failing to comply can lead to serious consequences for the seller.
This FAQ is divided into three key areas:
General information about Section 32 Vendor Statements
Vendor-specific questions
Purchaser-specific questions
For a more detailed breakdown of what must be included in a Section 32, see our full guide:
Section 32 Explained – A Guide For Consumers [link here]
General FAQs
What Is a Section 32?
A Section 32 is a compulsory disclosure document that must be given to a prospective purchaser before they sign a contract of sale. It's named after Section 32 of the Sale of Land Act 1962 (Vic), which sets out what a vendor must disclose about the property.
If the Section 32 isn’t provided properly, or contains serious omissions, the purchaser may have grounds to cancel the contract. But this isn’t automatic—there are strict rules and exceptions, and not every error will allow a buyer to walk away.
Today, Section 32 Statements must include more detailed information than ever before, especially where the vendor has done work as an owner-builder. Mistakes or missing documents can delay settlement or expose the vendor to penalties.
We ensure your Section 32 is compliant, accurate, and ready to serve.
👉 See: What’s in the Section 32 for more.
Who Prepares the Section 32?
Although the Sale of Land Act does not specify who must prepare it, the Section 32 is a legal document and should be prepared by a qualified lawyer or conveyancer, not a real estate agent.
Providing false or incomplete information is a criminal offence. Vendors who are poorly advised may still bear full responsibility under the law.
Typically, a vendor’s lawyer or conveyancer prepares the document and passes it on to the selling agent. If the property is sold privately, the vendor’s lawyer conveyancer may send it directly to the buyer or their representative.
How Long Does It Take to Prepare?
We can prepare most Section 32 Vendor Statements within 24 hours, depending on how quickly certificates can be obtained from councils and authorities.
If an Owners Corporation is involved, or if the vendor is an owner-builder, it may take longer. Regional properties with water rights or grazing licences may also delay preparation.
Who Must Sign the Section 32?
Only the vendor must sign the Section 32. Purchasers are often asked to sign for the benefit of the estate agent, who needs proof that the Section 32 was provided before the contract was signed.
Can Digital Signatures Be Used?
Yes. Both the Section 32 and Contract of Sale may be signed using electronic or digital signatures, provided the method used complies with required standards.
Digital signatures use encrypted technology and a third-party verification network. Electronic signatures are simpler, such as clicking a button or typing a name.
When Must the Section 32 Be Provided?
It must be given to the purchaser before any contract is signed.
If a contract includes a condition that the sale is “subject to the Section 32 being provided,” the sale is legally flawed and unenforceable; in short, don’t do it.
What Is in a Section 32?
The Section 32 Vendor Statement must include certain disclosures as required by the Sale of Land Act 1962 (Vic). The exact contents vary depending on the property, but generally include the following:
Statutory Warnings
A formal warning about the importance of reading the Section 32 before signing a contract.
📌 Section 32D
Vendor Details
The full name and address of the vendor.
📌 Section 32C(1)(a)
Title and Plan Information
A copy of the Register Search Statement and the plan of subdivision or title diagram. This confirms ownership, title particulars, and any dealings registered on title.
📌 Section 32C(1)(b)
Building Permits (Last 7 Years)
Details of building permits issued under the Building Act 1993 (Vic) in the last 7 years for the property.
📌 Section 32C(2)
Owner-Builder Reports and Insurance
If the vendor did work as an owner-builder, a copy of the condition report and evidence of the required insurance must be included.
📌 Section 32C(2) and Section 137B of the Building Act 1993 (Vic)
Mortgages or Charges
Disclosure of any mortgage or charge over the land, whether registered or unregistered.
📌 Section 32C(1)(c)
Easements, Covenants, and Restrictions
Any registered easements, covenants, or restrictions affecting the land must be disclosed, even if they’re not registered.
📌 Section 32C(1)(d) and 32C(1)(e)
Zoning and Planning Details
The zoning of the land under the relevant planning scheme, including any overlays or proposed amendments.
📌 Section 32C(1)(f)
Outgoings (Rates and Land Tax)
Disclosure of all outgoings payable by the owner, such as council rates, water charges, and land tax.
📌 Section 32C(1)(g)
Notices or Orders from Authorities
Details of any notices, orders, or approved proposals that affect the land and have been issued by a government authority.
📌 Section 32C(1)(h)
Road Access
Confirmation of whether the land has access to a road.
📌 Section 32C(1)(i)
Connected Services
Disclosure of which services are connected to the land, such as electricity, gas, water, sewerage, and telephone.
📌 Section 32C(1)(j)
👉 See: But what is NOT there?
When Does a Section 32 Expire?
A Section 32 itself doesn’t have a set expiry date, but many of the documents it relies on—like title searches, planning certificates, and rates notices—are only considered current for around 90 days.
