How to read a Section 32 Vendor's Statement. The Victorian buyer's essential pre-contract document.

The Section 32 Vendor's Statement is Victoria's mandatory pre-contract disclosure document. Every Victorian property sale must include a Section 32 statement provided to the buyer before contract. The statement contains the most important pre-purchase information about the property.

For buyers, reading the Section 32 carefully is essential. Most of the issues that emerge post-purchase were disclosed in the Section 32 - the buyer just didn't read it carefully. This post explains the 11 standard sections, what to look for in each, and the red flags.

What the Section 32 covers

The Section 32 is structured around 11 standard areas of disclosure mandated by the Sale of Land Act 1962 (Vic):

1. Vendor identification
2. Title and ownership details
3. Mortgages and encumbrances
4. Easements, covenants, and other restrictions
5. Planning information
6. Outgoings (rates, taxes, charges)
7. Services
8. Notices and orders
9. Building permits and warranties
10. Owners corporation information (where applicable)
11. Other prescribed information

The statement must be in prescribed form. Variations from the form may render the statement defective.

Section 1: vendor identification

What's included: full name and address of the vendor, capacity in which they sell (individual, executor, trustee, etc.).

What to check

• Vendor names match the title
• Capacity matches (executor sales have specific requirements)
• Service address for notices

Red flags

• Vendor identification incomplete
• Executor or trustee sale without proper authority documentation
• Foreign vendor without appropriate documentation

Section 2: title and ownership

What's included: certificate of title number, registered owners, lot and plan numbers.

What to check

• Title number matches the property
• Registered owners match Section 1
• Lot dimensions match advertised dimensions
• Plan reference for boundary verification

Red flags

• Lot dimensions different from marketing
• Multiple registered owners with different addresses (potential dispute)
• Old title (some older titles have specific provisions)

Section 3: mortgages and encumbrances

What's included: current mortgages and other registered financial encumbrances.

What to check

• Existing mortgage will be discharged at settlement
• No other financial encumbrances to be assumed
• No outstanding judgements

Red flags

• Multiple mortgages (potential financial distress)
• Caveat from third parties
• Outstanding judgement

Section 4: easements, covenants, and other restrictions

What's included: all easements, restrictive covenants, and other registered restrictions.

What to check

• All easements identified
• Easement locations on attached plan
• Restrictive covenants described in full
• Implications for intended use

Red flags

• Substantial easements crossing buildable area
• Restrictive covenants conflicting with intended use
• Restrictive covenants requiring specific construction (style, materials)
• Easements with maintenance obligations
• Right-of-way easements (especially where shared with neighbours)

Section 5: planning information

What's included: zoning, overlays, planning controls applicable to the property.

What to check

• Zone classification (residential, commercial, mixed, etc.)
• Height limits
• Overlays (heritage, environment, flood, bushfire, etc.)
• Specific planning restrictions
• Any current planning permits or applications

Red flags

• Heritage Overlay (especially individual listing)
• Substantial flood overlay (LSIO, SBO)
• Bushfire Management Overlay
• Environmental Significance Overlay
• Vegetation Protection Overlay
• Any planning permit application currently in process

Section 6: outgoings

What's included: council rates, water rates, owners corporation fees, land tax, other outgoings.

What to check

• Current rates and fees
• Whether amounts are reasonable for property type
• Whether all outgoings are current (no arrears)
• Special rates or levies

Red flags

• Outgoings substantially higher than typical for property type (may indicate hidden cost)
• Substantial arrears
• Recent special levies (suggests financial issues)
• Pending rate or land tax revaluation

Section 7: services

What's included: utility services available to the property (water, sewer, electricity, gas, telecoms).

What to check

• All services connected
• Service quality (NBN type for telecoms)
• Sewer service (mains vs septic)
• Water service (mains vs tank)
• Gas service (mains vs bottled)

Red flags

• Services not connected (substantial connection cost)
• Septic tank (maintenance and capacity considerations)
• Tank water only (capacity and quality considerations)
• Limited NBN (FTTN or worse)

Section 8: notices and orders

What's included: any notices, orders, or directives from authorities affecting the property.

What to check

• Building orders
• Council orders
• EPA notices
• Planning enforcement
• Any pending action

Red flags

• Active building order requiring rectification work
• Council notice requiring action
• EPA notice (contaminated land or pollution issue)
• Planning enforcement action

Section 9: building permits and warranties

What's included: information about building permits issued in last 7 years and any warranties affecting the property.

