2 min read

What is a Section 32 Vendor Statement and why it matters for both vendors and purchasers in Victoria

Picture of Lindel Enticott Lindel Enticott Nov 10, 2025 1:16:06 PM

Buyer Due Diligence Contract of Sale Victoria Buying Selling FAQ Vendor Statement (section 32) Searches Contract Review
What is a Section 32 Vendor Statement and why it matters for both vendors and purchasers in Victoria
 
 In Victorian property transactions, one document can make or break the deal: the Section 32 Vendor Statement.
 
Whether you're preparing to sell or considering a purchase, understanding this legal requirement is essential. Transparency isn’t optional in Victoria, it’s legally enforced. At Prepared, we help our clients navigate the Section 32 with clarity, speed, and certainty.
 

What is the ‘Section 32’ Vendor Statement?

A Section 32 Vendor Statement (often called just a "Section 32") is a legal disclosure document that a vendor (seller) must provide to a purchaser before they sign a Contract of Sale. It’s named after Section 32 of the Sale of Land Act 1962 (Vic) and is mandatory for all real estate sales in Victoria.

This isn’t just paperwork, it’s the legal backbone of the sale. If it’s wrong or incomplete, vendors risk the purchaser walking away (and being left with expenses).

What is disclosed in the Vendor Statement?

The Section 32 must disclose a wide range of prescribed property matters, including (not limited to):

  • Title information confirming the vendors estate and legal right to sell
  • Easements, covenants, and restrictions affecting the land and whether they have been complied with or breached
  • Planning and zoning details, including overlays or bushfire designations
  • Outgoings and rates (such as council, water, land tax, owner's corporation levies)
  • Unconnected services like electricity, telephone, water, gas, and sewerage
  • Owners Corporation (OC) details, if applicable
  • Notices or orders from authorities (such as proposed roadworks or building non-compliance notices)
  • Certain Insurance policies, such as owner-builder warranty if relevant
  • It may also include disclosure of material facts that may influence a buyer’s decision (like prior flooding or serious defects)

These disclosures are backed by certificates from relevant authorities, which can take up to 10 business days to obtain, making early preparation critical.

Why the section 32 matters for vendors

Risk Mitigation and legal compliance

In short, you can’t sell without it.

  • In addition to legal penalties, a missing or incorrect Section 32 gives buyers the right to cancel, even days before settlement in an otherwise unconditional deal.

  • If contracts are ended due to defective or insufficient disclosure, vendors can expect to be liable for costs such as legal and conveyancing expenses and real estate agent fees and commissions (if applicable).

Disclose everything up front, be compliant and you protect yourself from disputes later. Surprises at settlement cost more than just money, they can cost you the deal.

Secure faster offers

  • Purchasers move quicker when the Section 32 is ready. If you delay, so do they.

  • Purchasers cannot make a legally binding offer until the section 32 is provided to them and in the meantime, these purchasers may keep looking elsewhere and keeping their options open.

  • Failure to provide a s32 on request, may cast doubt in the purchasers mind. Many purchasers express concerns of ‘real estate agent tactics’ and ‘game play’ when they are left to feel strung along.
Signing contract two people

Why it matters for purchasers

The Section 32 review forms part of your due diligence. It is your window into what you’re really buying (not just what you have physically inspected).

If something in the statement is missing or misleading, you may have the right to walk away, even after signing.

The right legal review of your section 32, supplementing your own due diligence helps you move forward decisively. No guesswork. No regrets.

How we help

We prepare compliant, comprehensive Section 32 statements with speed and precision, so vendors can list with confidence and buyers can assess risk from the outset. We order proper certificates and searches so that purchasers can trust your disclosure and remove hesitancy.

For Purchasers, we review the section 32 and explain to you in clear terms what this means for you, and what further checks you should make when purchasing.

Selling? Don’t wait for a buyer to ask, have your Section 32 ready first.
Buying? Let us review it before you sign anything.

When it comes to the section 32, being prepared isn’t just smart, it’s required.

The information is general in nature and does not constitute legal advice. If you are buying or selling, please contact us to request legal advice.