A breach of contract by a vendor – the seller – occurs when they fail to fulfil their obligations as outlined in the Section 32 statement and the sales contract. As of December 2025, this can have significant legal and financial consequences for the seller.
In Melbourne, and particularly within the Eastern Suburbs where Fletchers operates, the most common vendor breaches relate to disclosure issues within the Section 32 statement. This statement details all known property defects, planning restrictions, and other relevant information. If a buyer discovers a material fact wasn’t disclosed – for example, an unapproved renovation or a boundary dispute – they typically have a cooling-off period (currently 3 business days, though changes are announced for 2027) to rescind the contract. The vendor may then be required to remedy the issue, negotiate a price reduction, or face legal action. More serious breaches, such as refusing to allow access for a final inspection, can lead to specific performance orders from VCAT (Victorian Civil and Administrative Tribunal) compelling the sale, or the buyer seeking damages. Legal costs associated with resolving these disputes can quickly escalate, potentially exceeding $10,000 – $20,000. Currently in Melbourne, buyers are increasingly diligent with building and pest inspections, and legal due diligence, making undisclosed issues more likely to be discovered.
Understanding your contractual obligations is crucial, and thorough preparation with a qualified conveyancer and experienced agent – like those at Fletchers with over 105 years of local expertise – is the best way to minimise the risk of a breach.