Section 32 checklist: what to check before you sign

Most buyers glance at a Section 32 and hand it to their conveyancer without reading it. Some skip it entirely. Both are mistakes. Understanding what to look for helps you ask better questions, spot problems early, and avoid buying something that will cause trouble later.

Prefer to tick things off as you go? Use our interactive Section 32 checklist — it saves your progress as you work through the document.

For deeper background on each element, see our complete Section 32 (Vendor's Statement) guide. For an explanation of how it differs from the contract, read our post on Section 32 vs contract of sale.

1. Title and ownership

Check that the vendor named in the Section 32 is the registered owner shown on the title. Look at the folio identifier (the title reference number) and confirm the property description matches the address and land dimensions you expect.

If there are multiple owners, confirm they all appear in the vendor details and that all will sign the contract.

2. Mortgages and charges

The Section 32 must list any mortgage, charge, or encumbrance registered on the title. A bank mortgage is normal and will be discharged at settlement when the vendor repays their loan. What you want to confirm is how many there are and who holds them.

Multiple mortgages, or a mortgage held by a private lender rather than a bank, can make discharge arrangements more complex. Your conveyancer should flag this.

3. Caveats

A caveat is a formal notice that someone is claiming an interest in the property. If one appears on the title, it must be removed before the property can transfer to you. Ask your conveyancer who lodged it and why, and confirm there is a plan to remove it before settlement.

4. Easements

Easements grant someone else a right to use part of your land. Common ones include:

• Drainage easements along the rear or side of a block
• Utility easements for electricity, gas, or water infrastructure
• Carriageway easements giving a neighbour the right to cross your land

An easement at the back of a long block may be inconsequential. An easement that runs through the area where you planned to build an extension is a genuine constraint. Read the details of each one. See our guide to reading a title search for how easements appear on the certificate of title.

5. Restrictive covenants

A restrictive covenant limits how the land can be used or what can be built on it. Examples include restrictions on building materials, limits on the number of dwellings, or prohibitions on commercial use.

Covenants are registered on title and generally bind all future owners. If one is listed, read it in full and assess whether it conflicts with anything you intend to do with the property.

6. Planning zone

The Section 32 must disclose the planning zone. The zone determines what the land can be used for and what types of development require a permit. A Neighbourhood Residential Zone has different rules from a General Residential Zone or Residential Growth Zone.

If you are buying with any intention to develop or subdivide, the zone is critical. Read our explainer on planning zones and overlays to understand what each zone means in practice.

7. Planning overlays

Overlays sit on top of the planning zone and add extra requirements or restrictions. Each overlay listed in the Section 32 deserves attention:

• Heritage overlay: limits on what you can do to the exterior and structure of a building
• Flood overlay: affects what can be built and impacts insurance premiums
• Bushfire Management Overlay: construction standards and vegetation clearing restrictions
• Design and Development Overlay: controls on height, setbacks, and building form

A heritage overlay on a Victorian terrace is common and manageable. Multiple overlays on a property you want to significantly develop can be a major hurdle.

8. Council rates and water rates

The Section 32 discloses annual outgoings including council rates and water rates. Check the amounts and whether any outstanding balances are listed. Outstanding rates become your responsibility if not cleared before settlement.

Your conveyancer will calculate an adjustment at settlement so you only pay from the settlement date forward.

9. Owners corporation

If the property is an apartment, townhouse, or part of any common-property development, there will likely be an owners corporation (OC). The Section 32 must include an OC certificate. Review:

• Annual levies: what you will pay each year for maintenance and insurance
• Special levies: any one-off amounts in place or proposed for major works
• Legal proceedings: any disputes or claims the OC is involved in
• Financial statements: the OC's reserves and financial health

An OC with a healthy reserve fund and no outstanding special levies is a good sign. One with depleted finances and large pending special levies requires careful thought.

10. Building permits

The Section 32 should disclose building permits issued in the last seven years. For each permit listed, check whether a certificate of final inspection or occupancy was issued to close it out.

A permit that was opened but never finalised can indicate work that was never inspected or approved. This can complicate future works and creates a disclosure problem when you later sell. If any permits are listed without a final certificate, ask what happened. See our guide on building permits vs occupancy permits for an explanation of what each document means.

11. Notices and orders

Outstanding notices or orders from councils, courts, or state authorities must be disclosed. These can include:

• Council orders to demolish, repair, or rectify a structure
• EPA notices regarding soil or groundwater contamination
• Orders under heritage, planning, or building legislation

Any notice listed in the Section 32 is a potential problem. Ask your conveyancer to explain the nature and likely cost of each one before proceeding.

12. Section 32 completeness

The vendor warrants the Section 32 is complete and accurate. Before you finish, ask yourself whether anything important seems to be missing. Common gaps include:

• No OC certificate for a property that clearly has common property
• Permits listed without corresponding final certificates
• Outgoings that seem unusually low for the area

If something seems absent, ask before signing. A Section 32 that is technically filed but missing key disclosures is not a document you want to rely on.

What can you do if a Section 32 is wrong or misleading?

If a Section 32 contains materially false information or omits required disclosures, there may be legal avenues available to the buyer, but they are limited, time-sensitive, and depend entirely on the specific defect and circumstances. Get legal advice immediately if you discover a problem after signing.

The better protection is to find problems before you sign. That is what this checklist is for.

Can you sign a contract without reading the Section 32?

Legally, yes. Practically, no. Signing a contract commits you to the purchase. If the Section 32 disclosed something that would have changed your decision, you generally cannot use that as grounds to exit after signing.

At auction there is no cooling-off period, so the Section 32 is the only document you have to assess legal risk before you bid. Read it before auction day, not on the way there.

Do you still need a conveyancer if you use this checklist?

Yes. This checklist helps you understand what you are looking at and what to ask about. A conveyancer is trained to interpret what each element means in your specific circumstances. Easements have legal descriptions that require expertise to read. Planning overlays interact with each other. OC financials require context about the age and condition of the building.

Read the Section 32 before your conveyancer does so you can ask informed questions. Let your conveyancer make the legal assessment.

Sources

• Sale of Land Act 1962 (Vic), section 32: the disclosures a Vendor's Statement must contain (title, encumbrances, planning, outgoings, building permits in the previous seven years, owners corporation, and notices).
• Consumer Affairs Victoria: Buying and selling property: the regulator's plain-language guidance on due diligence and disclosure before signing.

Sources verified 25 July 2026.