If the property hasn’t sold within that time, the vendor should update the relevant certificates and reissue the Section 32. Using outdated or incorrect information can give the purchaser grounds to cancel the contract or delay settlement.
We recommend reviewing the statement regularly to make sure it remains accurate and compliant before each offer is made.
What If the Section 32 Is Defective?
If the Section 32 contains false or misleading information, or leaves out something it was required to disclose, it may be considered defective.
This isn’t just a technicality—it’s a serious matter. Providing a defective Section 32 is an offence under the Sale of Land Act 1962 (Vic) and may result in fines of up to 50 penalty units.
More importantly, a purchaser may have the right to cancel the contract at any time before settlement if the defect is material.
Defects can also lead to broader liability under the Australian Consumer Law (as set out in the Competition and Consumer Act 2010 (Cth)) or the Fair Trading Act 1999 (Vic)—especially if misleading or deceptive conduct is involved.
Real estate agents may also face disciplinary action if they’re found to have distributed or relied on a defective statement without proper checks.
For vendors, the safest approach is to make sure the Section 32 is accurate and complete before it’s ever handed to a buyer.
How to Read a Section 32
Purchasers should ask:
What’s in it?
Is the information accurate?
What might be missing?
It’s common for the seller’s name not to match the title, or for the wrong carpark or lot to be listed. Some documents may be out of date or incorrectly prepared by unqualified parties.
Many critical issues—like unauthorised works, rights of access, fencing, or easements—won’t be obvious on inspection. A properly prepared and reviewed Section 32 can flag these issues before they become problems.
Vendors and the Section 32 Statement
Why is the Section 32 important for the seller?
The Section 32 Vendor Statement is not optional—it’s a legal requirement under the Sale of Land Act 1962 (Vic).
If you fail to provide one, or serve a version that’s incomplete or inaccurate, the purchaser may be entitled to cancel the contract. In some cases, this can happen even after contracts are signed and the property is effectively sold.
The Section 32 must include key information such as:
A current title search
Statutory warnings
Details of any mortgages or charges
Planning and zoning particulars
Outgoings like council rates and land tax
Getting this right from the outset is essential. A properly prepared Section 32 doesn’t just meet your legal obligations—it helps protect your sale.
If a purchaser later tries to walk away without a valid reason, a compliant Section 32 strengthens your ability to hold them to the contract and retain the deposit.
When must the Section 32 be provided?
The Section 32 must be given to a prospective purchaser before they sign the contract of sale.
If it’s not served beforehand, the contract may be invalid, and the buyer could walk away.
For that reason, we strongly recommend preparing the Section 32 before the property is listed. If a buyer makes an early offer or wants to sign quickly, delays in getting the statement ready can cost you the sale.
Having the Section 32 prepared and ready to go means you can respond confidently to offers and move forward without last-minute setbacks.
What happens if the Section 32 is found to be defective?
If the Section 32 is incomplete or contains errors, the purchaser may have the right to cancel the contract and walk away—potentially without penalty.
Where the defect involves false or misleading information, the vendor may be committing an offence under the Sale of Land Act 1962 (Vic). There may also be civil consequences under the Competition and Consumer Act 2010 (Cth) and the Fair Trading Act 1999 (Vic).
In simple terms, the information in the Section 32 must be complete, accurate, and not misleading. Anything less puts the sale at risk.
What are the steps to draft a Section 32 Vendor Statement?
Because of the legal risk involved, it's strongly advised that a lawyer or licensed conveyancer prepare the Section 32.
To assist with preparation, the vendor should supply:
Title documents
Details of any mortgages or charges
Evidence of outgoings and services
Information about past building works or permits
The timeframe will depend on the property and the certificates needed, especially if there’s an Owners Corporation involved. The more supporting information you provide upfront, the faster and more accurate the preparation will be.
How do you read a Section 32 as a vendor?
You must ensure that all included documents are accurate, current, and accessible.
Buyers will rely on the Section 32 to understand legal and practical aspects of the property that are not obvious from a physical inspection—like zoning restrictions, future council works, or road access.
A well-prepared Section 32 protects your interests after the cooling-off period and may allow you to keep the deposit if a purchaser later tries to pull out.
Do I Need a Lawyer to Prepare the Section 32?
No. A licensed conveyancer is fully qualified and legally permitted to prepare the Section 32 Vendor Statement in Victoria.
At Victorian Property Settlements, we prepare hundreds of compliant Section 32 Statements every year. Where a property has unusual planning controls, significant works, or known issues such as unapproved structures, we will always flag this and recommend additional steps or professional input as needed.
A defective Section 32 can lead to cancelled contracts, delayed settlements, or disputes down the track. We ensure the statement is accurate, complete, and fully compliant before it's ever served on a buyer.
If you're thinking of selling and want it done properly from the start, we’re ready to help.
