Is the Section 32 the same as the contract of sale?

No — they're two separate documents bundled together. The Section 32 (Vendor Statement) is the legally required pre-contract DISCLOSURE document under the Victorian Sale of Land Act 1962. The Contract of Sale is the actual contract you sign. The Section 32 must be given to you BEFORE you sign the contract; if it wasn't, that itself is grounds for rescission. Many buyers find them stapled together and treat them as one document — they're not, and the legal protections attaching to each are different.

What's the difference between Section 32 disclosure and what the building inspector finds?

The Section 32 is what the vendor must legally tell you on paper. The AS4349.1 building inspection is what an independent inspector visually finds on site. They cover different things: the Section 32 discloses planning overlays, building permits, easements, owners corp obligations, and known notices/orders against the property. The building inspection finds physical defects — cracking, damp, electrical issues, etc. Both matter, and a defect not disclosed in the Section 32 that should have been (e.g. an unapproved extension) can give you rescission rights regardless of what the inspector finds.

Can I rescind the contract because the Section 32 is incomplete?

Yes, in many cases — and this right is independent of cooling-off. Under Section 32K of the Sale of Land Act, if the Section 32 contains a material misrepresentation OR omits required information AND the vendor knew (or should have known), you can rescind the contract at any time before settlement. The remedy is full refund of any deposit, plus possible damages. Common grounds: undisclosed building permits, planning overlays missed, unapproved structures, known notices/orders not disclosed. Always get a Victorian conveyancer to review the Section 32 — they catch omissions that don't look like omissions to non-lawyers.

What's a "Section 32 due diligence checklist" — do I need one?

It's a structured checklist of items to verify against the Section 32 before signing. Most Victorian conveyancers provide one as part of their pre-contract review (~$150-$400). Key items: confirm planning zone matches what the agent told you, check for building permits that suggest an extension was done (and verify it was finalised), look for Section 173 agreements (binding owner obligations), check the owners corp insurance and contingency fund for strata, look for any current notices or orders. DIY checklists exist online but most buyers benefit from professional review for the $150-$400 spend.

My Section 32 mentions a "building permit" — should I worry?

Not by itself, but verify two things. First: was the permit issued and FINALISED (i.e., the building inspector issued a Certificate of Final Inspection / Occupancy Permit)? An open building permit means work was approved but never legally completed — and the obligation to finalise transfers to you on settlement, sometimes triggering rectification work to bring the structure up to current code. Second: does the permit match the visible structures on site? Permits for extensions or pools that don't appear to exist (or vice versa) are red flags. The Section 32 should include copies of relevant building permits; if not, request them in writing through the agent before signing.

Section 32 Vendor Statement and Your Building Inspection (Victoria, 2026)

The agent emails you the “Contract Pack.” You open the PDF. It's 87 pages. You skim it for 20 minutes, see nothing that looks alarming, sign the second-to-last page, and email it back.

What you just did was contractually accept a property based on the contents of a legally-required disclosure document you didn't read properly. In Victoria, that document is the Section 32 — and what's in (or not in) it matters more than almost anything else in the purchase.

This is the document that gives you legal grounds to rescind the contract without penalty if the vendor failed to disclose something they should have. It's also the document that most first-home buyers skim and most experienced investors read four times. The difference between the two is usually $30,000-$150,000 of avoided post-settlement surprises.

Here's what's in it, what to look for, what the building inspector cannot see that the Section 32 should disclose, and what to do if you find a gap.

What the Section 32 legally must contain

The Sale of Land Act 1962 (VIC) Section 32 prescribes a list of items the vendor must disclose to you in writing BEFORE you sign the contract. The headline categories:

Title particulars: copy of the registered title, lot/plan number, any encumbrances on title (easements, covenants, mortgages).
Easements, covenants, and other restrictions: rights-of-way, drainage easements, restrictive covenants (e.g., “no fence higher than 1.8m,” “single-storey only”).
Planning information: zoning (residential general / residential growth / mixed-use / etc), overlays (heritage, vegetation, design and development, environmental significance, bushfire management), local planning scheme reference.
Building permits in the last 7 years: copies of all building permits issued for the property in the past 7 years, plus Certificates of Occupancy or Final Inspection.
Owners corporation information (for strata): owners corp register details, financial statements, insurance certificates, levies, minutes of recent meetings, contracts of management.
Notices and orders: any current notices or orders against the property from any authority — local council, EPA, water authority, etc.
Services: connection status for water, sewerage, electricity, gas, telecommunications.
Section 173 agreements: any binding agreements with council under Section 173 of the Planning and Environment Act — these create ongoing obligations on the property owner (e.g., maintain a tree, restrict subdivision).
Outgoings: rates, water charges, owners corp fees, land tax.
GST: whether the property is sold with or without GST included.
Default interest rate:what you'll pay if you delay settlement.

What to actually look for as a buyer

Reading a Section 32 cover-to-cover is a 2-hour job and you won't catch most omissions. What you CAN catch on a 45-minute read is the obvious stuff. The five highest-value items to verify:

1. Planning zone + overlays — does it match what the agent told you?

Agents commonly say “it's residential” without being specific about zone. The Section 32 will name the zone precisely. If it says “Mixed Use Zone” or “Residential Growth Zone,” you might be sitting next to a 5-storey apartment site rezoning. Heritage Overlay, Vegetation Protection Overlay, and Design and Development Overlays all restrict what you can do with the property. If an overlay applies, your renovation budget should assume permit complications.

