Section 32 Statement in Victoria: Complete Guide (2026 Edition)

Written by Lawrence Liang - 12 March 2026

Thinking about selling your home, investment property, or land in Victoria? Before your property hits the market — whether in Melbourne, Glen Waverley, Geelong, Ballarat, or anywhere across the state — there's one legal document you cannot afford to get wrong: the Section 32 Vendor Statement. This guide breaks down everything Victorian property sellers need to know.

What is a Section 32 Statement?

If you're selling property in Victoria, you've likely heard the term "Section 32" — but what does it actually mean, and why does it matter so much?

A Section 32 Vendor Statement is a legally required disclosure document that every property seller(vendor) in Victoria must provide to a prospective buyer before that buyer signs a Contract of Sale. Its name comes directly from Section 32 of the Sale of Land Act 1962, the legislation that governs property transactions across the state.

The Section 32 statement gives prospective purchasers the key information they need about a property — its legal title, financial matter, encumbrances, planning restrictions, building permits, and more — so they can complete their due diligence and make an informed decision before committing to one of the biggest financial transactions of their lives.

For sellers, understanding your obligations under Section 32 isn't just good practice — it's the law. Failing to comply can have serious financial and legal consequences.

Section 32 vs Contract of Sale — What's the Difference?

Many first-time sellers in Victoria confuse the Section 32 Statement with the Contract of Sale. While both documents are essential to any Victorian property transaction, they serve very different purposes.

  • Section 32: Discloses information about the land and the property - i.e. outgoings, zoning, easements, Owners Corporation (if applicable), and so forth.

  • Contract of Sale: Sets out the terms and conditions of the sale - i.e. sale price, settlement date, finance clause, and so forth.

Pro Tip: Both documents are typically prepared together by your conveyancer or solicitor, and buyers will have both reviewed by their conveyancer or solicitor before proceeding.

When Does a Section 32 Statement Need to Be Provided?

According to the Sale of Land Act 1962, the Section 32 Vendor Statement must be handed to a prospective buyer before they sign the Contract of Sale — no exceptions.

In practice, here's how the timing usually works:

During the campaign:

When buyers attend open for inspections — whether your property is listed for private sale or auction — they will typically ask the selling agent for a copy of both the Contract of Sale and the Section 32 Statement.

This allows their conveyancer or solicitor to review the documents before they make an offer or attend auction.

As soon as you've appointed a sales agent and signed the agency authority, engage your conveyancer or solicitor to begin preparing the Section 32 straight away. Don't wait until you have an interested buyer.

Here's why timing matters:

Preparing a legally compliant Section 32 Statement isn't a quick process. Your conveyancer needs to order and receive a range of property certificates from councils, Land Titles Office, water authorities, and other bodies. They must then carefully review each certificate, identify any issues, and follow up with you for further instructions where needed. This process normally takes one to two weeks — and that's before any complications arise. Starting early means your property can go to market without delay and without cutting corners on compliance.

What Information Must Be Included in a Section 32 Statement?

The Sale of Land Act 1962 sets out, in Sections 32A through to 32I, exactly what must be disclosed in a Section 32 Vendor Statement. Here is a practical breakdown of the key requirements that apply to most Victorian property sales:

Financial Matters - Section 32A Sale of Land Act 1962

Your Section 32 must disclose any outgoings that the buyer will be responsible for, including:

  • Council rates (e.g., City of Melbourne, Yarra City Council, Knox City Council)

  • Water and sewerage charges (e.g., Melbourne Water, Yarra Valley Water, South East Water)

  • Owners Corporate Fees (where applicable)

  • Any other regular or special levies

This gives buyers a realistic picture of the ongoing costs of owning the property.

Easements, Covenants, and Restrictions - Section 32C Sale of Land Act 1962

If the land is subject to any easement (such as a drainage or sewerage easement running through the backyard), restrictive covenant (for example, a covenant limiting subdivision or the type of dwellings that can be built), or any similar interest registered on the title, it must be clearly described and the relevant instruments attached. Many properties throughout Victoria — particularly older subdivisions in established Melbourne suburbs — carry covenants on their titles that significantly affect what buyers can do with the land. Failing to disclose these can be grounds for rescission.

Building Permits in the Last 7 Years - Section 32E Sale of Land Act 1962

If any building works have been carried out on the property and a building permit has been issued under the Building Act 1993 within the preceding seven years, those permits must be listed in the Section 32. This requirement commonly applies to:

  • Newly built homes and townhouses (particularly prevalent in Melbourne's growth corridors and inner-city apartment developments)

  • Recent renovations that require a building permit, such as extensions, new decks, or second storeys

  • Structural alterations that require a building permit

The reason for this requirement is straightforward: buyers deserve to know whether the construction meets building regulations.

If the building works were completed by an owner-builder, additional disclosure requirements and supporting documents will be required.

Owners Corporation (Body Corporate) Information - Section 32F Sale of Land Act 1962

If the property is part of an Owners Corporation (previously known as a Body Corporate) — which is standard for apartments, units, and many townhouse developments across metropolitan Melbourne and regional Victorian cities — the Section 32 must include information prescribed for the purposes of Section 151(4)(a) of the Owners Corporations Act 2006 relating to the owners corporation.

