A Checklist for Reviewing a Vendor Statement

A vendor statement, known as a Section 32 in Victoria and by different names in other states, is the seller's legal disclosure document about the property before you commit to buying it. It contains information the vendor is legally required to provide, and reading it carefully before you sign a contract gives you a chance to raise questions or negotiate before you are locked in. Requirements differ by state, but as an example, NSW Government guidance on selling a property sets out the mandatory documents a vendor must attach to the contract, including title, zoning and drainage information. This checklist covers the key sections to work through and what to look for in each.

Confirm the Title Details Match What You Expect

Check that the title reference, lot and plan details, and registered proprietor names in the vendor statement match what you have been told about the property and what appears in the sale listing. Look for any caveats, mortgages, or other registered interests on title, and confirm with your conveyancer whether these will be removed or discharged before or at settlement. It is also worth checking whether the property is held as a single title or whether it is affected by a plan of subdivision that could restrict how it can be used or further divided.

• Match the title reference and lot number to the property you are buying.
• Check for existing mortgages, caveats or other registered interests.
• Confirm any interests will be discharged before settlement.
• Note whether the property is affected by a subdivision plan or easement.

Review Zoning and Planning Information

The vendor statement should disclose the property's current zoning and any known planning overlays, restrictions, or proposals that could affect its use. This matters particularly if you have specific plans for the property, such as a renovation, subdivision, or change of use, since a restrictive overlay could limit what you are able to do. If anything is unclear, your conveyancer can request further information from the relevant council as part of standard pre-purchase searches.

Check for Easements, Covenants and Encumbrances

Easements grant other parties, such as utility providers or neighbouring landowners, specific rights over part of the property, while covenants can restrict what you are able to build or how the land can be used. These are not necessarily deal-breakers, but you should understand exactly what they mean for the property before proceeding, particularly if an easement runs through an area you had planned to build on or use for a specific purpose. Ask your conveyancer to explain any easement or covenant listed in plain terms rather than accepting the legal description at face value.

Review Rates, Charges and Outgoings

The vendor statement discloses current council rates, water charges, and owners corporation or strata fees if applicable, along with any known outstanding amounts. Check whether these figures seem reasonable compared to similar properties in the area, and confirm with your conveyancer how these will be adjusted between vendor and purchaser at settlement, so you are not caught out by a larger than expected settlement adjustment. If the property has an owners corporation, request the most recent minutes and financial statements as well, since the statement itself often only summarises this information.

Check for Notices, Orders and Building Approvals

Look for any disclosed notices or orders from council, such as building orders, demolition notices, or heritage listings, and confirm that any structures on the property, including extensions, decks, sheds or pools, have the relevant building approvals. Unapproved building work can create complications when you later come to sell or renovate, and in some cases can affect your insurance or ability to obtain finance. If something looks incomplete or unclear, this is worth raising with your conveyancer before you sign rather than after.

Look at Insurance and Risk Details

The vendor statement should confirm details about the risk transferring to you, including from what date you become responsible for insuring the property, which is generally from the date of contract in most states rather than settlement. Confirm this timing with your conveyancer and arrange building insurance to start from the correct date, since a gap in cover between contract and settlement leaves you exposed if something happens to the property in the meantime.

Compare the Statement Against Your Own Observations

Wherever possible, cross-check what the vendor statement says against what you observed during property inspections, since a document can only disclose what the vendor is aware of or required to state, not everything you might notice walking through the property yourself. If something you saw in person, such as a water stain, a recent repair, or an unusual modification, is not mentioned anywhere in the statement, it is worth asking your conveyancer to raise a specific question with the vendor's representative before you proceed. This kind of cross-referencing often catches gaps that neither the standard disclosure nor a quick inspection would reveal on their own.

Ask Questions Before You Sign, Not After

Once you sign the contract, your ability to negotiate based on something in the vendor statement becomes far more limited, and in some states a cooling-off period is your main remaining option if something significant comes to light. Read the document properly, or better, have your conveyancer review it before you sign anything, so any concerns are raised and addressed as part of the negotiation rather than discovered afterwards. A residential purchase is one of the largest transactions most people make, and a careful read of the vendor statement is one of the simplest ways to reduce your risk going in. Keep a copy of the statement together with your contract and any inspection reports once the purchase settles, since it can be a useful reference if questions about the property's condition or history come up later.