Section 32 Vendor Statement Victoria Explained

Buying or selling property in Victoria? There’s one document that sits at the heart of every transaction.  A Section 32 (also called a vendor statement) is a legal disclosure document that the seller must hand over to the buyer before a contract of sale is signed. 

It’s required under Victoria’s Sale of Land Act 1962, and it covers everything from who actually owns the property to whether there are any debts, restrictions, or hidden surprises attached to it.

Whether you’re a first-home buyer trying to make sense of the paperwork or a seller preparing to list, this guide breaks down what a Section 32 vendor statement is, what’s included, who prepares it, and what can go wrong if it’s not done properly.

Key Takeaways

• A Section 32 vendor statement is a mandatory disclosure document sellers must provide to buyers before a contract is signed in Victoria.
• It includes title details, zoning information, rates and outgoings, building permits, and any restrictions on the property.
• The vendor’s solicitor or conveyancer typically prepares the Section 32.
• If Section 32 is incomplete or incorrect, the buyer may have the right to walk away from the contract.
• Buyers should always have their solicitor review the Section 32 before signing anything.

What Is a Section 32 Vendor Statement?

So, what is a Section 32? Put simply, it’s a document that tells the buyer everything they need to know about a property before they commit to buying it.

The name comes from Section 32 of Victoria’s Sale of Land Act 1962. Under this law, the seller (known as the vendor) is legally required to provide this statement to any prospective buyer before they sign the contract of sale.

You might hear people refer to it as a “vendor statement,” a “vendor’s statement,” or simply an “S32.” They’re all the same thing. Wherever the sale of the house happens, a Section 32 vendor statement is required. If the vendor doesn’t provide it, the buyer can potentially end the contract at any time before settlement.

Section 32 applies to both residential conveyancing and commercial conveyancing transactions across Victoria.

What’s Included in a Section 32 Vendor Statement?

A Section 32 vendor statement isn’t just a single page – it’s a package of documents and certificates that paint a full picture of the property. 

Here’s what it typically covers.

Title Details and Ownership

This section includes the Certificate of Title, which confirms who legally owns the property. It also reveals any encumbrances (things registered against the title), such as mortgages, caveats, easements, or restrictive covenants.

For buyers, this is where you confirm that the person selling the property actually has the legal right to sell it.

Planning and Zoning Information

The planning certificate shows the property’s current zoning under the local planning scheme – for example, whether it’s zoned residential, commercial, or mixed use. It also outlines any planning overlays (such as heritage, flood, or environmental overlays) that could affect what you can and can’t do with the property.

This matters a lot if you’re planning to renovate, extend, or develop.

Rates, Taxes, and Outgoings

The Section 32 must include certificates showing current council rates, water rates, and whether any land tax is owed. If the property is part of an owners corporation (common for apartments and townhouses), the owners corporation certificate will detail any fees, special levies, or financial issues within the body corporate.

These details help buyers understand the ongoing costs of owning the property.

Building Permits and Insurance

Any building permits issued for the property within the last seven years must be disclosed. If the seller carried out work as an owner-builder, a defects inspection report and proof of owner-builder warranty insurance are also required.

This is especially important for properties that have been renovated or extended – unapproved building work can become a major headache for the new owner.

Services, Utilities, and Authority Notices

The vendor must disclose which services are connected (water, gas, electricity, sewerage) and whether the property uses a septic system. Any notices from authorities (such as a VicRoads proposal to acquire part of the land) must also be included.

Who Prepares the Section 32 in Victoria?

Legally, the vendor is responsible for providing the Section 32 vendor statement. But in practice, it’s almost always prepared by the vendor’s solicitor or licensed conveyancer.

There’s a good reason for this. Section 32 has strict legal requirements set out in sections 32A through 32I of the Sale of Land Act 1962. Getting it wrong – even missing a single certificate – can give the buyer grounds to pull out of the sale. That’s a risk most sellers can’t afford to take.

A qualified solicitor will gather the correct certificates from relevant authorities (council, water authority, State Revenue Office, VicRoads, and others), draft the vendor’s disclosure, and make sure everything is accurate and current.