What to check

• Building permits for recent works
• Whether works have certificate of occupancy
• Warranties from builders or manufacturers
• Compliance with permits

Red flags

• Recent works without building permit
• Permits without certificate of occupancy
• Owner-builder work without certificates
• Substantial works with no warranty

Section 10: owners corporation (where applicable)

What's included: for strata or community title properties, detailed owners corporation information.

What to check

• Owners corporation registration
• Current fees (annual amount)
• Recent special levies
• Insurance details
• Capital works plan
• Recent meeting minutes
• Any disputes

Red flags

• Substantial recent special levies
• Pending major works without funding
• Insurance valuation out of date
• Active disputes or litigation
• Owners corporation dysfunction

Section 11: other prescribed information

What's included: any other matters required by regulation.

What to check

• Cooling-off period statement
• Foreign investment compliance
• Insurance information

How to read the Section 32 effectively

For most efficient review:

Step 1: read once through quickly

Get the overall picture of what's disclosed.

Step 2: identify any items that warrant follow-up

Flag items that require additional investigation, professional advice, or document review.

Step 3: cross-reference with marketing

Compare disclosed information with what the agent has marketed. Identify discrepancies for clarification.

Step 4: detailed review of flagged items

Spend additional time on the flagged items. May require:

• Title search for easement detail
• Planning portal search for overlay implications
• Owners corporation document review
• Specialist advice (heritage, planning, building)

Step 5: integrate with other due diligence

The Section 32 is one input. Combine with building inspection, comparable sales analysis, neighbourhood research for complete picture.

Common Section 32 issues

Three issues that recur in Section 32 review:

Issue 1: heritage overlay missed by buyer

Buyer fails to read planning section carefully and discovers heritage overlay post-purchase. Substantial limitations on planned renovations.

Issue 2: easement not understood

Buyer fails to understand easement implications until planning renovation. Easement makes planned extension impossible or expensive.

Issue 3: owners corporation issues missed

Buyer reviews only the headline owners corporation fees. Misses pending special levy, dispute, or capital works requirement that emerges post-purchase.

The legal status of disclosure

Three legal considerations:

Consideration 1: defective Section 32

A defective Section 32 (incomplete, missing prescribed information, incorrect) may give the buyer right to rescind the contract. This must typically be acted upon before settlement.

Consideration 2: omitted disclosure

Information that should have been disclosed but was not may give the buyer legal recourse. Statutory and common law remedies depend on circumstances.

Consideration 3: vendor knowledge

The vendor's obligation is to disclose what they know. Items the vendor genuinely did not know may not be required disclosure (with exceptions).

For legal questions on Section 32 adequacy or disclosure issues, qualified legal advice is essential.

How to address issues identified

If Section 32 review identifies concerns:

Response 1: clarification

Ask the agent or vendor for clarification on specific items. Often clarification resolves apparent concerns.

Response 2: additional investigation

For items requiring further investigation (planning portal search, title search, owners corporation document review), undertake the investigation before contract.

Response 3: condition the offer

Include conditions in your offer that address specific concerns (subject to satisfactory building inspection, subject to owners corporation review, etc.).

Response 4: price adjustment

For confirmed issues, negotiate price adjustment reflecting the buyer's assumption of the issue.

Response 5: walk away

For substantial issues that cannot be resolved or appropriately priced, walk away. Better to walk away than to inherit substantial undisclosed liability.

The Section 32 in the broader process

The Section 32 typically arrives:

• Before contract signing for private treaty sales
• Before auction for auction sales
• Available from agent on request for serious buyers

The timing means review must occur before commitment. Buyers planning to bid at auction must complete Section 32 review before auction day.

• Visual mapping of the overlay on the lot
• Specific BAL implications
• Construction cost implications
• Mitigation pathway

This complements the formal disclosure with practical understanding.

For Victorian buyers, the Section 32 is the most important pre-contract document. Reading it carefully is essential. The 1-2 hours required typically saves substantially more than the time spent. For buyers without legal expertise, having a conveyancer or lawyer review the Section 32 provides additional protection at modest cost ($300-800 typical). The Section 32 review is not optional for serious buyers. It is the foundation of informed Victorian property purchase decisions.