A Section 32, or Vendor Statement, is a legal disclosure document that sellers must provide to potential buyers before a contract of sale is signed. In 2026, it must include essential disclosures such as owners corporation certificates, council rates, and land tax obligations. Failure to provide accurate information can lead to contract delays or legal challenges.
Buyers in the Mornington and Bellarine Peninsulas are increasingly scrutinising Vendor Statements for hidden costs and short-stay restrictions. This document acts as the primary transparency tool, ensuring the buyer knows exactly what they are purchasing before committing to a deposit.
Required documentation and costs
A Section 32 requires an owners corporation certificate if the property is part of a strata scheme, which typically costs between $100 and $300. While preparation is often included in the conveyancing fee, vendors should confirm this with their legal representative to avoid unexpected costs. Council rates and body corporate levies must also be clearly disclosed for pro-rata adjustment at settlement.
Land tax obligations for 2026
For investment properties, the land tax adjustment prohibition threshold is $10.7 million (Sourced from current market data, CoreLogic/Cotality, Domain, PropTrack, REIV, RBA, and ATO research current as of April 2026). For contracts below this amount, sellers cannot require buyers to contribute to land tax at settlement. Sellers must absorb all land tax costs up to the settlement date.
Short stay accommodation disclosures
Properties used for Airbnb or Stayz must comply with the Short Stay Accommodation Levy. Hosts with annual bookings under $75,000 had lodgement and payment due by 30 January 2026, while those above $75,000 are on a quarterly cycle (SRO Victoria). From 1 July 2026, the fixed charge component of the Emergency Services and Volunteers Fund Levy increases for non-PPR properties (SRO Victoria).
The pricing alignment risk
There is often a disconnect between a vendor’s reserve and the agent’s advertised price guide. Consumer Affairs Victoria investigates complaints where properties are advertised below the reserve or the agent’s estimated selling price. While some buyers in middle-ring Melbourne suburbs expect guides to be 10–15% below the final sale price, legal compliance requires strict alignment between the guide and the reserve.
Frequently asked questions
Who pays for the Section 32 preparation?
The vendor is responsible for the cost of preparing the Section 32. This is typically managed by a conveyancer or solicitor. While the preparation fee is often bundled into the overall conveyancing costs, specific certificates, such as the owners corporation certificate, may incur separate charges of $100–$300.
Can the buyer pay my land tax at settlement?
Generally, no. For sale contracts below the $10.7 million prohibition threshold, sellers are prohibited from requiring buyers to contribute to land tax at settlement (Sourced from current market data, CoreLogic/Cotality, Domain, PropTrack, REIV, RBA, and ATO research current as of April 2026). The seller absorbs these costs up to the settlement date.
Is an owners corporation certificate mandatory?
Yes, if the property is part of a managed scheme, such as an apartment or townhouse. The certificate is a required component of the Section 32 and provides the buyer with essential information regarding levies, insurance, and any planned capital works or disputes within the owners corporation.
What are the penalties for ignoring the short stay levy?
Non-compliance with Short Stay Levy obligations can result in penalties issued by SRO Victoria. This is particularly relevant for lifestyle properties on the Mornington and Bellarine Peninsulas. Owners must ensure all lodgements, whether annual or quarterly, are completed by the required deadlines to avoid these fines.
Questions to ask your agent
- How does the current price guide align with my reserve to ensure we avoid investigations from Consumer Affairs Victoria?
- Given my property is a non-PPR, how will the July 2026 Emergency Services and Volunteers Fund Levy increase affect my net proceeds?
- For a private sale, what specific settlement terms should we include to mitigate my fixed-rate loan break costs?
This article contains general market information based on data current as at April 2026. It does not constitute financial, legal, or real estate advice specific to your property or circumstances. For an appraisal and tailored advice, speak with a Fletchers agent in your area.