This information includes, but is not limited to, the following:

  • Owners Corporation fees payable in respect of the property/lot

  • Fees and charges that are imposed or proposed to be imposed on the property/lot

  • Any fees, levies, or other money currently owing in respect of the property/lot

  • Insurance held by the Owners Corporation

  • Funds held in the maintenance fund and the administrative fund by the Owners Corporation

In practice, this requirement is typically satisfied by attaching a current Owners Corporation Certificate issued under Section 151 of the Owners Corporations Act 2006.

Register Search Statement (Title Search) - Section 32I Sale of Land Act 1962

A current copy of the Register Search Statement (commonly called a Title Search) from the Land Titles Office must be attached. This is the official record of ownership and any registered interests— mortgages, caveats, easements, covenants — affecting the land. Your conveyancer will obtain this on your behalf as part of preparing the Section 32.

Why a Compliant Section 32 is Critical for Property Sales in Victoria?

It may be tempting to view the Section 32 as a box-ticking exercise — another piece of paperwork to get through before selling your property. But sellers in Victoria who take that approach are exposing themselves to serious legal and financial risks.

If you fail to provide a purchaser with a Section 32 before they sign the Contract of Sale, the consequences can be severe. The purchaser may be entitled to rescind or terminate the contract at any time and seek compensation from you. This means a deal you thought was done and dusted could unravel at any stage, potentially at enormous cost to you as the vendor.

Even where you do provide a Section 32, its contents must be accurate, complete, and not misleading. If a buyer later discovers that the Section 32 contained misleading or deceptive information — whether through an error, an omission, or a misrepresentation — they may be entitled to rescind or terminate the contract and claim compensation for any loss or damage they have suffered as a result.

In short: getting your Section 32 right the first time is not just about legal compliance under the Sale of Land Act 1962 — it's about protecting yourself as a vendor and ensuring the sale proceeds smoothly through to settlement, particularly in a softer or uncertain property market.

Common Section 32 Defects

Understanding what can go wrong is the best way to ensure it doesn't. Here are some of the most common real-world examples of defective Section 32 Statements in Victoria:

Failure to Disclose an Owners Corporation

This is one of the most common Section 32 issues in Victorian property transactions. In Nicolacopoulos v Khoury [2010] VCC 1576, the vendor failed to provide the purchaser with information and documents revealing that the land was affected by an Owners Corporation. The County Court upheld the validity of the buyer's rescission of the contract.

For sellers of apartments, units, or townhouses in strata developments across Melbourne and regional Victoria — where an Owners Corporation is involved, it is important not to assume that an owners corporation does not exist or is inactive. Always consult your conveyancer and, where necessary, order the owners corporation certificate early, as it can take up to three weeks to obtain.

For high-rise apartments in the Melbourne CBD and surrounding areas, it is common for multiple Owners Corporations to affect the same property. In these cases, make sure all relevant owners corporations are included when ordering the certificates, as your obligation to disclose them in the Section 32 is strict.

Undisclosed Building Orders and Illegal Structures

Unpermitted structures are more common than many sellers realise. A typical scenario is when an owner builds a pergola, carport, or alfresco extension without obtaining the required building permit from their local council. Before selling, the council discovers the structure and issues a Building Order requiring its removal or rectification. The owner then fails to disclose that Building Order in the Section 32 — either hoping the buyer will not notice, or not realising the obligation to disclose it.

This can create serious issues. The buyer may rescind the contract upon discovering the order, or proceed and then hold the seller responsible for the cost of compliance. Either way, the financial and legal fallout can be significant.

Swimming Pool and Spa Safety Barriers

Another increasingly common issue involves properties with a swimming pool or spa. Since 1 December 2019, new safety standards have been introduced by the Victorian Government to improve pool and spa safety. The new Building Regulations 2018 requirements are to ensure that all swimming pools and spas have a compliant barrier/fence. Once the barrier/fence has been inspected by an approved building inspector, a certificate of barrier compliance is issued to the owner, and must be disclosed in the Section 32.

Your Questions, Answered

  • At AY Conveyancing, we aim to make the selling process as stress-free as possible. The cost of preparing your Section 32 Statement is included as part of our fixed fee.

    In some more complex situations, additional professional fees may apply. If that is the case, we will always discuss and confirm the costs with you before you proceed.

    The only costs not included in our fixed fee are the search fees for certificates that must be obtained from various authorities. These are government or third-party charges and vary depending on the property. For example, properties with an Owners Corporation, recent building works, or more complex title arrangements often require additional certificates, which can increase the total search cost.

  • A Section 32 Statement does not have a fixed expiry date. However, the information contained in it must be current and accurate at the time it is provided to a prospective purchaser.

    As a general rule, the Section 32 should be updated whenever there is a material change relating to the property. For example, a new Owners Corporation annual meeting has been held and new fees or levies are introduced.

    In addition, if a property has been on the market for an extended period (as a general guide, around 90 days), it is sensible to review the Section 32 with your conveyancer to ensure all certificates and information remain current before a contract is signed.

  • Yes, your sales agent can start the marketing campaign and conduct open for inspections while your Section 32 is still being prepared. However, the Contract of Sale cannot be signed until the Section 32 Statement has been provided to the purchaser.

    For this reason, it is always a good idea to engage your conveyancer early so the Section 32 can be prepared as soon as possible. This helps avoid unnecessary delays when a motivated buyer is ready to make an offer.

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