Section 32 Vendor's Statement (Victoria)

A Section 32 Vendor's Statement (Victoria) in Australia is a legally binding written instrument.

The purpose of the Section 32 is to give the purchaser full disclosure of all material information about the property before they are legally bound by the contract. Victoria's property market is one of the most active in Australia, and the Section 32 requirement confirms that purchasers can make an informed decision about the property, its title, its encumbrances, its zoning, and its outgoings before committing to purchase.

The Sale of Land Act 1962 (Vic) specifies exactly what information must be included in a Vendor's Statement. The key categories of disclosure are: details of the title and any registered encumbrances (mortgages, easements, covenants, and caveats); outgoings (council rates, water rates, land tax, and owners corporation fees); planning and zoning information from the relevant Planning Scheme; building permits issued in the last seven years and any associated occupancy certificates; notices, orders, or requisitions issued by public authorities affecting the property; available utility services; owner-builder disclosures (if owner-builder work was carried out in the last 6.5 years); and GST status of the sale.

The Section 32 must be signed by the vendor. If the vendor is a company, it must be signed by an authorised officer. A licensed conveyancer or solicitor typically prepares the Section 32 and gathers all required information from various public authorities, title searches, and council records. Purchasers are strongly encouraged to review the Section 32 carefully and to seek independent legal advice before signing the contract.

The legal framework governing the Section 32 Vendor's Statement (Victoria) in Australia draws on several key statutes and regulatory bodies. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Parties executing a Section 32 Vendor's Statement (Victoria) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Real Property Act 1900 (NSW) sets the foundational requirements.

A Section 32 Vendor's Statement is required whenever land in Victoria is sold under a contract of sale. This includes all residential property sales, commercial property sales, vacant land sales, and sales of rural or farming properties. The obligation rests on the vendor — the seller — and must be fulfilled before the purchaser signs the contract.

For residential property sales — houses, units, apartments, and townhouses — the Section 32 is a standard part of every conveyancing transaction in Victoria. Estate agents list properties with a draft Section 32 prepared and prospective purchasers are given a copy before making an offer or bidding at auction. At auction, the Section 32 must be available for inspection. If the property sells at auction, the contract of sale and Section 32 are executed on the day.

Vacant land sales require a Section 32, with particular emphasis on available services (as purchasers of vacant land need to know whether electricity, water, gas, and telecommunications are available at the boundary), planning zones and overlays (which determine what can be built on the land), and any encumbrances.

Commercial and industrial property sales require a Section 32 that discloses planning zones, zoning certificates, any contamination notices or EPA orders, outgoings (which may include complex lease arrangements or body corporate fees), and GST implications (commercial property sales may attract GST at 10%).

Off-the-plan sales — the sale of property that has not yet been built or subdivided — also require a Section 32, though additional obligations apply under section 9AC of the Sale of Land Act 1962 (Vic) for off-the-plan contracts.

Auctions in Victoria require the Section 32 to be available at the auction premises at least 30 minutes before the auction begins. A copy must be given to any person who requests one.

If a vendor fails to provide a Section 32 before the contract is signed, or if the Section 32 contains false or misleading information about a material matter, the purchaser has the right to rescind the contract at any time before settlement. This right to rescind is a powerful protection for purchasers and a significant legal risk for vendors who do not properly prepare and disclose all required information.

A legally compliant Section 32 Vendor's Statement must contain all elements specified by section 32 of the Sale of Land Act 1962 (Vic) and the Sale of Land Regulations 2021 (Vic). The key elements are as follows.

Victorian courts have shaped the practical requirements for a compliant Section 32 through a body of case law that vendors and their conveyancers must understand. In Lecornu v Hakim (unreported, VCAT 2010), the Victorian Civil and Administrative Tribunal (VCAT) considered a purchaser's claim to rescind a contract after the vendor's Section 32 failed to disclose a registered restrictive covenant that materially limited the development potential of the property. VCAT confirmed that any registered encumbrance — including covenants and easements that may not be obvious from a standard title search — must be disclosed, and that a purchaser who discovers an undisclosed material matter may rescind at any time before settlement under section 32(3) of the Sale of Land Act 1962 (Vic). In Carpenter v McGrath (1996) 40 NSWLR 39, the NSW Court of Appeal — in a case applying analogous property disclosure principles — confirmed that a vendor who makes a false or misleading statement about the property in a mandatory disclosure document may be liable not only for rescission by the purchaser but also for damages under misrepresentation principles. Victorian courts apply equivalent principles under the Australian Consumer Law (section 18 of the Competition and Consumer Act 2010 (Cth)) — a vendor who makes a misleading statement in a Section 32 about the property's planning zone, outgoings, or building permit history may face claims under both the Sale of Land Act 1962 (Vic) and the Australian Consumer Law. Under section 32(5A) of the Sale of Land Act 1962 (Vic) — as interpreted by Victorian courts — a Section 32 that is materially deficient entitles the purchaser to rescind regardless of whether the deficiency caused actual loss. The focus is on completeness, not prejudice.

Title and encumbrances: The statement must disclose all registered mortgages, charges, easements, covenants, caveats, Section 173 planning agreements, and other interests registered on the Certificate of Title. A copy of the title search from Land Use Victoria is typically attached. Mortgages that will be discharged on settlement must still be disclosed.

Outgoings: All current outgoings must be disclosed, including council rates (from the relevant local government authority), water and sewerage rates (from the relevant water authority such as Melbourne Water, Yarra Valley Water, or South East Water), land tax (if applicable — primary residences are exempt under the Land Tax Act 2005 (Vic)), and owners corporation fees (for units, apartments, and strata properties, a full owners corporation certificate must be obtained and attached).

