Buying a home is one of the biggest decisions most of us ever make — and in Victoria, almost all of it turns on two documents: the contract of sale and the Section 32 vendor's statement. The contract sets out the deal. The Section 32 tells you the truth about what you are actually buying. If you only read one document carefully before you sign, make it this one.
This article explains, in plain English, what a Section 32 is, what it must contain, and why a few hours spent reading it properly can save you years of regret. This is general information, not legal advice — every property is different, and you should have your own statement reviewed before you commit.
What a Section 32 actually is
The name comes from section 32 of the Sale of Land Act 1962 (Vic). The law requires a vendor (the seller) to give a prospective buyer a written statement of important facts about the property before the buyer signs the contract of sale. It is sometimes called the "vendor's statement" or simply "the 32".
The point of the statement is to put the buyer on a level footing. The seller knows the property; you usually don't. So the law forces the seller to disclose the things that could affect your decision — the title, the money owing against it, the planning controls, and any nasty surprises lurking in the background. It is a consumer-protection document, written for your benefit.
A signed contract is a promise. A Section 32 is the homework that tells you whether the promise is one worth making.
What a Section 32 must contain
The exact contents are set by the Act, but in practice a Section 32 for a typical Victorian home will include:
- Title details — a copy of the certificate of title and the plan, so you can see exactly what land you are buying and who legally owns it.
- Mortgages and charges — any loan or financial charge secured against the property that must be discharged at or before settlement.
- Easements, covenants and restrictions — rights other people may have over the land (a shared driveway, a drainage easement, a sewer running under the back yard) and any limits on what can be built.
- Planning and zoning information — the planning scheme that applies, so you can tell whether your plans (a renovation, a subdivision, a granny flat) are even possible.
- Rates, taxes and outgoings — council rates, water and any land tax, and owners corporation fees if the property is part of one.
- Owners corporation details — for apartments and units, the financial position, rules and insurance of the owners corporation (formerly "body corporate").
- Building and works information — any building permits issued in the last seven years and, where relevant, owner-builder warranty insurance.
- Notices and orders — any notice or order from an authority affecting the land, such as a road-widening proposal or a building order.
- Services — whether the property is connected to electricity, gas, water, sewerage and telephone.
If the property has a particular history — it once held an underground fuel tank, it is in a bushfire-prone area, or it sits in a designated flood overlay — that should show up here too. The detail varies from property to property, which is exactly why each statement deserves to be read on its own terms.
Why it matters so much
It is your one clear window before you commit
In Victoria, residential buyers usually have a short cooling-off period after signing a private-sale contract — but it is brief, it has conditions, and it can cost you a penalty to use. It also does not apply if you buy at auction. The Section 32 is meant to give you the facts before you sign, while you can still walk away freely. Reading it after you've signed is reading it too late.
It reveals what a photo never will
A property can look perfect on inspection and still carry an easement that blocks the extension you were planning, a covenant that dictates your roof colour, or an owners corporation in financial trouble that is about to levy every owner for urgent repairs. None of that is visible at an open for inspection. It lives in the Section 32.
A defective statement can give you rights
If a vendor fails to disclose something the law required, or gives false information, a buyer may in some circumstances have the right to withdraw from the sale — even after signing — and recover their deposit. That is a powerful protection, but the rules are technical and time-sensitive. Getting advice quickly, rather than hoping the problem goes away, is what makes the difference.
What to do when you receive one
- Read every page — including the attachments and the fine print on the title plan.
- Note anything you don't understand, particularly easements, covenants and any owners corporation figures.
- Check that the planning and zoning allow what you intend to do with the property.
- Have the statement reviewed alongside the contract of sale by a lawyer or licensed conveyancer before you sign or bid.
- Keep the dated copy you were given — it is evidence of what you were told, and when.
How Pasha Legal can help
Buying or selling a home should feel like progress, not a gamble. At Pasha Legal we review your Section 32 and contract of sale together, in plain English — flagging the easements, covenants, planning controls and owners corporation issues that matter, and telling you honestly whether the property is the safe buy it appears to be. For sellers, we prepare a complete and compliant statement so your sale doesn't unravel over a missing disclosure. Whether you are a first-home buyer in Doncaster East or an investor settling off-the-plan, we'll make sure you sign with your eyes open. Your first consultation is confidential — get in touch and we'll take it from there.