Glossary

Section 32

A vendor statement required by Victorian law (Section 32 of the Sale of Land Act 1962). Before a contract of sale is signed, the seller must provide this document disclosing material facts about the property — title details, encumbrances, planning overlays, building permits, and more.

Vendor statement

The formal name for a Section 32 document in Victoria. Other Australian states use similar disclosure regimes under different legislation (e.g. Form 1 in South Australia, Vendor disclosure in NSW).

Contract of sale

The legally binding agreement between buyer and seller. In Victoria, a vendor statement must be provided and acknowledged before the contract is signed. Contracts can be conditional (subject to finance, building inspection, etc.) or unconditional.

Cooling-off period

A statutory right allowing a buyer to withdraw from a property contract within three clear business days of signing in Victoria. Cooling-off does not apply at auctions or if the buyer waives it (via a Section 66W certificate in NSW, or equivalent). A penalty of 0.2% of the purchase price typically applies.

Easement

A legal right held by a third party (neighbour, council, or utility) to use part of the property for a specific purpose — drainage, sewerage, right of way, or power lines. Easements are registered on the title and bind future owners. They are disclosed in the vendor statement.

Encumbrance

A legal claim or liability attached to a property title — including mortgages, caveats, easements, covenants, and statutory charges. All encumbrances must be disclosed in the vendor statement and are registered on the Certificate of Title.

Certificate of Title

The official government record of property ownership and any registered interests (mortgages, easements, caveats). In Victoria, the Land Registry Services maintains the Register. A current title search is included in every vendor statement.

Caveat

A formal notice lodged on the property title by someone claiming an interest in the property (e.g. unpaid creditor, beneficiary under a will). A caveat prevents certain dealings with the title until it is removed or lapsed. Must be disclosed.

Covenant

A restriction registered on title that limits how land can be used — for example, prohibiting subdivision, requiring a minimum setback, or mandating specific building materials. Covenants run with the land and bind all future owners.

Owners corporation (OC)

Formerly called a body corporate. An owners corporation manages the common property of a multi-lot subdivision (apartments, townhouses, commercial buildings). The OC certificate, required in the vendor statement, discloses levies, special levies, litigation, and outstanding maintenance.

Planning overlay

A zone or overlay in the local planning scheme that applies additional controls to land — flood overlay, heritage overlay, bushfire management overlay, vegetation protection, etc. Overlays can restrict development rights and affect insurance. Disclosed in the vendor statement.

Zoning

The planning designation that determines permitted land use — residential, commercial, industrial, rural, etc. Zoning controls affect what can be built on a property and are part of the planning permit history disclosed in the vendor statement.

Building permit

A permit issued by a building surveyor authorising construction or renovation work. The vendor must disclose all building permits issued in the past seven years. Outstanding permits that were never signed off ("open permits") can create issues for buyers.

Due diligence

The process of investigating a property before committing to purchase — reviewing the vendor statement, ordering building and pest inspections, checking planning restrictions, and considering any risks. BuyersIQ assists with the vendor disclosure component of due diligence.

Title search

A formal search of the Land Registry that confirms the current registered owner, any mortgages or encumbrances, and the history of dealings on the title. A current title search is required in the vendor statement.

Statutory disclosure

Information the seller is legally required to disclose before the sale — varies by state. In Victoria, failure to provide a compliant vendor statement allows the buyer to rescind the contract before settlement.

Settlement

The legal completion of a property sale. The buyer pays the balance of the purchase price, and ownership formally transfers. In Victoria, most settlements are now electronic via PEXA (Property Exchange Australia).

Conveyancer / solicitor

The licensed professional who manages the legal aspects of a property transaction — reviewing contracts, conducting searches, managing settlement, and advising on risks. BuyersIQ is a document review tool and does not replace professional legal advice.