Section 32 Vendor Disclosure Statement

A section 32 is the vendor statement that a seller of land in Victoria must prepare under section 32 of the Sale of Land Act 1962 (Vic). It sets out the key legal and financial facts about the property, such as the title, mortgages, easements, planning controls, rates and building permits, so a buyer knows what they are getting before they sign the contract.

If you are selling property in Victoria, the Section 32 Vendor Statement is one of the most important documents in your sale. Required under the Sale of Land Act 1962 (Vic), it gives buyers key information about the property before they sign — and a mistake can allow a buyer to walk away from the contract.

What is a Section 32 vendor statement?

A Section 32 statement is a disclosure document that must be given to a buyer before they sign the contract of sale. It is signed by the vendor and is separate from the contract itself, although the two are usually provided together.

What must be in a Section 32?

The Act sets out what must be disclosed. The current form of vendor statement is grouped under headings such as financial matters, insurance, land use, notices, building permits, owners corporation, Growth Areas Infrastructure Contribution, services, title and subdivision. In practice it typically includes:

• Financial matters — mortgages or charges that will not be discharged at settlement, and amounts owing to rating authorities.
• Insurance — details of any insurance if the buyer takes on risk before settlement, and owner-builder warranty insurance where relevant.
• Title information — a copy of the title, mortgages, easements, covenants and caveats.
• Planning and zoning — the zone and any overlays affecting use of the land.
• Outgoings — council rates, water charges, land tax and owners corporation fees.
• Notices and orders — building orders, government notices and proposals affecting the land.
• Building permits — permits issued for building work in the last seven years, and owner-builder information.
• Services — whether electricity, gas, water, sewerage and telephone are connected.
• Owners corporation — certificate and details, if the property is part of one.
• Growth Areas Infrastructure Contribution (GAIC) — whether the land is affected, for land in Melbourne’s growth areas.
• Subdivision — details of any plan of subdivision, including for off-the-plan sales.
• Due diligence checklist — the Consumer Affairs Victoria checklist must be made available to buyers.

How the rules have changed

Section 32 was restructured from 1 October 2014. Since then, the vendor statement has been organised under themed headings, and sellers (or their agents) must make the Consumer Affairs Victoria due diligence checklist available to prospective buyers, for example at open inspections. The Sale of Land Amendment Act 2019 (Vic) then tightened the rules around off-the-plan sunset clauses and made it an offence to knowingly conceal a material fact about the land.

Further changes are coming. The Consumer Legislation Amendment Act 2026 (Vic) will require the vendor statement to be available to prospective buyers at least 14 days before an auction or fixed-date sale (or before a contract is signed in other sales). Those changes start on a date to be proclaimed, and no later than 1 June 2027. Sellers planning a campaign should allow extra time to prepare the statement.

Why an accurate Section 32 matters

• Legal compliance — the Sale of Land Act requires it for most sales of land in Victoria.
• Buyer confidence — clear disclosure builds trust and reduces disputes.
• Protecting your sale — if the statement is missing, incomplete or inaccurate, the buyer may be able to rescind the contract before settlement, or claim compensation.

You also need to consider material facts that a reasonable buyer would want to know.

How long does a Section 32 last?

A Section 32 doesn’t have a formal expiry date, but the certificates and searches in it can quickly become out of date. If your property stays on the market for a few months, or something changes — such as a new planning overlay, permit or notice — the statement should be updated before a buyer signs.

What matters legally is that the statement is accurate and complete when the buyer signs. Rates and water certificates show amounts at a point in time, and a new notice, permit, planning scheme amendment or mortgage can arise at any stage. In practice:

• if the property sells within a few weeks of the statement being prepared, it is usually fine as it is;
• if the campaign drags on, or the property is relisted months later, ask your lawyer to re-run the key searches; and
• if anything changes that you know about, tell your lawyer straight away so the statement can be corrected before anyone signs.

Common Section 32 mistakes

• missing encumbrances such as easements or covenants;
• out-of-date certificates;
• failing to disclose building work, permits or owner-builder status;
• not disclosing notices or proposals affecting the land;
• DIY preparation without legal review.

Case example

In ZX Group Pty Ltd v LPD Corporation Pty Ltd [2013] VSC 542, the Supreme Court considered a vendor’s failure to disclose required information in the Section 32 statement. The case highlights why accurate and complete disclosure is essential to avoid a sale being put at risk.

How much does a Section 32 cost in Victoria?

There is no set price for a Section 32 in Victoria. The total cost is made up of two parts:

• Search and certificate fees — the fees charged by government bodies and other authorities for the title search, plan, planning certificate, land information (rates) certificate, water information statement and, where relevant, owners corporation certificate, GAIC and other searches. These are passed on at cost.
• Professional fees — the lawyer’s or conveyancer’s fee for ordering and reviewing the searches, preparing the statement and contract, and advising you.

What affects the cost of a Section 32:

• Property type — a simple house on its own title usually needs fewer searches than an apartment with an owners corporation, a rural property or commercial land.
• Title complexity — multiple titles, unusual easements or covenants, or an old general law title take more work.
• Building history — recent building work, owner-builder work or outstanding notices need extra checks.
• Updates — if the property is on the market for a long time, searches may need to be re-ordered.

Many sellers have the Section 32 prepared as part of their overall sale conveyancing, rather than as a standalone document. We will give you a clear quote before we start. If you are a buyer, our fixed-fee contract review covers the contract and Section 32 before you sign.

What happens if a Section 32 is wrong or missing?

If the vendor does not provide a Section 32, or the statement is false, incomplete or misleading, the buyer may be able to rescind (cancel) the contract at any time before settlement under section 32K of the Sale of Land Act. The buyer may also have other claims, such as for compensation or misleading conduct.

A vendor may avoid rescission in limited cases, broadly where the vendor acted honestly and reasonably and the buyer is substantially in as good a position as if the statement had been correct. Relying on that exception is risky and often leads to a dispute, so it is far better to get the statement right from the start.

For buyers, a defect in the Section 32 is a reason to get advice quickly, as rights to rescind generally end at settlement.

How Shamac Lawyers can help

• Information gathering — we collect title documents, rates and property details.
• Thorough searches — title, planning, building, water and other certificates.
• Accurate drafting — every detail is checked and verified.
• Updates — we keep your statement current if your property stays on the market.
• Clear advice — we explain what is in your statement and why.

Frequently asked questions

Ready to sell? Get your Section 32 right

Shamac Lawyers brings years of experience to Melbourne conveyancing and Section 32 preparation. Contact us to get started and sell your property with confidence.