2. Building permits in the last 7 years

This is the most common Section 32 surprise. If you see a building permit listed (e.g., “Permit 12345 — Extension and alterations, issued 2021”), check two things:

Was a Certificate of Final Inspection or Occupancy Permit issued? If yes, the work is legally complete. If no, the work was approved but never legally finalised — and the obligation transfers to you on settlement. Bringing a 5-year-old half-finished extension up to current code can run $20,000-$80,000.
Does the permit MATCH the visible structures? A permit for a single-storey rear extension where you can see a double-storey extension means there was unpermitted work. Same the other way — permits for structures that don't appear to exist suggest the work was approved but never built (less of an issue, but worth asking about).

3. Notices and orders

Any current notice or order against the property is a red flag. Common ones in inner-Melbourne stock: council orders to remove an unauthorised structure, building order from VBA (Victorian Building Authority), drainage orders from Yarra Valley Water. These typically transfer to the new owner on settlement and the cost of compliance comes out of your pocket.

4. Easements and covenants

Easements give other parties rights over your land — most commonly a 1-3m drainage easement at the rear, an electricity easement along a boundary, or a shared driveway easement. The Section 32 must include a copy of the plan showing exactly where each easement runs. Cross-check against any extension you might want to do — building over an easement is restricted and council approval is rarely granted.

Restrictive covenants are private restrictions on what you can do with the property (single-storey only, no front fence over 1.2m, brick construction only, etc). These are recorded against title and bind successive owners. They're most common on post-2000 estate lots and 1920s-1940s Edwardian/Federation estates.

5. Owners corporation details (for strata)

For apartments, townhouses, and any property under an Owners Corporation, dig into:

Annual budget and levies: is the OC running a surplus, breakeven, or losing money? Underfunded OCs eventually hit owners with special levies for major works.
Capital works fund / sinking fund balance: should be enough to handle major upcoming works. A near-empty fund + an aging roof = a $30K-$100K special levy in your future.
Minutes of recent meetings: any disputes, planned works, insurance claims, or unresolved issues. Owners corps with active litigation are red flags.
Insurance certificate: verify the building is adequately insured. Under-insured strata buildings can leave individual owners exposed in a major loss.

How the Section 32 interacts with your building inspection

The Section 32 tells you what the vendor MUST disclose on paper. The AS4349.1 building inspection tells you what an independent inspector visually finds on site. They're complementary, and discrepancies between them are your biggest negotiation lever.

Examples of Section-32-vs-inspection cross-checks that regularly surface problems:

Inspector finds a clearly-extended rear of the house. Section 32 building permit history shows no extension permit. Result: unpermitted work. This is grounds for both negotiation and, in some cases, rescission under Section 32K.
Inspector flags structural cracking. Section 32 contains a council notice about the structure that the vendor downplayed to the agent. Result: documented evidence the vendor knew about an issue and didn't adequately disclose.
Inspector flags wet-area waterproofing failure. Section 32 shows a recent bathroom renovation permit. Result: defective recent work, potentially still under builder's warranty which you may inherit.
Inspector notes an old asbestos cement garage. Section 32 shows planning overlays restricting demolition. Result: your removal options are more constrained and more expensive than a typical asbestos job.

What to do if you find a Section 32 problem

The remedies depend on what kind of problem and when you find it.

Before signing the contract:The cheapest time. Either decline to sign until the vendor amends the Section 32, or negotiate a price reduction reflecting the issue. If the agent pushes you to sign now and “sort it out later,” refuse — “sort it out later” almost always means “eat the cost.”

During cooling-off (3 business days for VIC private sales — never auction): Rescind the contract using the cooling-off notice. Forfeits $100 or 0.2% of contract (whichever greater) but releases you from the deal. See our cooling-off rights article for the exact mechanics.

After cooling-off but before settlement: If the Section 32 contains material omissions or misrepresentations, Section 32K of the Sale of Land Act gives you the right to rescind the contract — independent of cooling-off, up to settlement. Remedy is return of deposit plus possible damages. This is a powerful right but requires a Victorian conveyancer or property lawyer to enforce; DIY rescission notices are risky.

Negotiate vs rescind: Most documented Section 32 issues end up as negotiation leverage rather than full rescission, because rescission is litigious and slow. Our negotiation framework treats Section 32 findings + building inspection findings as a combined documented dollar ask.

Practical workflow for VIC buyers

The right sequence to actually use the Section 32 effectively:

Day -7 (before signing):Receive the Section 32. Forward it to a Victorian conveyancer for review ($150-$400 for pre-contract review). They'll catch omissions you won't.
Day -3 (before signing):Receive conveyancer's notes. If problems were flagged, address them with the agent in writing BEFORE signing.
Day 0 (signing): Sign the contract with Section 32 issues addressed. Cooling-off period begins.
Day 1-3 (cooling-off): Commission AS4349.1 building inspection + AS4349.3 pest inspection. Cross-check findings against Section 32.
End of Day 3 (cooling-off ends): Decide: proceed, negotiate, or rescind. Use the 5-step framework to make the call.

How Report Decoded fits

Report Decoded analyses your AS4349.1 PDF and gives you the building-side cost breakdown + negotiation language. The Section 32 review is a conveyancer's job — you should always have a Victorian conveyancer doing that pre-contract review, regardless of any tool. What Report Decoded does is compress the building-inspection-to-decision time from the 3-6 hours most buyers spend down to 2 minutes, so you have more of the cooling-off window left for the cross-checks against the Section 32 that actually win you negotiations or rescission rights.

The combined play — conveyancer reviews Section 32 + Report Decoded analyses AS4349.1 PDF + buyer does the cross-check — is the strongest pre-purchase due diligence position any VIC buyer can take, for under $400 total.

Section 32 vendor statement and your building inspection (Victoria, 2026)