Section 32 & why it’s important when buying a property

Buying and selling real estate doesn’t need to be complicated but there are a number of legal hoops that need to be jumped through to ensure the transaction happens as smoothly as possible.

Across Australia, there are different rules and regulations which underpin the purchase or sale of property, and these can differ from State to State.

That’s why it’s vitally important to always use a qualified legal practitioner to assist you, whether you’re a buyer or a seller.

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In this article, we’re going to outline the ins and outs of what’s called a Section 32 in Victoria, which is also known as a Vendor’s Statement. It’s important to understand that the laws surrounding such a statement differ across the country so if you’re buying interstate it’s imperative that you are familiar with the relevant legislation or have access to professional advice.

With this in mind, we’ll consider the situation in Victoria in particular to ensure that we keep it as simple as possible.

What is a Section 32?

The Section 32 statement is an important part of any real estate transaction. It’s a legal document given by the seller of a property to the interested buyer. The name is derived from Section 32 of the Sale of Land Act in Victoria.

This legislation requires a seller to provide specific information to a buyer about the property in question – before they sign the Contract of Sale. If they don’t then the buyer may have the right to pull out of the Contract.

Given its importance to the success of a real estate transaction, a Section 32 should be completed by a lawyer or solicitor to ensure all of the correct information is included. The last thing any seller wants is for a buyer to walk away from a deal because of a simple mistake within the Section 32.

In essence, the Section 32 statement contains information about the property’s title, including:

  • Statutory warnings to the purchaser
  • The vendor’s details
  • Title details
  • Information regarding building permits issued in the past seven years
  • Particulars of any owner-builder warranty insurance
  • If the vendor is the owner-builder who completed building works there should be a written inspection report (which lists any defects) in the Section 32
  • Particulars of any mortgages or “charges” over the land (i.e. debts charged against the land)
  • Information regarding covenants, easements and any other restrictions on title (whether or not they appear on the title)
  • Planning information, particularly where zoning restricts land use
  • Information about outgoings payable by the owner of the property
  • Disclosure of any notices or orders issued by the authorities regarding fencing, road-widening, sewerage, etc.
  • If there is access to the property by road
  • Information on services connected to the property.

Who prepares the Section 32?

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As we mentioned above, the Section 32 should always be prepared by a qualified lawyer. While this is not stated in the Sale of Land Act, the fact that it is a legal document means that a vendor must be given competent legal advice by a qualified lawyer or solicitor in order to understand the responsibilities associated with the preparation of a Section 32.

Buying and selling real estate often involves the biggest financial transaction of people’s lives and that’s why there is so much legislation surrounding the process. Also, many people only buy or sell property a few times in their lives, so it’s unlikely that they will be completely across all of the laws, which can and do change quite regularly as well.

Therefore it’s important that vendor’s understand that there are serious consequences if they don’t disclose all of the necessary information required in a Section 32 statement.

For example, a vendor who knowingly or recklessly provides false information, or fails to provide all of the information required by Section 32 commits a criminal offence and can be fined.

What am I looking for in this document?

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The Section 32 statement includes all of the pertinent information about a property, but of course each piece of intel can be mean different things to different people.

For example, if a buyer is considering developing the property then information such as zoning or easements will be of more importance to them than a purchaser who is buying it as a home or an investment.

Information to look out for in a Section 32, and why it’s important, includes:

  • Copy of the title
    The title proves that the vendor has the legal right to sell the property as well as what it actually is, such as a house, unit or vacant block of land. It should also include any easements, covenants, subdivisions or restrictions on the property, which can be as subtle as an easement related to sewerage or water usage.
  • Outgoings
    This disclosure is regarding the financial outgoings associated with the property, which can include rates or any body corporate or owners corporation fees. All buyers should be fully aware of what future regular costs they will be liable for as the new owner of the property.
  • Zoning
    As previously mentioned, zoning is important to enable the buyer to understand what can and can’t be developed on the property. For example, the property (and nearby properties) may be zoned for medium-residential development, which may mean that the new owner may soon have a construction site right next door. Buyers purchasing a residential property also need to ensure it is residentially zoned, as opposed to being commercially zoned. The type of residential zoning, whether it’s neighbourhood or general, should also be noted.
  • Council valuation
    While this isn’t always included in a Section 32, buyers need to be aware that a council valuation may not necessarily reflect the property’s market value. The council valuation uses a different formula than a standard valuation and can differ significantly from its true market value. Focusing too much on the council number, and trying to negotiate because of it, will generally not amount to much more than a headache that goes nowhere at all.
  • Building permits issued in the past seven years
    Building approvals would have been granted for properties with works completed recently, for example a new bathroom or kitchen. When the information is not included in the Section 32, it should raise questions about who completed the renovations and why building permits hadn’t been obtained. If the vendor is an owner-builder who completed the works, there should be an inspection report, insurance (if the value of the work is over a set figure) and certain warrantees.

Intuitive Finance – the smart choice

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The world of home ownership and property investment can be complex but it’s doesn’t have to be difficult.

When you’re involved in one of the biggest financial transactions of your life it makes sense that you have the right professionals on your side – and this is especially true when it comes to understanding the Section 32 statement or equivalent in other States and Territories.

Ensuring you have the right legal advice about the Section 32 from the outset will help to prevent any problems down the track.
The world of banking and finance can be a pretty daunting one for both novice and sophisticated investors and since our establishment in 2002 we’ve focused on providing outstanding service and business standards.

This approach was vindicated when we were named Victoria’s favourite mortgage broker at the 2015 Investors Choice Awards.

Understanding the ins and outs of the Section 32 statement is paramount for anyone buying or selling property today. So why now contact Intuitive Finance today to ensure you have the right information and expert support on your side no matter what stage of the property ownership journey you are on?

Discuss your specific needs & formulate the right strategy for you. Get in touch to organise your complimentary 60min session today!


The financial industry is a dynamic industry – continually evolving and changing. Whilst every effort has been made to ensure its accuracy, no guarantee is given that the information contained herein is currently correct. To the extent permitted by law, Intuitive Finance accepts no responsibility or liability for any loss or damage what so ever (including direct and indirect) to any person arising from the use or reliance on the information detailed here.

Andrew Mirams

Andrew Mirams

Andrew Mirams is the Managing Director of Intuitive Finance and is a highly qualified mortgage advisor who holds dual diplomas in Financial Planning (Financial Services) and Banking and Finance (Mortgage Broking). Andrew’s expertise covers all aspects of lending for a diverse range of applications – from first home buyer loans or property upgrader loans, property investor loans, expatriates and loans for self-employed. With almost 30 years of experience, Andrew has been acknowledged by the mortgage industry as one of its best performers with multiple awards including regularly featuring in both the top 100 mortgage brokers list and Top 50 Elite business writers. Andrew was voted Victoria's favourite Mortgage Broker at the 2015 Investors Choice Awards, and won again for the same category at the 2017 Better Business Awards. The team at Intuitive Finance has also figured prominently by winning the 2016 "Best Independent Office (<5 brokers)" and "Best customer Service" Awards, and more recently at the 2017 MFAA National Awards, they also took out the "Best Customer Service" Award, a recognition which speaks for itself! Visit Intuitive Finance for more information.
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[…] 32, or vendor’s statement, is a legal document in Victoria that requires certain legislated information to be disclosed to […]


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