Buying or selling a property is one of the most significant financial decisions most Australians will ever make. With so much at stake, it is vital that all parties are fully informed about the property before a contract of sale is signed. This is where the Section 32 Statement, also known as the Vendor’s Statement, plays an essential role under Property & Leasing Law.

In this article, we explore what a Section 32 is, why it matters in property sales, and how it protects both buyers and sellers.

What is a Section 32 Statement?

A Section 32 Statement derives its name from Section 32 of the Sale of Land Act 1962 (Vic). It is a legal document that a seller (vendor) must provide to a prospective buyer before a contract of sale is signed.

The statement contains disclosure information about the property, such as:

• Title details - proof of ownership and any covenants or easements
• Mortgages and charges - whether the property has financial liabilities
• Zoning and planning restrictions - what the property can and cannot be used for
• Outgoings - rates, taxes, and levies that apply
• Services connected - electricity, gas, water, sewerage, and telecommunications
• Notices or building approvals - any existing notices from authorities

The purpose of the statement is to ensure the buyer is fully informed about matters that could affect their decision to purchase the property.

Why is a Section 32 Important in Property Sales?

The Section 32 is more than just a formality — it is a safeguard for buyers and a legal requirement for vendors.

Protecting Buyers’ RightsPurchasing property involves significant financial investment. A Section 32 ensures that buyers are aware of any restrictions, encumbrances, or liabilities attached to the property. Without this disclosure, a buyer could face unexpected costs or legal disputes later.For example, if the land is subject to an easement that restricts building, or if a large unpaid council rate exists, the buyer must know this information before committing to the purchase.

Ensuring Vendor ComplianceFor sellers, preparing a Section 32 is not optional. Failure to provide an accurate statement may allow the buyer to withdraw from the contract, even after signing. Vendors must disclose all required details honestly and completely to avoid legal consequences.

Promoting Transparency in the Property MarketThe Section 32 contributes to fairness and transparency in the property market by ensuring both parties are negotiating on an equal footing. It reduces the risk of disputes, mistrust, or claims of misrepresentation later in the process.

Legal Requirements under Property & Leasing Law

Under Victorian law, a Section 32 must be provided to the buyer before the contract of sale is signed. If it is not, the buyer has the right to rescind (cancel) the contract within a set timeframe.

Inaccurate or misleading information in the statement can also have serious legal consequences. For instance:

• A buyer may sue for damages if the vendor fails to disclose significant details.
• A court may declare the contract void.
• The vendor may face financial penalties for non-compliance.

This highlights the importance of having a Section 32 prepared by an experienced property lawyer or conveyancer, ensuring all disclosures are accurate and legally compliant.

Who Prepares a Section 32?

Generally, a conveyancer or property lawyer will prepare the Section 32 on behalf of the vendor. Given the legal implications of omissions or errors, professional preparation is strongly recommended.

Buyers, on the other hand, should also seek independent legal advice to carefully review the statement before signing any agreement. This step ensures that they fully understand the legal and financial implications of the purchase.

Common Issues Found in Section 32 Statements

Some of the most frequent problems in Section 32 Statements include:

• Missing or incomplete zoning certificates
• Failure to disclose outstanding rates or charges
• Undisclosed building permits or notices from councils
• Incorrect title information
• Lack of clarity on connected services

These errors can significantly impact a property transaction. For example, a buyer who discovers after settlement that water is not connected may face expensive installation costs. Ensuring accuracy avoids disputes and protects both parties.

Section 32 Beyond Victoria

While the Section 32 Statement is specific to Victoria, other states and territories in Australia also require disclosure documents in property transactions. Although the names differ — such as a Vendor Disclosure Statement in New South Wales — the principle remains the same: buyers have a right to be informed.

This consistency reflects the broader role of Property & Leasing Law across Australia in ensuring consumer protection, transparency, and fairness in the property market.

How Buyers and Sellers Can Protect Themselves

For Sellers:

• Engage a lawyer or licensed conveyancer early to prepare the Section 32
• Ensure all information is accurate and up-to-date
• Disclose all relevant details, even if they seem minor

For Buyers:

• Never sign a contract without reviewing the Section 32 carefully
• Seek advice from a property lawyer to interpret the information
• Raise questions about any unclear or concerning details

By following these steps, both parties can reduce risks and move forward with confidence.

The Section 32 Statement is a cornerstone of Victorian property sales and an essential part of Property & Leasing Law in Australia. It ensures transparency, protects buyers from hidden risks, and requires sellers to meet their disclosure obligations.

At New South Lawyers, our experienced Property & Leasing Law team can help you prepare, review, and understand Section 32 Statements. We ensure that your property transaction is legally sound, transparent, and stress-free.

Contact New South Lawyers today to speak with one of our property law specialists and protect your interests in your next property sale or purchase.