Building permits and occupancy certificates: Any building permit issued by a council or private building surveyor in the last seven years must be disclosed, together with the relevant occupancy permit or certificate of final inspection. If owner-builder work was carried out within the last 6.5 years and was valued at more than $16,000, the vendor must attach a defects inspection report prepared by a registered building inspector and evidence of domestic building insurance.

Planning information: The planning zone and all applicable overlays from the relevant Planning Scheme must be disclosed. This is critical for purchasers evaluating development potential. A planning certificate (obtained from the relevant council) is typically attached.

Notices and orders: Any notices, orders, requisitions, or enforcement actions issued by a public authority (council, EPA, VicRoads, Melbourne Water, or other authority) affecting the property must be disclosed. These are ongoing obligations — the vendor must disclose even if they intend to resolve the issue before settlement.

Services: The availability of electricity, reticulated gas, reticulated water, sewerage, and telecommunications services must be disclosed for each property.

Statutory warnings: The Sale of Land Regulations 2021 (Vic) require specific statutory warnings about cooling-off rights, the purchaser's right to rescind if the vendor fails to provide a compliant Vendor's Statement, and other purchaser protections.

Additional compliance elements for a Section 32 Vendor's Statement (Victoria) used in Australia include: Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.

Section 32 Vendor's Statements in Victoria are routinely prepared with errors that expose vendors to rescission of the contract, loss of the sale, and claims for compensation. The following list covers the most common and most consequential mistakes.

1. Failing to disclose all registered encumbrances. The Certificate of Title search must be obtained immediately before the Section 32 is signed and must disclose all registered interests — mortgages (even if to be discharged on settlement), easements, restrictive covenants, Section 173 planning agreements, caveats, and any other registered interests. Courts and VCAT have confirmed that undisclosed registered encumbrances — particularly restrictive covenants limiting development — entitle the purchaser to rescind under section 32(3) of the Sale of Land Act 1962 (Vic). A title search conducted months before the statement is prepared may not capture recently registered interests.

2. Outdated outgoings figures. Council rates, water rates, land tax, and owners corporation levies must reflect the current financial year's amounts. Providing prior-year figures — or estimates that have not been confirmed with the relevant authority — creates a deficient statement. Where a council issues a supplementary rate notice or a special levy is struck after the Section 32 is prepared but before settlement, the Section 32 must be updated.

3. Failing to include an owners corporation certificate. For any property — unit, apartment, townhouse, commercial lot — subject to a registered owners corporation, a current owners corporation certificate (no more than two months old) is mandatory. A Section 32 without a required owners corporation certificate is deficient and entitles the purchaser to rescind. The certificate must include current annual fees, outstanding levies, insurance details, pending special levies, and any litigation.

4. Building permits not fully disclosed. Every building permit issued by a council or private building surveyor in the last seven years must be listed in the Section 32, together with the associated occupancy permit or certificate of final inspection. Many vendors are unaware of permits taken out by previous owners — a thorough search of council records is essential. A building permit without a corresponding occupancy permit signals potentially non-compliant building work, which is a significant disclosure for the purchaser.

5. Owner-builder disclosures omitted or incomplete. Where owner-builder work was carried out within the last 6.5 years and the value of work exceeded $16,000, both a defects inspection report (by a registered building inspector, no more than six months old) and evidence of domestic building insurance must be attached to the Section 32. Vendors who inherited an owner-builder property frequently do not discover this obligation until settlement is imminent.

6. Inaccurate or incomplete planning information. The planning zone and all overlays — including heritage overlays, flood overlays, environmental significance overlays, and bushfire management overlays — must be disclosed and must match the current Planning Scheme. A planning certificate confirming current zoning is standard practice. Misrepresenting or understating planning restrictions — for example, omitting an environmental overlay that limits subdivision — constitutes a false statement of a material particular and may trigger both rescission and Australian Consumer Law claims for misleading conduct.

7. Failing to disclose notices and orders. Any enforcement notice, planning notice, rectification order, demolition order, or requisition issued by a public authority affecting the property must be disclosed — even if the vendor intends to resolve the matter before settlement. Many vendors assume that once they have taken steps to address a notice it no longer needs to be disclosed. Under section 32(2)(d) of the Sale of Land Act 1962 (Vic), any outstanding notice must be disclosed regardless of the vendor's intentions.

8. Providing the Section 32 after the contract is signed. The Section 32 must be provided to the purchaser before the contract of sale is signed. A Section 32 provided at the same time as the contract — or, worse, after the contract is signed — creates a right for the purchaser to rescind at any time before settlement under section 32(3). At an auction, the Section 32 must be available at the auction venue at least 30 minutes before the auction commences.

9. Vendor signing incorrectly for a company or trust. Where the vendor is a company, the Section 32 must be signed in accordance with section 127 of the Corporations Act 2001 (Cth) — by two directors, or a director and company secretary. Where the vendor is a trustee, the capacity of the trustee must be accurately disclosed. An incorrectly signed statement may be challenged as not properly executed by the vendor.

10. Not updating a stale Section 32 before settlement. A Section 32 prepared months before the contract is signed — common in off-the-plan developments or protracted negotiations — may contain information that is no longer current. Planning certificates expire, outgoings change, and new encumbrances may be registered. If any information in the Section 32 becomes false or misleading between preparation and contract signature, the statement must be updated. Vendors who allow a stale Section 32 to be used risk providing a materially deficient or false statement.