The Division 2 disclosure map, section by section
A "section 32" is not one section. It is seventeen provisions, ss 32 to 32P, each with a defined subject. Reading it as a single blob is how buyers miss the two or three lines that matter to them.
| Provision | Subject | What the Act requires |
|---|---|---|
| s 32 | The obligation itself | The vendor must give the purchaser, before the purchaser signs the contract, a statement signed by the vendor containing the matters and attaching the documents specified in Division 2. s 32(2) permits electronic signature. |
| s 32A | Financial matters | Mortgages not being discharged, statutory charges, and the rates, taxes, charges and other outgoings affecting the land (or a statement that they do not exceed a specified amount). Since 2024 also whether the land is tax reform scheme land for Commercial and Industrial Property Tax, its AVPCC, and its entry date. |
| s 32B | Insurance | Particulars of the vendor’s policy where the land does not remain at the vendor’s risk, and — where s 137B of the Building Act 1993 applies to a residence — particulars of cover under the statutory insurance scheme. |
| s 32C | Land use | Easements, covenants and similar restrictions (registered or not) and any existing failure to comply with them; whether the land is in a designated bushfire prone area; whether there is no road access; and the planning scheme name, the responsible authority, the zoning, and the name of any planning overlay affecting the land. |
| s 32D | Notices | Notices, orders, declarations, reports, recommendations or approved proposals of a public authority or government department directly and currently affecting the land; livestock-disease or agricultural-chemical contamination notices; and any notice of intention to acquire served under s 6 of the Land Acquisition and Compensation Act 1986. |
| s 32E | Building permits | If there is a residence on the land, particulars of any building permit issued under the Building Act 1993 in the preceding 7 years for a building on the land. |
| s 32F | Owners corporation | Where an owners corporation affects the land: either the prescribed information or a current owners corporation certificate under s 151 of the Owners Corporations Act 2006, plus the accompanying documents — or, if the owners corporation is inactive, a statement that it is inactive. |
| s 32G | GAIC | Whether the land is subject to a work-in-kind agreement or a growth areas infrastructure contribution, and attachment of the relevant release, deferral, exemption, staged-payment, no-liability or GAIC certificate. |
| s 32H | Services not connected | Which of electricity, gas, water, sewerage and telephone are NOT connected to the land. |
| s 32I | Evidence of title | A copy of the Register Search Statement and the diagram location for land under the Transfer of Land Act 1958; otherwise the last conveyance or other evidence of title; the vendor’s right to sell if not the registered proprietor; and certified or latest-version plans where the land is subject to a subdivision. |
| s 32J | Documents in lieu | Where required information already appears in a certificate, notice or other document from a relevant authority, the vendor may attach that document instead of restating the information. |
| s 32K | Rescission | False information, failure to supply required information, or failure to give the statement before the purchaser signs may result in rescission — subject to the limit in s 32K(4). |
| s 32L | Offence | A vendor must not knowingly or recklessly supply false information, fail to supply required information, or fail to give the statement. Penalty: 300 penalty units for a body corporate, 60 penalty units in any other case. |
| s 32M | Further rescission right | The purchaser may rescind if, before accepting title, a notice of intention to acquire the land has been served under s 6 of the Land Acquisition and Compensation Act 1986. |
| s 32N | Anti-contracting-out | A contract provision that excludes, modifies or restricts any provision of Division 2 is void and of no effect. |
| s 32O | No second statement | Where the same parties enter a subsequent contract over the same land in substantially the same terms, the vendor need not give another section 32 statement. |
| s 32P | Forest carbon rights | An agreement to transfer a forest carbon right within the meaning of the Climate Change Act 2010 is not a contract for the sale of land for the purposes of Division 2. |
Summarised from the authorised text. Where this table and the Act differ, the Act governs — read the source PDF linked in the references below.
Note what is NOT in that list. There is no obligation to disclose the physical condition of the building, no obligation to disclose a pest problem, no obligation to volunteer a history of flooding that has not generated a notice, and no obligation to explain what a disclosed overlay actually prevents you from doing. Division 2 is a disclosure regime about the legal and financial status of the land, not a condition report.
