What is a Section 32 Statement?

The Section 32 Statement is a mandatory document provided to the prospective purchaser of real estate by the vendor (seller). The purpose of the Section 32 Statement is to disclose information which may affect the value and the use of the land being sold in a property transaction. Also known as a Vendor’s Statement, the term ‘Section 32’ is derived from the correlating section in the Sale of Land Act 1962 (Vic) (the Act).

Essentially, section 32(1) of the Act requires a vendor to provide a purchaser with a signed statement containing the matters and documents specified in sections 32A-32I of the Act, before the purchaser signs the contract. The Section 32 Statement is typically provided to prospective purchasers whilst the property is on the market. This allows the prospective purchaser to complete their due diligence and make an informed decision regarding their potential purchase.

What should be included in the Section 32?

In accordance with sections 32A-32I of the Act, the information which is required to be disclosed to prospective purchasers in a Section 32 Statement includes, but is not limited to, the following:

Information required to be disclosed	Purpose of disclosure
Copy of the Registered Search Statement (Certificate of Title)	This confirms the title details, the registered proprietor(s), any encumbrances, caveats, notices and the street address of the land being sold.
Copy of the Plan of Subdivision	This details the boundaries of the lot and provides a description of any easements covenants, or restrictions affecting the land.
Planning Statement	This specifies the name of the responsible government authority, the planning zone and any overlays affecting the land, and the name of the planning scheme.
Certificates from the relevant authorities	These include, but are not limited to, the local Council, the local Water Authority, VicRoads, the State Revenue Office and the Owners Corporation (if applicable). These certificates serve to outline any levies, notices, permits, insurance or proposed plans that may affect the land.
Building permits	A vendor must disclose, in the Section 32 Statement, any building permits issued under the Building Act 1993 (Vic) in the preceding 7 years. They may also be required to provide any occupancy permit, final inspection, defects report or insurance.
Due Diligence checklist	This is a standardised checklist which has been created by Consumer Affairs Victoria. It serves to advise prospective purchases of a range of issues that may affect the property and impose restrictions or obligations on them.

Who prepares the Section 32?

A vendor will engage a legal representative, being a conveyancer or solicitor, to prepare the Section 32 Statement. The vendor’s legal representative will prepare the Section 32 Statement by obtaining instructions from the vendor and collecting the appropriate certificates from the relevant authorities.

What are the ramifications of either failing to provide, or providing a non-compliant Section 32?

If the vendor fails to provide the purchaser with the Section 32 Statement prior to the purchaser signing the contract of sale, the purchaser may be entitled to either rescind or terminate the contract at any time and seek compensatory relief from the vendor.

Should the vendor or the vendor’s legal presentative fail to disclose any information that ought to have been included in the Section 32 Statement under the Act, the Section 32 Statement may be deemed ‘defective’. This can have serious ramifications for the vendor. Section 30 of the Australian Consumer Law (ACL) prohibits the making of any misleading or deceptive representations about the sale of land in trade or commerce, which includes the sale of land in the course of one’s business.

Possible consequences for the vendor preparing a defective Section 32 Statement may include the purchase price of the property being reduced, the loss of sale of the property entirely, financial penalties and/or further legal action depending on the severity of the non-disclosure. Significantly, a breach of section 30 of the ACL can attract a maximum pecuniary penalty of $500,000.

Furthermore, a purchaser may also be entitled to rescind or terminate a contract on the basis of a defective Section 32 Statement, even where they were provided with the Section 32 Statement prior to signing the contract. The purchaser may also be entitled to further compensatory relief from the vendor for any loss or damage they might have suffered.

At Merton Lawyers, we undertake a strict process when preparing the Section 32 Statement to ensure that all the essential information and documentation that is required to be disclosed by the vendor is captured in the Statement. Our thoroughness and attention to detail mitigates the risk to vendors and ensures that prospective purchasers are provided with a legally compliant Section 32 as part of the contract of sale for the land being sold.

As a prospective purchaser, what should I look for in the Section 32?

Upon examining the Section 32 Statement, your conveyancer or solicitor will offer legal advice concerning the matters that may affect the value of the property or require further investigation. Our examples of matters listed under “What should be included in the Section 32?” are by no means exhaustive.

As part of your due diligence prior to purchasing a property, it is essential that you engage an experienced professional to review the Section 32 Statement prior to the signing of a contract. This allows you to identify and conduct further enquiries into any hidden issues that may adversely affect the value of the property.

It is also recommended that you inspect the land being sold prior to review of the Section 32 Statement to assist your conveyancer or solicitor with any queries they may have in respect of the layout or condition of the land and whether this accords with information provided in the Section 32 (including the certificate of title).

If you have any queries about Section 32 Statements, contract reviews or any other related matters, please contact our conveyancing team on 03 9645 9500 or via email

Conveyancing key contacts