In Victoria, a vendor statement — formally known as a Section 32 statement — is a legal document that every seller must provide to a buyer before a contract of sale is signed. It discloses key information about the property that could affect a buyer’s decision to purchase.

What Does a Vendor Statement Contain?

• Title details — ownership, encumbrances, mortgages, caveats
• Planning and zoning information — what can be built or done with the land
• Building permits issued in the last 7 years
• Owner-builder warranty insurance information
• Outgoings — council rates, water rates, owners corporation fees
• Services connected — water, sewerage, drainage, gas, electricity
• Road and infrastructure information — whether any road widening or compulsory acquisition affects the property
• Bushfire and flood overlays

What Should I Look For in a Vendor Statement?

A property advisor or conveyancer should review the vendor statement before you sign. Key red flags include:

• Unapproved building works — permits issued but no certificate of final inspection
• Caveats on the title — indicating a third party has a financial interest in the property
• Owners corporation levies that are higher than expected
• Planning overlays that restrict future development
• Compulsory acquisition notices for nearby road or infrastructure works

Common Mistakes Buyers Make With Vendor Statements

• Not reading it before signing the contract
• Assuming the real estate agent has checked it on their behalf
• Not engaging an independent conveyancer or property advisor to review it
• Missing planning overlays that affect renovation or development potential

Can I Pull Out Based on a Vendor Statement Issue?

If the vendor statement is materially inaccurate or contains false information, the buyer may have the right to rescind the contract. This is a legal matter — get independent advice from a conveyancer or property advisor before acting.

How Collings Property Advisory Can Help

A Collings Property Advisor reviews the vendor statement as part of the buyer advisory service — identifying red flags, reviewing planning information and ensuring you understand what you are buying before you sign. Fixed fee $4,500 + GST.

FAQs

Is a vendor statement the same as a Section 32?

Yes. In Victoria, the vendor statement is prepared under Section 32 of the Sale of Land Act 1962 — which is why it is commonly called a Section 32 statement.

Who prepares the vendor statement?

The seller’s conveyancer or solicitor prepares the vendor statement. It is the seller’s legal obligation to provide an accurate and complete statement before signing.

What happens if the vendor statement is incomplete?

An incomplete or inaccurate vendor statement can give the buyer grounds to rescind the contract before settlement. Seek independent legal advice if you suspect this is the case.

Want a Collings Property Advisor to review your vendor statement? Fixed fee $4,500 + GST covers the full buyer advisory service including contract and vendor statement review. Start at collings.com.au/portal