When s 32K and s 32M allow a purchaser to rescind — and when s 32K(4) does not
s 32K applies where a vendor supplies false information in the statement or in a document attached to it, fails to supply all the information Division 2 requires, or fails to give the purchaser a signed statement before the purchaser signs the contract. Where it applies, s 32K(2) and (3) provide that the purchaser may rescind at any time before the purchaser accepts title and becomes entitled to possession or to the receipt of rents and profits.
s 32K(4) — the limit almost every summary leaves out
Despite subsections (2) and (3), the purchaser may NOT rescind if the court is satisfied that the vendor acted honestly and reasonably and ought fairly to be excused for the contravention, AND that the purchaser is substantially in as good a position as if all the relevant provisions of Division 2 had been complied with. Both limbs must be satisfied. A defect in a section 32 is therefore the beginning of a legal question, not the end of one — whether any particular situation gives rise to a right to rescind is a question for a property lawyer on the facts.
s 32M is a separate and narrower right: the purchaser may rescind if, at any time before accepting title and becoming entitled to possession or to the receipt of rents and profits, a notice of intention to acquire the land has been served under s 6 of the Land Acquisition and Compensation Act 1986. That is the compulsory-acquisition trigger, and it operates whether or not the section 32 was defective.
- The rescission window in both sections closes at the same point: acceptance of title plus entitlement to possession or to rents and profits.
- s 32L makes it an offence for a vendor to knowingly or recklessly supply false information, fail to supply required information, or fail to give the statement. Penalty: 300 penalty units for a body corporate, 60 penalty units in any other case.
- s 32N makes void any contract provision that excludes, modifies or restricts a Division 2 provision — a clause purporting to waive the vendor’s disclosure obligations has no effect.
- s 32O means a vendor need not issue a fresh statement where the same parties enter a subsequent contract over the same land in substantially the same terms.
The due diligence checklist is a separate obligation — and it need not be attached
The checklist lives in Division 2A (ss 33–33C), not in Division 2. Different division, different obligation, different consequence for breach — and a different test for compliance.
s 33A — what the checklist is
A due diligence checklist is a checklist prepared for prospective purchasers of vacant residential land or land on which there is a residence to assist purchasers in identifying information they may wish to obtain in respect of the land for sale.
s 33B(1)–(5) — who must make it available, and from when
s 33B(1) requires a vendor offering vacant residential land, or land on which there is a residence, to ensure that a due diligence checklist is made available to any prospective purchaser from the time the land is offered for sale. Penalty: 60 penalty units. s 33B(2) requires the checklist to be in the form approved by the Director of Consumer Affairs Victoria, also 60 penalty units. s 33B(3) then removes both obligations from the vendor where the vendor has engaged a licensed estate agent to act, and s 33B(4) and (5) impose the identical obligations, with the identical 60-penalty-unit exposure, on that agent.
s 33B(6) — what "made available" actually means
The checklist does not have to be attached to the section 32
For the purposes of s 33B, a due diligence checklist is made available if (a) copies are on display or offered to prospective purchasers at any inspection held of the land, AND (b) any internet site maintained by the vendor or by the agent, where the land is offered for sale, allows access to a copy either directly or by linking to another internet site where a copy may be obtained. That is the statutory test. Attaching the checklist to the vendor statement is a widespread industry convention and is perfectly acceptable — but it is not what the Act requires, and a section 32 without one is not defective on that ground.
The practical consequence for a buyer is worth being precise about. A missing or non-approved checklist is a contravention of Division 2A carrying a 60-penalty-unit exposure for whoever bore the obligation. It does not, of itself, engage the s 32K rescission machinery, because s 32K operates on Division 2 — the vendor statement — and the checklist is not part of the vendor statement. Two obligations, two divisions, two different consequences.
s 33C completes the chain: the Director of Consumer Affairs Victoria must publish a copy of the approved checklist on the Consumer Affairs Victoria internet site. A version that is not in the Director’s approved form does not satisfy s 33B(2), so the published version is the one to use.
