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Could a single missing document derail your dream home purchase in Victoria?
Section 32, or vendor statement, is a vital legal requirement that can make or break a property transaction.
Mandated under Section 32 of the Sale of Land Act 1962 (VIC), this document ensures buyers have all the facts before signing a contract.
For home buyers, understanding its contents is crucial to avoid costly surprises.
This blog explains what Section 32 is, what it includes, why it matters, and how a conveyancer in Melbourne can guide you through the process.
What is Section 32 In Victoria?
Section 32 gets its name from Section 32 of the Sale of Land Act 1962 (Victoria).
This mandatory legal document, also known as a vendor statement, must be provided by sellers before any property contract is signed.
The document contains vital information about a property that cannot be discovered through visual inspection alone.
Victorian law requires sellers to disclose specific details that might affect the property’s value or your decision to purchase.
Without proper Section 32 disclosure, buyers can legally withdraw from contracts and seek compensation for any losses incurred.
Why Is Section 32 Essential For Homebuyers?
For homebuyers, Section 32 is a safeguard. It provides critical details that help you decide if a property is right for you.
Without it, you might discover problems, like planned road widening or missing utilities, after signing the contract.
Reviewing Section 32 with conveyancing services in Melbourne ensures you’re fully informed before committing.
Sellers also benefit. A properly provided Section 32 makes the contract enforceable, allowing them to retain the deposit if the buyer backs out improperly.
However, failing to provide it or including incorrect information can lead to the buyer terminating the contract or seeking compensation.
What’s Included In Section 32?
Section 32 is a collection of documents and certificates, as required by subsections 32A–32I of the Sale of Land Act.
Its contents change depending on the property’s history, such as its age or past renovations.
The following table summarises the key components:
| Information Category | Required Details |
|---|---|
| Title Information | Includes a Register Search Statement with owner details, encumbrances, and address. |
| Plan of Subdivision | Shows lot boundaries, easements, covenants, or restrictions affecting the land. |
| Utilities | Confirms connected services like water, sewerage, gas, electricity, and telephone. |
| Planning Details | Lists zoning, planning overlays, and the responsible government authority. |
| Certificates | Includes documents from council, water authority, VicRoads, and others. |
| Building Permits | Details permits issued in the last 7 years, plus any inspection reports or insurance. |
| Due Diligence Checklist | Guides buyers on issues to investigate before purchase. |
Section 32 also includes statutory warnings, seller details, mortgage information, owner-builder warranty insurance (if applicable), and notices from authorities, such as those for fencing or sewerage.
When Should You Request A Section 32?
As a homebuyer, request the Section 32 as soon as you’re serious about a property. This shows the seller you’re interested and may make an offer after reviewing the document.
Section 32 is provided during the property’s marketing campaign, giving you time to conduct due diligence. Reviewing it before signing a contract is essential to avoid surprises. Conveyancing services in Melbourne can help you understand the document and act quickly.
Who Prepares Section 32 Documents?
The seller’s legal representative, either a licensed conveyancer or solicitor, prepares Section 32. They collect information from the seller and obtain certificates from authorities like the local council, water authority, or VicRoads.
Accuracy is critical, as errors can make the document defective, potentially allowing the buyer to cancel the sale. The best conveyancer in Melbourne follows a rigorous process to ensure all details are correct, protecting the seller from legal issues.
What If Section 32 Is Incomplete?
If documents are missing, the buyer’s conveyancer or solicitor will identify the gaps during their review. They’ll request the necessary information from the seller or relevant authorities.
This step ensures you have a complete picture of the property’s status. If critical details are omitted or misleading, you may have the right to terminate the contract and seek compensation.
What Should Homebuyers Check In Section 32?
Before signing a contract, have your Section 32 reviewed by a legal professional.
The best conveyancer in Melbourne will examine:
- Title accuracy and any undisclosed encumbrances.
- Easements, covenants, or restrictions that limit property use.
- Notices from authorities, like planned infrastructure changes.
- Zoning and planning restrictions affect future development.
- Missing certificates or permits that could signal issues.
Buyers should also inspect the property to verify details, such as connected utilities or boundary lines.
This due diligence, supported by conveyancing services in Melbourne, helps you avoid costly problems after purchase.
How Does Section 32 Relate To Home Loans?
When buying a property, securing a home loan is often the next step. Section 32 can impact this process, as lenders may review it to assess the property’s value and risks, such as zoning issues or outstanding notices.
A clean Section 32 can strengthen your loan application, while problems might raise red flags. A conveyancer in Melbourne can work with your lender to address any concerns, ensuring a seamless transaction.
Consequences Of A Defective Section 32 Documents
Incomplete or misleading Section 32 documentation carries serious legal ramifications for sellers.
Buyers gain several rights when proper disclosure hasn’t occurred:
- Right to terminate the contract at any time
- Right to seek compensation for losses
- Right to negotiate reduced purchase prices
- Right to demand corrected documentation
Defective Section 32 documents can result in a complete loss of sale for sellers, plus potential financial penalties and legal action.
Need Help Reviewing Your Section 32?
At Credit Hub, we make sure your Section 32 is done right—no missing details, no nasty surprises. With over 20 years in the game, our licensed Melbourne conveyancers use smart tools, real-time updates, and personal support to help you stay in control.
Whether you’re buying your first home or your next investment, we’re here to keep it simple, legal, and stress-free. Ready for a smooth property journey? Let’s get started.
Disclaimer:
The information presented by staff or employees of Credit Hub and its associated companies is provided for general informational purposes only. We do not guarantee the accuracy, completeness, or timeliness of the data or views presented. Audience members should conduct their own research and verify any information before relying on it. Credit Hub and its associated companies are not liable for any errors or omissions, or for any actions taken based on the information presented.