When you’re transacting property, a single undisclosed detail can derail the deal or cost you thousands. Under Victorian law, that detail is called a material fact - and failing to reveal it is more than poor form; it’s illegal.

What exactly is a material fact?

A fact is material if:

1. The average buyer would consider it important when deciding whether to purchase or what price to pay; or
2. You know it is important to a specific buyer.

Put simply, if the information could influence a reasonable person’s decision, it must be laid on the table.

Common examples

• Combustible cladding or asbestos on the property
• Previous use as an illicit drug laboratory
• History as the scene of a homicide or other major crime
• Building works completed without the required planning or building approvals

The Victorian legal framework

The Sale of Land Amendment Act 2019 makes full disclosure non‑negotiable. Since 1 March 2020, vendors and agents must not knowingly conceal a material fact. Breaches attract serious penalties:

• Fines exceeding $19,000 (120 penalty units); and/or
• Up to 12 months’ imprisonment.

These rules apply to all land - residential, commercial, and rural.

How is disclosure made?

Material facts are captured in the Section 32 Vendor Statement. The document must reach a purchaser before they sign the contract of sale. If key details are missing or wrong, the buyer can walk away any time before settlement.

Why radical transparency matters

Transparency protects both sides: buyers avoid nasty (and costly) surprises, while sellers steer clear of fines, lawsuits, and reputational damage. At Cottage & Castle we advocate for evidence over emotion - the fastest route to a fair, drama‑free outcome.

A cautionary tale: 30 Omama Rd, Murrumbeena

The Melbourne home at 30 Omama Rd was once the site of a murder - a clear material fact that was not disclosed to early prospects. After a full renovation the property eventually set a suburb record, but the controversy underscored the legal and ethical risk of silence.

Key takeaways

• If in doubt, disclose. The law favours openness, and so do informed buyers.
• Get your Section 32 right. Accuracy today prevents contract terminations - and courtroom dramas - tomorrow.
• Seek expert guidance. Whether you’re buying or selling, align with professionals who place client‑first integrity above a quick commission.

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Presenting a property in its best light is fine; covering up its true condition is not.

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Need clarity on a potential material fact?

We’re here to help you navigate Victorian disclosure requirements with calm confidence and zero guesswork.

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