What is a Section 32 or Vendor’s Statement?
A Section 32 statement, or Vendor's Statement, is a legally required document that outlines crucial details about the land you're buying on.
Key takeaways
- A seller needs to provide potential buyers with a Vendor's Statement when selling a property. In Victoria this is called a Section 32 statement.
- A Section 32 or Vendor's Statement is a set of documents that discloses important information about the property for sale.
- This includes zoning information, easements or any existing mortgages on the property. You can get a conveyancer to prepare this statement.
Is it called a Vendor's Statement or Section 32?
In every state and territory in Australia, property sellers are required to disclose important information about the property, including the land itself and the property title.
In most jurisdictions this is called a Vendor's Statement. But in Victoria it's called a Section 32 statement because section 32 of the Sale of Land Act 1962 sets out what information sellers must disclose.
What details must be included in a Section 32 statement?
Vendor disclosure requirements may vary by jurisdiction. Here's what a Section 32 statement in Victoria must include:
- Zoning. A Section 32 must contain information about how the land is zoned and how the local council will allow it to be used.
- Outgoings. This provides information on the rates payable on the land.
- Title. A Section 32 must include a Certificate of Title, which will give a detailed description of the property being sold and verify that the vendor has the right to sell the land.
- Land use. The document must also disclose any easements, covenants or restrictions on land use. An easement is a right for the use of the land by a third party. For example, the council may have an easement for the use of a drainage or sewerage pipe. The Section 32 also must disclose if the land has road access.
- Bushfire danger. The Section 32 must disclose whether the land is in a bushfire-prone area.
- Building permits. The Section 32 must disclose the particulars of any building permits issued within the last seven years.
NSW requirements
In NSW the contract of sale must include:
- Title documents (this should include information about easements, covenants and mortgages)
- Drainage diagram
- Current Zoning Certificate
Who needs a Section 32?
The Section 32 is provided by the vendor (seller) to the purchaser in a property transaction. The vendor must provide a Section 32 in order for the transaction to reach settlement.
For sellers, it’s important to ensure that the Section 32 provided to the buyer is a full and accurate representation of everything affecting the land on which the property sits. Failure to disclose any of the information required in a Section 32 could see your property transaction fall apart. A buyer could take legal action against a vendor if the Section 32 is inaccurate or incomplete.
Must read: What's not in a Section 32?
A Section 32 does not have to disclose anything about the condition of the building or buildings on the land. While it does have to disclose any services that aren't connected, such as water, gas or electricity, it doesn't have to provide information about whether those services are available.
If you're a buyer, you'll want to do your own research into the areas not covered by a Section 32. It's a good idea to get a building and pest inspection. You may also want to consider getting title insurance to protect you from certain legal issues related to the property that a seller may not have disclosed.
How do I obtain a Vendor's Statement or Section 32?
A Section 32 is usually prepared by a conveyancer or solicitor. If you are a buyer, the completed Section 32 will be provided to you by the seller.
If you are the seller, a conveyancer or solicitor can complete the form for you. While there are DIY conveyancing kits available that include blank Section 32 documents, it’s often wise to have the document prepared by a professional.
Frequently asked questions about Section 32 Statements
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why can I not get a blank section 32 to complete myself?
Hi Ed,
A Section 32 (Vendor Statement) is not a standardised form you can fill in yourself. By law, it is a compilation of mandatory property data, including official land titles, local council planning certificates and service connection records that must be legally accurate. You must legally purchase and attach official, up-to-date certificates from various authorities (e.g., Local Council, State Revenue Office and Water Authorities) and you also have to identify and disclose hidden details like easements, covenants or zoning overlays that affect how the land can be used.
As the seller (vendor), you are legally responsible for the information provided and if you omit information or make an error, the buyer has the legal right to cancel the contract or sue you for damages. This creates heavy legal risks, so the Section 32 must be drafted by a qualified legal practitioner or a licensed conveyancer. Hope this helps!
Hi. Is it correct that in Victoria a sec 32 is only valid for 3months?
Hi Christine, thanks for your inquiry.
Can we ask where you heard this from? We couldn’t find anything about Section 32 only being valid for 3 months from our research.
Thanks,
Jonathan
Hey Adam!
How goes?
Can I get Section online? I could only find one place and they wanted $50 for a copy.
Cheers!
Mark
Hi Mark!
Thanks for the comment.
Obtaining Section 32 Statement thru a licensed conveyancer is possible. You may inquire with your local consumer services or affairs for the public register of conveyancers online, as they vary in each state.
Alternatively, you may also check our list of DIY conveyancing kits.
Hope this helps.
Cheers,
Jonathan