Section 32 Vendor Statements Explained: What Every Victorian Seller Must Know
In Victoria, a vendor must provide a Section 32 Vendor Statement (also called a Vendor's Statement) to a prospective buyer before a contract of sale is signed. The document takes its name from section 32 of the Sale of Land Act 1962. Getting it wrong — or omitting required information — can give the buyer the right to rescind the contract.
What must be included
The Section 32 must include details of the title, including any mortgages, caveats, or encumbrances; outgoings such as council rates and owners corporation fees; zoning and planning information; building permits issued in the last seven years; and any notices or orders affecting the property.
Owners corporation information
If the property is part of an owners corporation (formerly body corporate), the Section 32 must include the owners corporation certificate, which sets out fees, any special levies, and the financial position of the corporation. Obtaining this certificate takes time, so it should be ordered early in the preparation process.
Consequences of a defective statement
If the Section 32 contains a false statement, or omits information that is required to be included, the buyer may have the right to rescind the contract before settlement. This right can be exercised even after the buyer has paid a deposit. The consequences for a seller can be significant.
Who prepares the Section 32?
The Section 32 is prepared by the vendor's conveyancer or solicitor. It requires searches of various government registers and databases, which take time and incur costs. Vendors should engage their conveyancer well before listing the property to ensure the statement is ready when a buyer is found.
Reviewing the Section 32 as a buyer
Buyers should always have the Section 32 reviewed by their own conveyancer before signing the contract. A conveyancer can identify issues that may not be apparent to a layperson — such as restrictive covenants, easements, or planning overlays that could affect the use of the property.
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