A section 32 statement is intended to give a purchaser important information about the property before the contract is signed. A failure to comply with the disclosure requirements does not automatically make the contract void. Section 32K sets out circumstances in which a purchaser may avoid the contract, including limitations that can prevent avoidance where the vendor acted honestly and reasonably and the purchaser is substantially in as good a position as if the disclosure had been made.
The analysis is fact-specific. The relevant questions include what information was required, what was actually disclosed, whether the omission or inaccuracy was material, what the vendor knew and did, and how the missing information affected the purchaser's position. A buyer should not assume that a minor error gives an automatic right to terminate, nor that a vendor can always cure an omission after signing.
Separate statutory provisions address false or misleading information and attempts to contract out of disclosure obligations. Depending on the facts, a purchaser may also have rights under the contract or other laws. The appropriate remedy can depend on whether the buyer wants to proceed, avoid the contract or pursue compensation.
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If a disclosure problem is identified, preserve the contract, vendor statement and supporting documents, record when the issue came to light, and obtain advice promptly. Do not stop performing the contract or purport to rescind without checking the statutory requirements and any applicable time limits.
Law referenced: Sale of Land Act 1962 (Vic) ss 32, 32K, 32L and 32N.