In Australia, the vendor statement section 32 Australia is a crucial document in any property transaction. If you’re buying or selling real estate—especially in Victoria—you’ll need to understand what this document covers, how it affects your legal obligations, and why it matters. In this guide, Legal Finda breaks down everything you need to know about Section 32 in simple, practical terms.
Why the Vendor Statement (Section 32) Is Crucial in Property Deals
When it comes to property transactions in Australia—especially in Victoria—the legal side can seem overwhelming. Between contracts, inspections, title checks, and financial approvals, one legal document stands out: the vendor statement, also known as the Section 32 statement.
Named after Section 32 of the Sale of Land Act 1962 (VIC), this document plays a key role in ensuring transparency between a property seller and buyer. Without it, a property sale may not proceed legally. In fact, failing to provide a valid Section 32 could give the buyer grounds to walk away from the deal—even at the last minute.
Whether you’re a first-time seller or an experienced investor, understanding the vendor statement section 32 Australia can help you avoid legal pitfalls, delays, and disputes.
What Is a Vendor Statement (Section 32) in Australia?
The vendor statement, also called the Section 32 statement, is a legal disclosure document that sellers must provide to prospective buyers before a contract is signed. It outlines specific information about the property that may influence a buyer’s decision.
The statement gets its name from Section 32 of the Sale of Land Act, which requires the vendor to disclose certain details, ensuring the buyer can make an informed decision before signing a binding contract.
The document is primarily used in Victoria, but similar disclosure obligations exist in other states and territories under different names or laws.
What Information Must Be Included in a Section 32 Statement?
Here’s what is typically included in a valid vendor statement section 32 Australia:
1. Property Title Details
- Whether the seller owns the property outright or has a mortgage
- Any covenants, easements, or restrictions on the land
2. Zoning Information
- The local zoning classification
- Any overlays or proposed planning schemes that affect the property
3. Outgoings
Rates, land tax, body corporate fees (if applicable)
4. Services Connected
Details of utilities such as electricity, water, sewerage, gas, and NBN
5. Building Permits
Records of any building permits issued in the last seven years
6. Notices or Orders
Any notices or orders issued by authorities (e.g., demolition, repairs)
Why Is the Vendor Statement So Important?
For buyers, a Section 32 statement serves as a window into the true condition and legal standing of the property. For sellers, it’s a legal requirement.
For Buyers:
- Helps identify risks before purchase
- May impact financing approval
- Offers grounds to withdraw if misleading or incomplete
For Sellers:
- Failure to disclose may result in legal consequences
- The sale could be voided if the document is found invalid
In short, both parties benefit from a correctly prepared and honest Section 32.
Who Prepares the Vendor Statement?
The vendor's conveyancer or solicitor is typically responsible for preparing the Section 32 statement. Because it's a legally binding document, it must be accurate and thorough.
Mistakes in the vendor statement—such as failing to disclose an easement or rates payable—can result in serious legal consequences, including:
- The buyer pulling out of the sale
- The seller being sued for damages
That’s why it’s critical to engage a legal professional experienced in vendor disclosure obligations Victoria.
Key Legal Requirements for a Valid Vendor Statement
To ensure your vendor statement section 32 Australia is legally compliant, it must:
- Be in writing and signed by the seller or their legal representative
- Be provided to the buyer before the contract is signed
- Contain all disclosures required under Section 32
- Be accurate and up to date at the time of signing
Any omission, even if accidental, can be considered misleading or deceptive under Australian Consumer Law.
What Documents Are Included in a Vendor Statement?
Depending on the property, a complete Section 32 statement may include copies of:
- Certificate of title
- Copy of plan of subdivision
- Rates notice
- Land tax certificate
- Zoning certificate
- Building permits (if applicable)
- Owner’s corporation certificate (for units/apartments)
These documents back up the statements made in the Section 32 and give buyers an official record to verify the property’s legal status.
Common Mistakes Sellers Make with Section 32 Statements
Even experienced sellers can make costly mistakes when preparing a Section 32:
- Providing an outdated title certificate
- Failing to disclose encumbrances like easements or covenants
- Omitting building permits or notices
- Not updating the document before contract signing
Avoid these pitfalls by working with a qualified conveyancer or solicitor who understands the intricacies of section 32 property sale VIC regulations.
Can a Buyer Cancel a Contract Because of Section 32 Issues?
Yes. If a buyer finds that the vendor statement is:
- Incomplete
- Incorrect
- Misleading
...they may have the right to rescind the contract—sometimes even after signing.
For example, if a buyer discovers post-signing that the property is affected by a planning overlay that was not disclosed in the Section 32, they may choose to terminate the contract within a certain timeframe.
This is why both buyers and sellers must treat the vendor statement section 32 Australia with the same level of care as the actual sale contract.
What’s the Difference Between the Vendor Statement and the Contract of Sale?
The vendor statement is not the same as the contract of sale.
- Section 32 provides background information on the property (title, zoning, rates, etc.)
- The contract of sale is the agreement outlining the price, deposit, settlement date, and conditions of the sale
Think of the vendor statement as the full "disclosure report" and the contract as the "deal" between the two parties.
How Legal Finda Can Help You with Section 32
At Legal Finda, we understand that navigating the legal side of selling a property can be complex. That’s why we connect property sellers with experienced, local conveyancing lawyers who can prepare a valid, watertight vendor statement section 32 Australia—and ensure the process goes smoothly.
With our nationwide network of trusted professionals, you can:
- Compare conveyancing quotes online
- Connect with lawyers who specialise in vendor disclosure
- Save time, reduce risk, and gain peace of mind
Conclusion
The vendor statement section 32 Australia is a powerful legal tool. When prepared correctly, it protects both buyer and seller and supports a transparent, stress-free property transaction.
But if done poorly, it can delay settlement—or derail the sale entirely.
Whether you're a buyer reviewing a statement or a seller preparing one, working with a conveyancing professional is the best way to protect your interests. And that’s exactly where Legal Finda can help.
Get started today—because every smooth sale starts with smart legal support.
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