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
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.
This article was originally published on
10 Jul 2019 at 2:13pm
but has been regularly updated to keep the information current.