At BT Legal, our experienced property solicitors prepare Section 32 vendor statements for sellers across Melbourne. We handle the certificates, the drafting, and the details – so you can focus on the sale itself.

Why Is the Section 32 Important for Buyers?

If you’re buying property in Victoria, the Section 32 vendor statement is your primary tool for doing your homework before you sign.

It’s where you find out whether there are any debts tied to the property, restrictions that could limit how you use it, or zoning issues that might block your renovation plans. It can reveal things you’d never pick up from a physical inspection alone.

A few things buyers should pay close attention to:

• Easements or covenants that restrict what you can build or how you can use the land
• Outstanding land tax or rates that could become your responsibility
• Unapproved building works that may need to be rectified
• Owners’ corporation issues, such as large upcoming levies or ongoing disputes

It’s also worth knowing that if the Section 32 is defective (incomplete or inaccurate), the buyer may have the right to rescind the contract. And during the cooling-off period (typically three business days for private sales), you can withdraw from the contract for any reason – though a penalty may apply.

While it’s not essential, many people choose to have a solicitor review the Section 32 and contract before they sign. BT Legal offers a thorough contract review service to help buyers identify red flags early.

What Happens If a Section 32 Is Incomplete or Incorrect?

A defective Section 32 vendor statement can cause serious problems for a property sale.

If the document is missing required information, contains outdated certificates, or includes incorrect disclosures, the buyer may have the legal right to rescind (cancel) the contract. In some cases, the vendor could also face financial penalties or legal claims.

Some of the more common errors include:

• Missing or expired certificates (many have a shelf life of around three months)
• Failing to disclose known encumbrances, easements, or covenants
• Not including owner-builder information when required
• Incorrect planning or zoning details

Providing false or misleading information in a Section 32 can also constitute a breach of the Australian Consumer Law or the Fair Trading Act 1999 (Vic). In short, it’s not something to take lightly.

This is exactly why having a qualified solicitor prepare and review the Section 32 is so important for both sides of the transaction.

Section 32 Checklist for Victorian Property Sales

If you’re selling property in Victoria, here’s a handy Section 32 checklist to make sure your vendor statement covers everything required. Your solicitor will handle the details, but it helps to know what’s involved:

☐ Certificate of Title (Register Search Statement) 

☐ Planning certificate (zoning and overlays) 

☐ Land tax certificate (State Revenue Office) 

☐ Council rates certificate 

☐ Water rates certificate / water information statement 

☐ Owners corporation certificate (if applicable) ☐ Building permits issued in the last 7 years 

☐ Owner-builder defects report and warranty insurance (if applicable) 

☐ Details of easements, covenants, or other restrictions on the title 

☐ Details of any mortgages or charges over the property 

☐ Disclosure of connected services and utilities 

☐ VicRoads certificate (road proposals affecting the property) 

☐ Due diligence checklist (for residential sales) 

☐ Vendor’s signature on the completed statement

Tip: Most certificates in a Section 32 are considered current for around three months. If your property hasn’t sold within that time, your solicitor may need to order fresh certificates before the statement can be used again.

How BT Legal Can Help with Your Section 32

For Sellers

BT Legal prepares legally compliant Section 32 vendor statements for property sellers across Melbourne and Victoria. We order all required certificates, draft the disclosure, and make sure everything is accurate before your property goes to market. Our service is fixed-fee, so you know the cost upfront with no surprises.

For Buyers

Buying a property is one of the biggest financial decisions you’ll make. BT Legal’s contract review service includes a thorough review of the Section 32 to identify any red flags, missing documents, or potential issues before you sign.

We’ll help you understand everything you need to know so you can make decisions with confidence. 

Need help with a Section 32 vendor statement? Whether you’re selling and need a Section 32 prepared, or buying and want one reviewed, BT Legal’s property team is here to help. 

Get in touch for a fixed-fee quote. Contact BT Legal today.

Frequently Asked Questions About Section 32 Vendor Statements