Section 32 Vendor Statements Explained (and Red Flags to Watch For)

What is in a Section 32?

The Section 32 is the seller's compulsory disclosure about the property. It brings together the key legal and financial information a buyer needs, including:

• The title, including any mortgages, covenants, easements and caveats
• Planning and zoning information, and any overlays affecting the land
• Rates, land tax and other outgoings
• Owners corporation details, if the property is in one
• Any notices, orders or building permits issued in the last seven years
• Services connected to the property, such as water, sewerage and electricity

Red flag one: covenants and easements on the title

A restrictive covenant can limit what you do with the property, for example by restricting the block to a single dwelling or controlling building materials. An easement gives someone else a right over part of your land, such as a drainage or right-of-way easement.

Neither is necessarily a dealbreaker, but if you plan to renovate, extend or develop, they can stop your plans cold. Read them against what you intend to do with the property.

Red flag two: planning overlays

Overlays such as a Heritage Overlay, a Land Subject to Inundation Overlay, or a Significant Landscape Overlay can affect what you can build and whether you need a planning permit. A heritage overlay can restrict changes to the outside of the home. A flood-related overlay can affect building and insurance. Check which overlays apply and what they mean for your plans.

Red flag three: owners corporation surprises

If the property is in an owners corporation, the Section 32 should include an owners corporation certificate. Look for high or rising fees, a special levy for major works, a maintenance fund that is underfunded, or a dispute within the corporation. These can turn a good buy into an expensive one.

Red flag four: unapproved building works

If a previous owner added a room, deck, carport or studio without a building permit or final inspection, that can become your problem after settlement. The Section 32 should disclose building permits from the last seven years. If there is obvious work on the property with no matching permit, it is worth asking questions.

Red flag five: what is missing

Sometimes the concern is not what the Section 32 says, but what it leaves out. An incomplete or vague vendor statement can be a warning sign, and in some cases a materially deficient Section 32 gives a buyer rights to end the contract. This is exactly the kind of issue a property lawyer is trained to spot.

Get it checked before you sign

A Section 32 can run to dozens of pages of certificates and legal references, and the important detail is easy to miss. Having it reviewed by a conveyancer or property lawyer before you sign is the single best way to avoid an unpleasant surprise. Orange Legal Group reviews Contracts of Sale and Section 32 statements within one to two business days.