A home can look right at the inspection and still come with conditions that affect what you can do with it. If you have searched what is vendor statement, you are likely preparing to buy property in Victoria and want to know what sits behind the sale contract. This document matters because it gives buyers key legal and practical information before they commit.
In Victoria, a vendor statement is commonly called a Section 32. It is not paperwork to skim while you focus on the price. It can reveal restrictions on the land, planning controls, service connections and financial obligations that may influence the value, use and future costs of a property.
A vendor statement is a legal disclosure document prepared by the seller, known as the vendor. Under Victoria’s Sale of Land Act, the vendor must provide it to a prospective buyer before the buyer signs a contract of sale.
Its purpose is straightforward: buyers should have access to specified information about the property before making a binding decision. The statement is usually prepared by the vendor’s conveyancer or solicitor and supplied with the contract of sale by the selling agent.
A Section 32 is different from the contract itself. The contract sets out the agreed price, settlement date, deposit, special conditions and other terms of the transaction. The vendor statement discloses prescribed information about the land and its circumstances. Both documents should be read together.
For buyers in Melbourne’s northern growth corridor, this distinction is particularly useful. Newer estates in Craigieburn, Wollert, Kalkallo, Mickleham and Epping can have estate-specific covenants, easements, owners corporation arrangements or planning considerations. None is automatically a problem, but each deserves proper attention before you offer or bid.
The exact contents depend on the property, but a compliant vendor statement generally includes information in several important areas.
The statement includes a copy of the title and details of registered interests affecting the land. These can include mortgages, covenants, easements and caveats.
An easement may give a service authority or another party rights over part of the property, often for drainage, sewerage or power infrastructure. A covenant can restrict how the land is used or what may be built, such as limits on fencing, building materials or further subdivision. These conditions are common in newer developments and should be considered alongside your future plans for the home.
Buyers are usually given details of council rates, water charges and other applicable outgoings. The statement may also address land tax and, where relevant, owners corporation fees.
These figures help you understand the ongoing cost of ownership. They are not just administrative details. A property with an owners corporation, for example, may involve regular levies and rules for common areas, insurance or alterations.
The vendor statement commonly provides planning information, including the zoning of the land and whether it is affected by an overlay. It may also include building permits issued in the preceding seven years and notices or orders from government authorities where required.
Planning controls can influence whether you can extend, build a second dwelling, operate a business from home or subdivide in the future. They can also give context for the land around the property. However, a planning certificate does not guarantee that neighbouring land will remain unchanged. If future development is central to your decision, further enquiries with the relevant council and qualified advisers may be worthwhile.
A Section 32 can disclose whether the property is connected to essential services such as electricity, gas, water and sewerage. It may also deal with road access where relevant.
For established suburban homes, this can be relatively simple. For acreage, vacant land or properties on the edge of growing suburbs, service availability and access arrangements can have greater practical and financial significance. Buyers considering a land purchase should be especially clear about what is connected now, what is planned, and what costs may sit with the owner.
If the property is part of an owners corporation, such as an apartment, townhouse complex or some master-planned communities, the vendor statement should include relevant owners corporation information.
This may cover fees, liabilities, insurance and notices. It is sensible to look beyond the annual levy. Ask whether major works are planned, whether there are active disputes or whether rules may affect pets, renovations, parking or leasing arrangements.
The vendor statement gives buyers an opportunity to identify matters that may change their view of a property. For example, a buyer may learn that an attractive corner block is subject to a covenant that limits subdivision. Another may find an easement in the area they planned to use for a pool or extension.
It can also support a more informed conversation about price. A restriction or future cost does not necessarily mean you should walk away. It may simply need to be factored into your offer, your renovation plans or your investment calculations.
At auction, preparation is even more important. If you are the successful bidder, you generally enter into a binding contract immediately and do not receive a cooling-off period. Request the contract and vendor statement early, rather than waiting until auction day, and have them reviewed before you bid.
A vendor statement is valuable, but it is not a complete due diligence report. It does not replace a building and pest inspection, finance approval, independent valuation or specialist advice on a planned renovation or development.
It may not reveal every physical defect in the dwelling. A building inspector can assess visible issues such as cracking, moisture, roof condition and structural concerns. A pest inspection can identify evidence of timber pests. For an investment property, reviewing the tenancy arrangement, rental return, maintenance history and likely holding costs is also a separate exercise.
Buyers should also understand that zoning information is not the same as development approval. A property may sit in a zone that appears favourable, yet your intended project could still require permits, reports, neighbour consultation or compliance with overlays and local policies.
The seller is responsible for providing the vendor statement, although their conveyancer or solicitor usually prepares it. The selling agent can make the documents available to interested buyers and explain the sales process, but agents do not provide legal advice.
If information is missing, inaccurate or misleading, a buyer may have rights under the law, including a possible right to rescind in certain circumstances. The outcome depends on the nature of the issue, when it is discovered and the specific facts of the transaction. That is why independent legal review before signing is a sensible safeguard rather than an optional extra.
For vendors, accurate preparation is equally important. Gathering rates notices, title information, owners corporation records, planning documents and permits early can reduce delays once the property goes to market. A clear, properly prepared Section 32 also gives serious buyers greater confidence to move forward.
Once you receive the documents, focus on how the disclosures relate to your plans. Are there covenants or easements that affect an extension, a shed, a pool or subdivision? Is there an owners corporation, and what are the fees and rules? Are recent building permits disclosed? Do planning controls align with how you want to use the property?
For vacant land or newer estates, ask about services, drainage, fencing requirements and any design guidelines. For an investment purchase, clarify whether the current lease, rental amount and property condition support the return you expect. A strong decision comes from combining the vendor statement with inspections, finance checks and local market evidence.
A well-priced property can still be the wrong fit if its legal restrictions work against your goals. Take the time to have the vendor statement reviewed before you sign or bid, then make your next move with the confidence that comes from knowing exactly what you are buying.
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