Section 32 vendor statement: what Geelong sellers need to know

If you are selling in Victoria, you will hear a lot about the Section 32. It is one of the most important documents in your sale. Getting it organised early helps buyers review the property properly and keeps the campaign on track.

This article explains what a Section 32 is, what it usually covers, who prepares it and why accuracy matters. It is part of our wider guide, How to sell your house in Geelong.

This is general information only and is not legal advice. Hayeswinckle does not prepare Section 32 statements or give legal advice. Speak to a licensed conveyancer or legal practitioner about your property.

What a Section 32 statement is

A Section 32 statement, also called a vendor's statement, takes its name from section 32 of the Sale of Land Act 1962. That is the part of the Act that sets out what the statement must contain.

As Consumer Affairs Victoria explains, a vendor must give the purchaser, before the purchaser signs the contract, a statement signed by the vendor. The vendor may sign that statement by electronic signature.

In plain terms: your buyer needs to see your signed Section 32 before they sign the contract of sale. Putting it in place early gives buyers time to have it checked, and means you are not waiting on paperwork when interest is already there.

What it typically includes

According to Consumer Affairs Victoria, the Section 32 contains information about the property's title, including:

• mortgages
• covenants
• easements
• zoning
• outgoings (for example, rates)
• a declaration if the property is located in a bushfire-prone area

If you are selling in an owners corporation (formerly a body corporate), you must include an owners corporation certificate and accompanying documents in the Section 32 statement. See Conveyancing and contracts for sellers.

Your conveyancer or legal practitioner will work out exactly what your statement needs for your property. If you are in an owners corporation, it is worth asking them to request the certificate early, so it is ready before your campaign starts.

Who prepares it, and when buyers should see it

The Section 32 is usually prepared by your legal practitioner or conveyancer, working with you. Your real estate agent does not prepare it and cannot give you legal advice about it. Usually, the selling agent makes the finished statement available to prospective buyers before the sale or auction. A buyer may then have their own legal practitioner or conveyancer check it.

Consumer Affairs Victoria also describes the statement as having two parts: a principal statement, covering matters such as mortgages, improvements, easements, planning controls, rates and taxes; and an additional statement, prepared if the property is sold under a terms contract, or if there is a mortgage that will not be discharged at settlement. The statement is usually attached to the contract, although it may be provided separately before a contract is available. See Contracts and disclosure statements and the conveyancing page above.

Why accuracy matters

The Section 32 is a legal document, so it must be factually accurate and complete. Consumer Affairs Victoria is clear about what can happen if it is not.

If the statement contains incorrect or insufficient information, a buyer may be able to withdraw from the sale or take legal action against you. A contract is also not binding on a buyer if a Section 32 is not provided, or is incomplete or inaccurate. See Conveyancing and contracts for sellers and Contracts and disclosure statements.

That is why it pays to start early, give your conveyancer or legal practitioner full and up-to-date information, and ask questions if anything is unclear.

How this sits with the contract of sale

The Section 32 and the contract of sale work together. The contract sets out the property details, the parties, the price, the deposit, the balance owing at settlement and any special conditions. The property is sold once you and the buyer have both signed it. See Conveyancing and contracts for sellers.

Since 1 January 2024, there are also limits on passing land tax or windfall gains tax on to a buyer through the contract of sale. If you are not sure whether those rules apply to you, discuss them with your legal practitioner or conveyancer. Do not rely on this article for tax advice.

You can read more about how the contract, cooling-off and settlement fit together in Selling a house in Geelong: from appraisal to settlement and in our full selling guide.

Next steps for Geelong sellers

The practical advice is to get the paperwork moving at the same time as your appraisal, not after the photos are booked. That way the Section 32 can be available to buyers before opens or auction, which is when many will want to read it.

Engage a licensed conveyancer or legal practitioner early. Consumer Affairs Victoria suggests choosing someone you feel comfortable with, obtaining written quotes from several, and checking that a conveyancer is licensed. See Conveyancing and contracts for sellers.

Then talk to a local agent about timing, pricing and the method of sale. You can read about Hayeswinckle, or visit your nearest office in Geelong, East Geelong, Newtown, Highton or Lara.

Ready to get started? Request a sales appraisal.

This article is general information only and is not legal advice. Talk to a licensed conveyancer or legal practitioner about your situation.