Should a Lawyer Complete a Contract Review Before I Sign the Contract?

March 27, 2025

If you’ve bought or are buying a property in Victoria, then you’ve no doubt come across the Section 32 Statement. It’s a crucial document in real estate transactions. But do you fully understand what’s inside it? Like, really understand it? 


Failing to review this document properly can lead to legal headaches, unexpected costs, or even losing your dream home. Whether you're a first home buyer or an experienced investor, understanding Section 32 requirements is key to making a safe property purchase. 


Here’s a guide breaking down the hidden aspects of a Section 32 Statement in Victoria, and why getting legal advice before signing is essential.

What is a Section 32 Statement and Why Does It Matter?

A Section 32 Statement (also known as a Vendor Statement in Victoria) is a legal document required under the Sale of Land Act 1962. It must be provided by the seller to the buyer before a contract of sale is signed.


This statement includes essential details about the property, such as:


✔ Title information – who legally owns the property.
✔ Mortgages, easements, and caveats – financial or legal claims on the land.
✔ Zoning and planning details – what the property can legally be used for.
✔ Outstanding rates and taxes – any unpaid council rates that could become the buyer’s responsibility.


Following a Section 32 checklist before signing can help you avoid unexpected legal complications. But many buyers assume that if a document is provided, everything must be in order. That’s not always the case.

Common Issues Found in Section 32 Statements

Not all Section 32 Statements in Victoria are accurate or complete. Some may contain missing details, errors, or misleading information that could impact your purchase. 


Here are three major risks buyers need to be aware of:

1. Undisclosed Property Defects

A Vendor Statement in Victoria does not typically disclose structural issues or defects. Some key risks include:


  • Unapproved renovations that could violate building codes.
  • Pest infestations that could cause costly damage.
  • Plumbing and electrical issues that require expensive repairs.


If you’re buying property, don’t assume everything is fine - conducting independent building and pest inspections is crucial. A property purchase is a big investment, so now’s not the time to skimp on costs. It should be considered part of your due diligence.



2. Zoning and Planning Restrictions

Even if a property looks perfect, local zoning laws might restrict how you can use it. Some common zoning problems include:

  • Future rezoning that affects property value or building rights.
  • Heritage overlays that prevent modifications to the building - so many people get caught out on this one!.
  • Commercial property law in Melbourne that restricts certain business activities.


If you’re investing in real estate law in Melbourne, always verify planning details before purchasing.



3. Existing Mortgages or Caveats

A Section 32 Statement in Victoria should disclose any financial claims on the property, such as:

  • Mortgages that haven’t been paid off.
  • Caveats from third parties with legal interest in the land.


If these are not properly dealt with, they can cause delays in settlement or legal disputes later on. A property dispute lawyer in Melbourne can help identify and resolve such issues before they become major problems.


Should a Lawyer Review Your Contract Before You Sign?

Absolutely—every buyer should get legal advice before signing a contract. While a conveyancer can handle paperwork, only a property lawyer in Melbourne can offer legal protection.



Why Hire a Property Lawyer?

A real estate lawyer in Melbourne can:


✔ Spot hidden risks in the Section 32 Statement before you commit.
✔ Ensure the contract is fair, with no confusing or tricky clauses.
✔ Advise on property law in Melbourne, zoning laws, and restrictions.
✔ Protect you from misleading vendor claims that could cause legal trouble later.


If you’re dealing with commercial property law in Melbourne, the stakes can be even higher - seeking professional legal advice is essential.


How to Ensure Your Section 32 is

Accurate and Complete

Before signing a contract, take these steps to protect yourself and safeguard your new purchase:

1. Hire a Property Lawyer for a Contract Review

  • A property lawyer in Melbourne can thoroughly review your Section 32 Statement and flag any legal risks.
  • They’ll confirm if there are hidden fees, restrictions, or outstanding debts tied to the property.


2. Request a Building and Pest Inspection

  • Don’t rely solely on the vendor statement. A professional inspection can reveal hidden defects, pest infestations, or structural damage. After all, it’s what you can’t see that counts just as much as what you can.

3. Verify Planning and Zoning Laws

  • Visit your local council’s website or consult a lawyer to confirm zoning laws.
  • Ensure the property isn’t affected by future development restrictions or environmental overlays.



4. Understand the Difference: Conveyancer vs. Lawyer

  • A conveyancer can help with settlements and paperwork but cannot provide legal advice on complex issues.
  • A property lawyer in Melbourne can advise on contract terms, zoning laws, and legal disputes, making them the safer option.


Don’t Leave Your Biggest Purchase to Chance

A Section 32 Statement in Victoria isn’t just another formality in the buying process. It’s a crucial legal document that can reveal hidden risks in a property purchase. Failing to review it properly could lead to financial losses, legal troubles, or purchasing a property that doesn’t meet your needs.


Before signing any contract, ask yourself:


✔ Has a lawyer reviewed my Section 32 Statement?
✔ Do I understand the property’s legal status and restrictions?
✔ Am I confident there are no hidden issues that could cost me thousands?


If you’re unsure about any of these, don’t sign yet! Seek legal advice from a property lawyer in Melbourne to ensure your investment is safe and secure.

Need expert legal advice? Whether you're a first home buyer or an investor, getting legal guidance can save you time, money, and stress. Contact an experienced property lawyer in Melbourne today to ensure your contract is watertight and your investment is secure.


MLS Legal are experts in property law and have helped people just like you protect themselves from Section 32 pitfalls!


Get in touch with MLS Legal today and ensure your contract is secure.

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