Do I still need a Section 32 for a private sale?
Yes. A Section 32 is required for all property sales in Victoria—whether you use a real estate agent or sell privately.
Even in a private sale, the purchaser must receive a copy of the Section 32 before signing the contract. If it isn’t provided, the contract may be invalid, and the sale can’t proceed lawfully.
Selling privately doesn’t mean skipping legal steps. The disclosure rules still apply.
What if the estate agent wants to change something?
An estate agent must not alter the Section 32 Vendor Statement.
If changes are needed—such as adding or removing documents—this should only be done by a licensed conveyancer or solicitor. In most cases, even minor amendments will require the vendor to re-sign the statement before it can be served again.
Letting someone unqualified tamper with the Section 32 exposes the vendor to serious legal risk, including potential cancellation of the contract. Always check with your conveyancer before making changes.
How can I make quick changes to the Section 32?
If you need to make a simple correction—such as a spelling error or middle name—you may neatly strike through the incorrect text, write the correction next to it, and have all vendors initial the change.
However, this should always be confirmed with your legal representative before proceeding. Some changes may require reissuing and resigning the full document.
Can I digitally sign a Section 32?
Yes. Digital or electronic signing is permitted under Victorian law.
Most professionals now use secure platforms like DocuSign to manage digital signatures. These are accepted as valid for both Section 32 Vendor Statements and Contracts of Sale, provided the platform complies with legislative requirements.
Must I disclose if my property is ‘stigmatised’?
Currently, there is no legal obligation to disclose if a property is “stigmatised”—such as one associated with a crime, death, or supernatural claims.
However, this may change. Future amendments to Sale of Land Act 1962 may introduce disclosure requirements for stigma. Until then, disclosure is not mandatory but may be advisable depending on the circumstances.
Purchasers and the Section 32 Statement
Why is the Section 32 Vendor Statement important for the buyer?
Many risks and restrictions affecting a property won’t be visible during an inspection or mentioned in a sales brochure. That’s why the law requires the vendor to provide a Section 32 Vendor Statement disclosing key information before any contract is signed.
Under Section 32 of the Sale of Land Act 1962 (Vic), vendors must disclose all matters that may affect the land—such as mortgages, planning controls, building works, and services. This gives buyers the information they need to make an informed decision.
When can the buyer expect the Section 32 to be provided?
The Section 32 must be made available to a purchaser before they sign the contract of sale. Agents should have it ready to hand over to any interested buyer at the first stage of negotiations.
If it is not provided upfront, or a contract is signed before it is issued, the contract may be voidable.
What documents does the seller not need to provide?
Contrary to popular belief, the seller is not required to include documents such as:
The most recent council rate notice
A copy of the land tax certificate
The last water bill
However, the Section 32 must still disclose information about rates, services, and planning. The law does not require specific documents for all matters—it requires the correct information.
What happens if the Section 32 is missing documents?
A defective or incomplete Section 32 may give the purchaser the right to cancel the contract at any time before settlement.
However, not every omission will allow the purchaser to walk away. The materiality of the missing document must be assessed.
It is always appropriate to seek clarification from the vendor’s representative if something appears to be missing. If you’re unsure, having a lawyer or conveyancer review the Section 32 will ensure you're properly informed before proceeding.
What if the seller refuses to provide a Section 32?
You should never sign a contract to buy residential property in Victoria without first being given a Section 32 Vendor Statement.
If a seller refuses to provide one, they are in breach of the Sale of Land Act. In such cases, you walking away—no matter how appealing the property seems, somthing is claerly not right.
What happens if the Section 32 is found to be defective?
If the Section 32 is defective, you may have the right to:
Rescind the contract
Withhold settlement
Seek compensation
You should first get professional advice. Not every defect will allow contract cancellation, and some rights may be lost if you proceed without taking proper steps.
If false information was knowingly included, this may constitute a criminal offence by the vendor and give rise to a civil claim under the Competition and Consumer Act 2010 (Cth) or Fair Trading Act 1999 (Vic).
How do you read a Section 32 as a buyer?
When reviewing a Section 32, you want to check that:
All required documents are present
All disclosures are accurate
Nothing significant is missing
Look closely at:
The certificate of title – Does the vendor actually own the property?
Encumbrances and mortgages
Zoning restrictions and overlays
Details of past building permits or renovations
Lease agreements, if the property is tenanted
It’s essential to confirm that the person selling the property has legal authority to do so and that what’s offered matches what you’ve seen.
Do I need Someone to look through the Section 32?
Yes. Whether this is your first home or your fifth investment, it’s strongly recommended that a qualified lawyer or conveyancer review the Section 32 before you sign anything.
Even experienced buyers can miss key risks—like encumbrances, undisclosed defects, or zoning limitations. Having the Section 32 reviewed professionally helps ensure that the property is suitable and that the vendor has met all legal disclosure requirements.
