Selling Property
Selling property in Victoria involves more than finding a buyer and signing a contract. One of the most important legal obligations for sellers is preparing a Section 32 Vendor Statement before a purchaser signs the Contract of Sale.
What Is a Section 32 Vendor Statement?
A Section 32 Vendor Statement is a mandatory legal disclosure document provided by the seller to prospective purchasers before they sign a Contract of Sale in Victoria.
According to Consumer Affairs Victoria, the Section 32 Statement contains information about the property’s title, including mortgages, covenants, easements, zoning, outgoings and whether the property is located in a bushfire-prone area. Its purpose is to help buyers make an informed decision before committing to the purchase. While a physical inspection may show the condition of the property, a Section 32 reveals important legal and administrative information that may not be visible during an inspection.Is a Section 32 Mandatory in Victoria?
Yes. In most Victorian property transactions, the seller must provide a Section 32 Vendor Statement before the purchaser signs the Contract of Sale. If a Section 32 is not provided, or if it contains incorrect, incomplete or misleading information, the buyer may have the right to withdraw from the contract.Section 32 vs Contract of Sale
The Section 32 Vendor Statement and the Contract of Sale work together, but they are not the same document.- Section 32: Discloses important information about the property.
- Contract of Sale: Sets out the legal terms of the sale, including price, deposit, settlement date and special conditions.
What Must Be Included in a Section 32 Vendor Statement?
The required disclosures can vary depending on the property, but a Section 32 Vendor Statement commonly includes:- Title information
- Mortgages, caveats, covenants and easements
- Planning and zoning details
- Council rates, water rates and other outgoings
- Owners Corporation information, if applicable
- Building permits and owner-builder information
- Services connected to the property
- Bushfire-prone area declarations
- Government notices, orders or proposals affecting the land
Why Accurate Disclosure Matters
A defective Section 32 Vendor Statement can create serious problems for sellers. The Legal Practitioners’ Liability Committee explains that errors in a Section 32 can lead to rescission of the contract, delays, costly disputes and professional risk for those preparing the document. For sellers, inaccurate disclosure may result in settlement delays, renegotiation or legal disputes. For buyers, the Section 32 is an important due diligence tool that helps them understand what they are purchasing before signing.The Section 32 Process for Sellers
Preparing the Section 32 early can help prevent delays and support a smoother sale.01
Before Marketing Begins
The best time to prepare a Section 32 is before the property is listed for sale. This allows your agent to provide the document to interested buyers promptly.- Start before listing the property
- Allow time to order certificates
- Identify potential issues early
02
Conveyancer or Solicitor Prepares the Statement
A licensed conveyancer or solicitor typically prepares the Section 32, conducts required searches and ensures the document complies with Victorian legislation.- Order property certificates
- Review title and planning information
- Check disclosure requirements
03
Seller Reviews the Document
Sellers should carefully review the Section 32 before it is signed and issued, as it is ultimately a declaration about the property being sold.- Confirm property details are accurate
- Check renovations or building works
- Confirm services and outgoings
04
Provide It Before the Contract Is Signed
The Section 32 must be given to prospective purchasers before they sign the Contract of Sale, including before an auction.- Provide to interested buyers
- Use current certificates where needed
- Update documents if the sale process takes longer
Common Section 32 Mistakes
According to the LPLC Section 32 risk guide, errors and omissions in Vendor Statements are a common source of disputes, contract rescissions and professional negligence claims.- Waiting until a buyer is found
- Assuming the agent prepares the document
- Using outdated certificates
- Failing to disclose renovations or building works
- Omitting easements, covenants or restrictions
- Not reviewing the final document before signing
How Long Is a Section 32 Valid?
There is no single expiry date for every Section 32 Vendor Statement. However, some certificates and searches can become outdated. For example, some searches may only be current for a limited period, such as land information certificates, water information statements and property clearance certificates. If the property remains on the market for an extended time, your conveyancer may recommend updating the documents.Why Professional Conveyancing Matters
Professional conveyancing helps sellers meet their legal disclosure obligations and reduce the risk of issues during the sale process. An experienced conveyancer can identify what needs to be disclosed, obtain the required certificates, prepare the Section 32 and help manage the transaction from listing through to settlement. To understand how conveyancing support fits into the wider property journey, read our guide: What Is Conveyancing and What Does a Conveyancer Do?Frequently Asked Questions
How much does a Section 32 cost in Victoria?
Costs vary depending on the property, the required searches and the complexity of the transaction.Can I prepare my own Section 32?
It is technically possible, but professional preparation is strongly recommended because mistakes or omissions can have serious legal consequences.How long does it take to prepare a Section 32?
Timeframes vary depending on the property and how quickly certificates are returned. It is best to start before the property is listed for sale.What happens if a Section 32 is wrong?
If the Section 32 contains incorrect, incomplete or misleading information, the buyer may have rights to withdraw from the contract or take further action, depending on the circumstances. The Legal Practitioners’ Liability Committee notes that inaccurate disclosures may expose parties to contractual disputes, settlement delays and potential legal claims.Should buyers review the Section 32?
Yes. Buyers should have the Section 32 reviewed by a licensed conveyancer or solicitor before signing the Contract of Sale, especially before bidding at auction.Need Help Preparing a Section 32?
Contact All Hours Conveyancing for professional Section 32 Vendor Statement preparation and conveyancing services across Melbourne and Victoria. Request a Conveyancing Quote📞 (03) 9649 7832
📧 info@allhoursproperty.com.au
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📍 Level 1, 530 Little Collins Street, Melbourne VIC 3000
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