What Is a Section 32 (Vendor Statement) and Why Is It Essential When Buying or Selling Property in Victoria?
Section 32 Vendor Statement insights from Hedwig Legal by Jack Meredith.
What Is a Section 32 Vendor Statement?
Whether you're buying or selling real estate in Victoria, you're likely to encounter a Section 32, also known as a Vendor Statement. This document is a legal requirement under Section 32 of the Sale of Land Act 1962 (Vic) and must be provided to the purchaser before signing a contract of sale.
The Section 32 statement is designed to give prospective buyers key information about the property. It helps ensure the purchaser is fully informed before entering into a legally binding agreement.
What Must Be Included in a Section 32 Statement?
A properly drafted Vendor Statement must include accurate and up-to-date disclosures about the property. Key details required in a Section 32 include:
Evidence of Title: Proof that the vendor is legally entitled to sell the property.
Financial Information: Any mortgage on the property, rental details, and outgoings such as council and water rates.
Building Insurance: Especially for structures built within the last six years (required under the Building Act 1993).
Easements, Covenants, and Restrictions: Legal rights and limitations affecting the land.
Planning Information: Including zoning, bushfire overlay, road access, and planning overlays.
Notices and Proposals: For example, notices issued by VicRoads or local councils.
Building Permits: Any permits issued within the last seven years.
Owners Corporation Details: If the property is part of a strata or body corporate.
Utility Connections: Services like gas, electricity, water, NBN, and sewerage.
Other Relevant Disclosures: Anything else that may materially affect the purchaser's decision.
Failing to disclose these matters properly in your Section 32 could result in serious legal consequences.
Consequences of Failing to Provide a Compliant Section 32
Non-compliance with Section 32 requirements can invalidate a property sale. Common issues include:
Providing false or misleading information (e.g. under-reporting council rates).
Omitting key disclosures, such as building permits or easements.
Not providing a Section 32 at all.
Failing to ensure the vendor signs the Section 32 before the purchaser signs the contract.
If the Vendor Statement is defective, the purchaser may have the right to terminate the contract before settlement. This can cause major delays, financial loss, and reputational damage for the seller.
Why Professional Legal Advice Matters
Both the Section 32 and the Contract of Sale should be prepared by an experienced property lawyer. This ensures that:
The vendor is compliant with Victorian property law;
All required disclosures are included and accurate;
Special conditions are added to protect your interests;
The risk of a failed contract is minimised.
At Hedwig Legal, we help property sellers and buyers across Melbourne prepare and review Section 32 Vendor Statements and Contracts of Sale with precision and care. Our goal is to protect your legal and financial interests at every step of the transaction.
Need Help With a Section 32?
Contact Hedwig Legal today to speak with an experienced property lawyer about preparing a compliant Section 32 Vendor Statement for your property sale.