Section 32 Vendor Statement Australia: What Investors Should Read Before Making An Offer

Before you sign anything on an Australian property, the vendor is legally required to hand you a disclosure document. In Victoria it's called a Section 32, and equivalent documents exist under different names in every other state and territory. It's dense, full of legal language, and easy to skim past when you're excited about a deal.

For investors, this document is often more valuable than the glossy listing photos. It tells you what's actually attached to the property in terms of debt, restrictions, and risk. Reading it properly, or paying a conveyancer to do it for you, can save you from a very expensive mistake.

What A Vendor Statement Actually Is

A vendor statement is a legal disclosure the seller must provide before you sign a contract of sale. It sets out the legal and financial status of the property, separate from the marketing spin used to sell it.

The exact name and content requirements vary by state. Victoria uses Section 32 under the Sale of Land Act, NSW uses a contract for sale with prescribed documents attached, and other states have their own versions. The principle is the same everywhere: the buyer should not be signing blind.

What's Typically Included

Every vendor statement should give you a clear picture of what you're buying and what comes with it. The details matter more for investors than for owner-occupiers, because they directly affect cashflow and resale value.

• Title details and any registered mortgages or caveats
• Zoning information and planning scheme restrictions
• Easements, covenants, or rights of way affecting the land
• Outstanding rates, land tax, and owners corporation fees
• Building permits and any unapproved structures
• Notices from councils or authorities affecting the property

Red Flags Investors Should Look For

Most vendor statements are routine, but some contain details that should change your offer price or your decision to proceed at all. A restrictive covenant limiting subdivision potential, for example, can kill a strategy built around future development.

Unapproved renovations are another common trap. If a previous owner added a room or a granny flat without council approval, you could inherit the cost of rectifying it, or find it affects your ability to insure or refinance the property.

• Covenants restricting building type, height, or subdivision
• Unregistered easements that could affect future works
• Outstanding owners corporation special levies
• Unapproved structures or building work without a permit
• Notices of intended resumption or compulsory acquisition

Why This Matters More For Wholesale And Off-Market Deals

Wholesale property deals often move faster than a typical retail sale, with less time for due diligence and sometimes less polished paperwork. That makes the vendor statement, and having a conveyancer check it properly, even more important rather than less.

A fast-moving deal is not a reason to skip disclosure checks. If anything, the pressure to move quickly is exactly when investors get caught out, because they assume someone else has already checked the details.

Working With A Conveyancer Or Solicitor

Most investors are not equipped to interpret legal disclosure documents on their own, and that's fine. A conveyancer or property solicitor can review the statement within a day or two and flag anything that needs further investigation before you commit.

Build this into your timeline from the start. If you're planning to make offers quickly, have a conveyancer on standby who understands investment property, not just standard owner-occupier purchases.

Final Word

A vendor statement won't tell you whether a property is a good investment, but it will tell you whether there's anything hiding underneath the numbers that could turn a good deal into a costly one.

Treat it as a standard part of your due diligence process, not an afterthought. Get professional advice from a conveyancer or solicitor before you sign, especially on deals that are moving fast.