Contracts
Section 32 red flags: what to check in a Victorian vendor statement
By Precursor Property · 8 min read · Updated June 2026
In Victoria, the seller must give you a Section 32 — the vendor statement — before you sign. It's required under the Sale of Land Act 1962, and it's where the deal-breakers live. Most buyers skim it. Here are the red flags worth slowing down for.
What a Section 32 actually is
A Section 32 (or "vendor statement") is the disclosure document a Victorian seller must legally provide before a contract of sale is signed. Set out in sections 32A–32I of the Sale of Land Act 1962, it bundles the property's title, encumbrances, financial obligations, building permits, planning information and services into one document. It's not marketing — it's the legal record of what you're actually taking on. If something material is missing or misstated, it can give you rights; if it's disclosed and you miss it, that's on you.
The five red flags
1
Easements & restrictive covenants
An easement (e.g. for drainage or sewerage) or a covenant can dictate where — and whether — you can build. A single sewer easement down the middle of a block can quietly kill a subdivision or extension. Check the plan and the title for both.
2
Owners corporation debts & disputes
For apartments and units, the OC certificate reveals unpaid levies, looming special charges, insurance gaps and live legal disputes. These liabilities transfer to you at settlement — a pending special levy for re-cladding or repairs can run into tens of thousands.
3
Planning & zoning surprises
The statement discloses the planning scheme affecting the land — including whether it's in a bushfire-prone area or carries overlays. Don't assume "residential" means "anything goes": the zone and overlays decide what you can really do.
4
Building permits & illegal works
The Section 32 lists building permits from the last seven years. A renovation, deck or garage conversion with no matching permit may be unapproved — and as the new owner you can inherit the cost of rectifying or removing it. Owner-builder work carries extra disclosure (condition report and insurance) that's worth scrutinising.
5
Outstanding rates, land tax & charges
Council and water rates, land tax and other government charges attaching to the land are disclosed here. Unpaid amounts and charges can follow the property — check what's owing before it quietly becomes your bill at settlement.
2026 note: disclosure requirements have grown over time — especially around owner-builder work — and further Sale of Land Act changes (for example, around "stigma" disclosure) have been discussed. Always work from the current statement and have it reviewed by your conveyancer or solicitor.
How to read one without missing the traps
- Cross-check the title and plan for easements and covenants, not just the summary.
- For strata/OC properties, read the OC certificate in full — levies, fund balance, disputes.
- Match every visible structure to a building permit — gaps are a flag.
- Confirm zoning and overlays independently on VicPlan.
- Have a conveyancer or solicitor review it — and get independent due diligence on the things the document doesn't interpret for you.
Key takeaways
- The Section 32 is a legal disclosure required before you sign (Sale of Land Act 1962, ss 32A–32I).
- Watch for easements/covenants, owners corporation debts, planning/overlay issues, unpermitted works and outstanding charges.
- Liabilities like OC special levies and unpaid charges can transfer to you at settlement.
- Disclosure rules keep expanding (especially owner-builder) — always use the current statement.
- Have it reviewed by a conveyancer/solicitor, and verify zoning and overlays yourself.
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General information only, current as at June 2026, and not legal or financial advice. Always have contracts and title reviewed by a qualified conveyancer or solicitor for your specific purchase.