What Is a Section 32 and Why Does It Matter When Buying a Home?
If you're buying property in Victoria, you'll come across a document called a Section 32 - also known as a vendor's statement. It's one of the first things you should review, and one of the most overlooked.
Understanding what's in it could save you from a costly mistake.
What Is a Section 32?
A Section 32 is a legal document that the seller (vendor) must provide to the buyer before a contract of sale is signed. It's required under Section 32 of the Sale of Land Act 1962 (Vic).
In simple terms, it's the seller's disclosure document. It tells you what you're actually buying - and flags anything that might affect the property's value or your use of it.
What Does It Include?
A Section 32 typically covers:
Title details
This confirms who owns the property and how it's held. It also reveals any encumbrances - things like mortgages, caveats, or charges registered against the title.
Easements and covenants
Easements give someone else the right to use part of your land (for example, a shared driveway or drainage pipe). Covenants are restrictions on what you can do with the property, such as building height limits or requirements to maintain a certain style of fencing.
Planning information
This includes the property's zoning, any planning overlays (like bushfire or heritage overlays), and details of any planning permits that have been issued or applied for.
Building permits
Information about building permits issued in the last seven years. If renovations or additions have been done, this section tells you whether they were properly approved.
Owner-builder disclosure
If the seller did building work as an owner-builder in the past six and a half years, they must disclose this. Owner-builder work can carry warranty and insurance implications.
Services
Details about which services are connected to the property - water, sewerage, electricity, gas, and drainage.
Outgoings
Any ongoing costs attached to the property, such as council rates, water rates, and owners corporation (body corporate) fees.
Why Should You Have It Reviewed?
A Section 32 can be dense and full of legal terminology. But buried in those pages might be details that significantly affect your decision to buy.
For example:
- An easement running through the middle of the backyard could prevent you from building that extension you had in mind
- A heritage overlay might restrict what changes you can make to the property
- Outstanding building permits could mean unapproved work that you'd inherit responsibility for
- A bushfire overlay may affect your insurance premiums and any future building plans
These aren't things you want to discover after you've signed the contract.
Can You Pull Out if Something Is Wrong?
If the Section 32 is defective - meaning it's incomplete, inaccurate, or wasn't provided at all - the buyer may have the right to end the contract. However, this right has limits and timeframes, so it's important to act quickly if you spot an issue.
This is another reason to have your solicitor or conveyancer review the document before you sign, not after.
When Should You Get It Reviewed?
Ideally, before you sign the contract of sale - especially at auction, where contracts are typically signed on the day.
If you're serious about a property, get the Section 32 and contract to your solicitor as early as possible. This gives them time to review it properly and flag any concerns before you're legally committed.
Don't Sign Without Understanding What You're Buying
A Section 32 might not be the most exciting part of buying a home, but it's one of the most important. It protects you by ensuring you know exactly what you're purchasing - the good, the bad, and everything in between.
Got a Section 32 you'd like reviewed?
Our conveyancing team reviews these documents every day and can help you understand what you're looking at. Call us on (03) 9787 4511 or
book a consultation.
