Quick Summary
Before buying a property, it’s essential to understand the key legal documents involved — the Contract of Sale and the Vendor’s Statement (Section 32).
These documents outline the terms of your purchase, the property details, and important legal disclosures that protect both you and the seller.
What Is a Contract of Sale?
A Contract of Sale is a legally binding agreement between the buyer and the seller of a property.
It sets out the agreed terms of the transaction and becomes legally enforceable once both parties have signed.
A property is officially sold when the seller accepts the buyer’s signed offer and both have signed the contract.
What the Contract Includes
A standard Contract of Sale will detail:
- The property address and legal description
- The names of the buyer and seller
- Details of the real estate agent (if applicable)
- The names and contact details of both parties’ conveyancers or solicitors
- The sale price and deposit amount
- The balance owing at settlement
- Any special conditions, such as “subject to finance” or “subject to building and pest inspection”
The contract must also specify whether the sale price includes or excludes Goods and Services Tax (GST).
Generally, GST applies only to new properties not established homes, unless the seller is registered for GST.
What Is a Section 32 (Vendor’s Statement)?
Before a property can be sold in Victoria, the seller is legally required to provide the buyer with a Vendor’s Statement, also known as a Section 32.
This document is governed by Section 32 of the Sale of Land Act 1962 and ensures full transparency between the seller and buyer.
What the Section 32 Must Include
The Vendor’s Statement discloses important information about the property, such as:
- Title details and ownership information
- Mortgages, covenants, or easements that may affect the property
- Rates, zoning, and other planning information
- Services connected to the property (such as electricity, gas, water, and sewerage)
- Details of any building permits issued within the past seven years
This statement is typically:
- Prepared by the seller’s conveyancer or solicitor
- Signed by the seller
- Attached to the Contract of Sale
- Made available to potential buyers before auction or sale
Because it’s a legal document, it must be accurate and complete. If incorrect or misleading information is provided, the buyer may have the right to withdraw from the contract or pursue legal action.
Why These Documents Matter
Understanding your Contract of Sale and Section 32 helps protect your financial interests and ensures you know exactly what you’re buying.
Errors or omissions in either document can delay your settlement or even jeopardise your purchase.
At Pinpoint Finance, we always recommend having your conveyancer or solicitor review these documents before signing especially if any clauses or terms are unclear.
How Pinpoint Finance Supports You
Our role doesn’t stop at helping you secure finance — we also ensure you’re fully informed about every part of your property purchase.
We’ll help you:
- Understand how your loan pre-approval links to the “subject to finance” clause
- Coordinate timelines between your lender and conveyancer
- Review documentation requirements before you sign a contract
- Stay prepared for valuation, settlement, and lender conditions
If you’re preparing to buy a property or need help reviewing your Section 32 and finance clauses, contact info@pinpointfinance.com.au.