The approved due diligence checklist, published by Consumer Affairs Victoria
What changed recently, and why older section 32 guides are now incomplete
Division 2 has been amended repeatedly since it was substituted in 2014, and two of those amendments land squarely on investment purchases. Content written before them describes a disclosure regime that no longer exists.
| Provision | Amending Act | Effect |
|---|---|---|
| s 32A(ca) | Act No. 16/2024 s. 63 | Adds Commercial and Industrial Property Tax disclosure: whether the land is tax reform scheme land, its AVPCC, and — if it is — its entry date. |
| s 32B(b) | Act No. 17/2025 s. 79 | Substituted, so that where s 137B of the Building Act 1993 applies to a residence, the statement must disclose particulars of cover under the statutory insurance scheme. |
| s 32C(b) | Act No. 46/2018 s. 78 | Substituted, so the bushfire disclosure keys to a bushfire prone area designated under s 192A of the Building Act 1993. |
| s 33 (definition) | Act No. 14/2019 s. 24 | The Division 2A definition of "licensed estate agent" was repealed; the term now takes its meaning from the general law and the Estate Agents Act 1980. |
The s 32A(ca) addition is the one most likely to matter to a commercial or industrial buyer: since it was inserted, the vendor statement must state whether the land is tax reform scheme land within the meaning of the Commercial and Industrial Property Tax Reform Act 2024, give the AVPCC most recently allocated to the land, and — if it is scheme land — give its entry date. That entry date is the trigger for the whole Commercial and Industrial Property Tax transition, so it is the single most consequential new line on the form.
What a section 32 will not tell you
A complete, accurate, fully compliant section 32 can still leave you buying a property you cannot do anything with. Everything below is outside the disclosure regime and has to be investigated independently.
- The physical condition of the building. Structure, roof, wiring, plumbing, damp, movement — none of it is disclosed. That is a building inspection.
- Pest damage and termite activity. Not disclosed. That is a pest inspection, and in most of Melbourne it is worth doing at the same time as the building inspection.
- What a disclosed overlay actually stops you doing. s 32C requires the overlay’s NAME. It does not require any explanation of its effect on a permit application, a second dwelling, a subdivision or a demolition.
- Where the easement physically runs and what can be built over it. s 32C discloses that an easement exists and describes it; the practical build envelope it leaves you is a survey question.
- Whether the land can take a second dwelling or be subdivided. Not disclosed, not implied, and not answerable from the statement alone.
- Actual rental demand, achievable rent, or vacancy in the area. Nothing in Division 2 touches the investment case.
- Flood or fire history that has not produced a notice, order or designation captured by s 32C(b) or s 32D.
The independent checks we run on every property before an offer
How to read the s 32C planning disclosure properly
s 32C(d) requires four specific things for land to which a planning scheme applies: the name of the planning scheme, the name of the responsible authority, the zoning of the land, and the name of any planning overlay affecting the land. Four names. No commentary, no severity, no explanation of what any of them do — and the overlay names are frequently the shortest and most consequential lines in a sixty-page document.
That is why the land component is worth reading with a specific build in mind rather than in the abstract. Across the 345 purchases PremiumRea publishes as open data (settled January 2023 to September 2025, DOI 10.5281/zenodo.20095886), the median land size was 652 m² and the median purchase price was $676,730 — block sizes at which an easement along a boundary or a single overlay code disclosed under s 32C routinely decides whether a second dwelling is feasible at all.
- Read the zone and every overlay code out of s 32C and look each one up independently — the vendor statement gives you the code, not the control.
- Obtain your own planning property report rather than relying on the vendor’s summary, and check it against the certificate attached under s 32J.
- Read the s 32C(a) easement and covenant description alongside the title plan attached under s 32I. A single-line covenant restricting the number of dwellings on a lot defeats a second-dwelling strategy no matter what the zone allows.
- Check s 32C(b) for a bushfire prone area designation under s 192A of the Building Act 1993 — it changes the building requirements and the cost of construction, not just the paperwork.
- Check s 32D for a notice of intention to acquire under s 6 of the Land Acquisition and Compensation Act 1986, which is also the s 32M rescission trigger.
- Check s 32E for building permits issued in the preceding 7 years — an absent permit for visible work is a question to ask before you sign, not after.
Source · CC-BY 4.0
Melbourne Investment Property Portfolio (2020–2026) · 345 transactions