What other documents are important when buying a property?
In addition to the Section 32, there are several other documents that you should review carefully:
Outgoings
The vendor must disclose the approximate outgoings (council rates, water rates, land tax, etc.) so you can budget for ongoing costs.
Zoning Certificate
This confirms how the land may be used—for example, residential or commercial. Don’t assume a property is zoned as advertised.
Building Permits
If any works were done in the last 7 years, permits should be included. This protects you from inheriting liability for unauthorised works.
Owners Corporation Certificate
Required for units, townhouses, and apartments. This document shows:
Body corporate fees and arrears
Current or proposed special levies
Insurance
Building maintenance
Minutes of meetings and proposed major works
Rules and restrictions (e.g. pets, renovations)
If there’s a major refurbishment planned and no money in the fund, you could be hit with a large special levy after settlement.
How does the Section 32 work in private sales?
The Section 32 is required whether or not an estate agent is involved.
In a private sale, the vendor must still provide the Section 32 before you sign anything. If a seller refuses to do so, you should not proceed. You are entitled to see this information and make an informed decision—regardless of how informal the sale might seem.
Section 32 Searches and Certificates
While only a few documents are strictly required under the Sale of Land Act 1962 (Vic), most of the information in a Section 32 is provided via search certificates issued by government departments, councils, and statutory authorities.
These certificates help ensure the disclosure is complete and accurate. They also protect both vendor and purchaser by verifying key details that may not otherwise be known or available.
Below is an overview of the most common certificates and their role in a compliant Section 32.
Why is the Section 32 required to have a Register Search Statement?
Section 32I of the Sale of Land Act 1962 states that a Section 32 must always include a:
“…copy of the Register Search Statement and the document, or part of the document, referred to as the diagram location in the Register Search Statement that identifies the land and its location.”
This is commonly known as the title search.
It confirms the vendor's ownership and discloses:
The current registered proprietor
Volume and folio numbers
Registered mortgages or encumbrances
Easements
Lot and plan information
What is the Land Information Certificate?
Issued by the local council, this certificate provides:
The current valuation of the property
Annual rates payable
Any arrears or interest owing
Outstanding charges or works notices
It’s essential for accurate settlement adjustments.
⚠️ Note: Most Land Information Certificates contain disclaimers, including that they do not cover land slip, flooding, or mining subsidence risks.
What is a VicRoads Certificate?
This certificate discloses whether VicRoads (the Roads Corporation of Victoria) has any:
Approved plans to acquire land
Road-widening proposals
Compulsory acquisition orders
If VicRoads has identified future plans affecting the property, this must be disclosed in the Section 32.
What is an Owners Corporation Certificate?
If the property is affected by an Owners Corporation (body corporate), a certificate must be included under the Owners Corporations Act 2006 (Vic).
This certificate includes:
Current fees payable by the lot
Outstanding fees or arrears
Approved special levies
Details of future maintenance or capital works
Insurance information
Total funds held by the Owners Corporation
Any contracts, leases or licences over common property
Legal proceedings or compliance issues
Whether an administrator or manager is appointed
⚠️ Exception: For off-the-plan sales, where the Owners Corporation has not yet been formed, this certificate may not yet be available.
What is the Water Information Statement?
This certificate, issued by the water authority (e.g. South East Water or Yarra Valley Water), shows:
Outstanding water usage or service charges
Sewerage connection details
Any encumbrances related to drainage
Combined drain information (which may limit future development potential)
This certificate is essential for settlement adjustments and helps identify development limitations that may not be visible from the title or plans.
What is the Land Tax Clearance Certificate?
Issued by the State Revenue Office (SRO), this certificate confirms whether any land tax is owing on the property.
Even if the land tax is not being adjusted between the parties, the certificate is still commonly included to:
Avoid surprises at settlement
Ensure the property is free from land tax debt
Apportion tax if required by the contract
Land tax is a charge on land and must be paid before the title can transfer.
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What is the Due Diligence Checklist?
Under Consumer Affairs Victoria guidelines, every residential sale must be accompanied by a Due Diligence Checklist available to all potential buyers.
It covers issues that may affect a purchaser’s use or enjoyment of the property, including:
Planning restrictions
Easements and encumbrances
Flooding, fire, and environmental risk
Heritage listings
Future developments in the area
Infrastructure or road proposals
Restrictions on renovations or land use
Vendors and agents must provide this checklist by:
Making copies available at open homes
Linking to it on their website
Giving it directly to interested buyers
Final Reminder
Every Section 32 must be tailored to the property it relates to. Certificates are essential not just for compliance, but for proper risk management. If you’re buying or selling, ensure your Section 32 is professionally prepared and thoroughly reviewed.
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