How to Read a Section 32 Before Buying Property in Victoria
- Jun 10
- 4 min read
A Complete 2026 Guide for Home Buyers and Investors
What Is a Section 32?
If you're buying property in Victoria, one of the most important documents you'll receive before signing a Contract of Sale is the
Section 32 Vendor Statement.
Often referred to simply as a "Section 32" or "Vendor Statement," this legal document provides key information about the property and helps buyers make informed decisions before committing to a purchase.
Unfortunately, many buyers receive the document and either:
Never read it
Only skim through it
Assume their conveyancer will handle everything
This can be an expensive mistake.
A Section 32 can reveal hidden issues such as:
Special levies
Easements
Building defects
Owners Corporation disputes
Unapproved building works
Planning restrictions
Understanding what you're looking at could save you thousands of dollars after settlement.
Why Is It Called a Section 32?
The name comes from Section 32 of the Sale of Land Act 1962 (Victoria).
Under Victorian law, vendors must provide certain information about the property before a purchaser signs a contract.
The purpose is to ensure buyers are fully informed before making a legally binding commitment.
What Is Included in a Section 32?
A typical Section 32 may contain:
✔ Title Search
✔ Plan of Subdivision
✔ Council Information
✔ Water Information
✔ Owners Corporation Information
✔ Planning Details
✔ Building Permits
✔ Services Information
✔ Notices and Orders
✔ Outgoings
✔ Other Relevant Disclosures
Let's examine the most important sections.
1. Title Search
This confirms the legal ownership of the property.
Review:
Registered Owner
Confirm the seller is the legal owner.
Volume and Folio
Identifies the title record.
Encumbrances
Look for:
Covenants
Easements
Restrictions
Red Flag
If there are restrictions affecting how the property can be used or developed, seek legal advice before proceeding.
2. Easements
An easement gives another party rights over part of the property.
Common examples include:
Drainage easements
Sewer easements
Access easements
Utility easements
For houses, easements can affect future extensions or redevelopment plans.
For apartments, easements are generally less significant but should still be reviewed.
3. Plan of Subdivision
This document shows:
Lot boundaries
Car spaces
Storage cages
Common property areas
For apartment purchases, always confirm:
✔ Car space is on title
✔ Storage cage is on title
✔ Exclusive-use areas are correctly identified
Never rely solely on marketing brochures.
4. Owners Corporation Information
For apartment buyers, this is one of the most important sections.
The Section 32 should include:
Owners Corporation Certificate
Containing:
Annual fees
Insurance details
Financial information
Current Levies
OC Rules
Insurance Policies
Red Flags
Look for:
🚩 Large increases in OC fees
🚩 Low maintenance fund balances
🚩 Ongoing legal disputes
🚩 Building defect discussions
🚩 Planned major works
5. Special Levies
A special levy is an additional contribution required from lot owners.
This often occurs when:
Building repairs are needed
Defects are discovered
Reserve funds are insufficient
Ask:
Has a Special Levy Been Issued?
Is a Levy Being Discussed?
Are Capital Works Planned?
Many buyers discover these costs only after settlement.
6. Council Rates and Other Outgoings
The Section 32 will usually disclose:
Council Rates
Water Rates
Owners Corporation Fees
These costs help buyers understand the property's ongoing holding expenses.
7. Planning and Zoning Information
This section identifies:
Zoning
For example:
Residential Zone
Commercial Zone
Mixed Use Zone
Overlays
Examples include:
Heritage Overlay
Flood Overlay
Bushfire Overlay
Why This Matters
Planning controls may affect:
Renovations
Extensions
Redevelopment potential
Future property value
8. Building Permits
If renovations or extensions have been completed, the Section 32 may disclose:
Building permits
Occupancy permits
Relevant approvals
Red Flag
If major works have been completed without permits, this may create future legal or insurance issues.
9. Notices and Orders
The vendor must disclose certain notices affecting the property.
Examples include:
Council notices
Building notices
Compliance orders
Repair notices
Any active notice should be investigated carefully before proceeding.
10. Services Connected to the Property
The Section 32 confirms whether the property is connected to:
Electricity
Water
Sewerage
Gas
Telecommunications
This is generally straightforward but should still be checked.
What the Section 32 Doesn't Tell You
A common misconception is that the Section 32 contains everything a buyer needs to know.
It doesn't.
A Section 32 may not reveal:
❌ Hidden water leaks
❌ Poor tenant quality
❌ Future market conditions
❌ Neighbour disputes
❌ Building quality concerns
❌ Future developments nearby
That's why proper due diligence extends beyond the Section 32 itself.
Questions Every Buyer Should Ask
Before signing a contract, consider:
✔ Are there any special levies?
✔ Is the Owners Corporation financially healthy?
✔ Are there any legal disputes?
✔ Are there building defects?
✔ Are there planning restrictions?
✔ Is the car space actually on title?
✔ Are there any active notices or orders?
Should You Read It Yourself or Hire a Professional?
The answer is both.
Buyers should:
Read the Section 32 themselves.
Have a solicitor or conveyancer review it.
Ask questions about anything they don't understand.
Professional advice often costs a few hundred dollars but can prevent costly mistakes worth thousands—or even tens of thousands—of dollars.
A Section 32 is much more than a legal formality.
It is one of the most powerful due diligence tools available to Victorian property buyers.
Understanding how to read it can help you identify:
✔ Hidden costs
✔ Owners Corporation risks
✔ Planning restrictions
✔ Title issues
✔ Building concerns
Before making an offer or signing a contract, always take the time to review the Section 32 carefully and obtain professional advice where necessary.
A few hours of due diligence today can save years of regret tomorrow.
Disclaimer
This article is intended for general information purposes only and does not constitute legal, financial, taxation, or property advice. Buyers should seek independent advice from a qualified solicitor, conveyancer, accountant, or property professional before making any property-related decisions.
