What is a vendor’s statement and how does it work?

A vendor’s statement – also known as section 32 – is a document that tells potential buyers certain things about the property title they should know before signing a contract to purchase.

A vendor’s statement discloses information not readily found by inspecting a property. If you’re considering buying a property, it’s critical to get the vendor’s statement checked by your own legal practitioner or conveyancer.

It’s important to get legal advice on the vendor’s statement. Picture: Getty

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What does a vendor’s statement cover?

• Mortgages: written contracts giving the lenders of finance certain rights over the property
• Covenants: agreements that require the property owner to do (or refrain from doing) something. For example, a covenant could state that no more than one dwelling may be built on the land
• Easements: a right held by one person to use another’s land. For example, for drainage and sewerage pipe
• Zoning: how the council will allow the land to be used
• Outgoings: for example, rates
• A declaration if the property is in a bushfire-prone area.

The seller must provide a vendor’s statement to prospective buyers before any contract of sale is signed.

What is not included in a vendor’s statement?

The vendor’s statement does not provide information about:

• The condition of buildings;
• Whether they comply with building regulations;
• The accuracy of measurements on the title.

Important information to know

The seller is legally responsible for the vendor’s statement, which is usually prepared by their legal adviser. A vendor’s statement is a legal document – it must be factually accurate and complete. If it contains false, incorrect or insufficient information, a buyer may be able to withdraw from the sale or take legal action.

Buyers should also consider getting a building inspection from a qualified building inspector before signing a contract of sale.