What Is a Section 32 and Why Does It Matter?

If you’ve ever bought or sold property in Victoria, you’ve probably heard someone ask, "Have you got the Section 32?" Maybe it was at an open house or from a real estate agent handing you a stack of papers.

So what is a Section 32, and why is it important? Whether you’re buying your first home in Swan Hill, selling a family property in Echuca, or transferring a farm near Cohuna or Kerang, knowing about the Section 32 is one of the most important things to do before signing any paperwork.

Key takeaways

• A Section 32 is a legal document that the seller must give you before you sign a contract to buy property in Victoria.
• It contains critical information about the property that may affect your decision to buy.
• If a Section 32 is missing, incomplete, or misleading, you may have the right to walk away from the contract entirely.
• Always have a lawyer or conveyancer review a Section 32 before you sign anything.

What is a Section 32?

A Section 32, also called a Vendor's Statement, is a legal disclosure document that a seller must provide to any prospective buyer before the contract of sale is signed. It gets its name from Section 32 of the Sale of Land Act 1962 (Vic), which sets out exactly what sellers are required to disclose.

Simply put, it contains all the key facts about the property so you can make an informed decision before making an offer to buy.

It is a legal requirement. If a seller fails to provide one or provides one that is misleading or incomplete, the consequences can be serious for both parties.

What does it include?

A Section 32 includes several documents and certificates, and what’s inside can change depending on the property. Usually, it must have:

• Title details: who legally owns the property and whether there are any mortgages, caveats, or restrictions on the title.
• Zoning and planning information: what the land is zoned for and any overlays that might affect what you can do with it. For rural properties around Swan Hill and Kerang, this is especially important. Agricultural zoning can limit subdivision or changes of use.
• Easements and covenants: any rights others may have over the land, like shared driveways or drainage rights.
• Outgoings: council rates, water rates, and owners' corporation fees (if these apply).
• Building permits: details of any work done on the property in the last seven years and whether the right permits were obtained.
• Services: whether the property is connected to gas, water, electricity, and sewerage.

For properties in regional areas, Section 32s can be more detailed. Rural land sales might also contain water rights and irrigation entitlements. Joliman Lawyers has extensive experience with these issues.

What happens if something is wrong?

This is where things get serious. If a seller doesn’t give you a Section 32 before you sign the contract, you might be able to walk away from the sale at any time before settlement, even after contracts are exchanged, and get your deposit back.

If Section 32 has misleading or wrong information, you could also have a reason to cancel the contract or take legal action, depending on how serious the problem is.

For sellers, making a mistake under Section 32, even by accident, can mean losing the sale, paying financial penalties, or facing legal disputes long after settlement.

Don't just skim it, have it reviewed

A Section 32 isn’t easy to read. It’s a legal document, and it shows details hidden in the fine print, like covenants, unpaid rates etc. Skimming over a Section 32 can cost you down the track by exposing you to restrictions, liabilities, and unexpected expenses that may affect the property’s value or your intended use of it.

Whether you’re buying or selling in regional Victoria, having a local lawyer or conveyancer check your Section 32 is one of the best things you can do. They know what to look for, what might be missing, and what questions to ask before you sign anything.