What is a Vendor Statement?
A Vendor Statement is a disclosure document provided by a seller to a buyer before a contract of sale is entered into.
In some states, the Vendor Statement is also called a “Section 32 Statement”.
Information to be provided in the Vendor Statement includes:
- Details of legal title, including a copy of the title search
- Details of all adverse interests, including mortgages, caveats and charges
- Details of any covenants or easements over the property
- Zoning information
- Council information, including rates and other taxes
- Outstanding land tax
- Planning and building permits
The Vendor Statement allows buyers to confidently enter in a contract of sale in the knowledge that there aren’t currently any adverse interests registered against the property or that the land is not zoned for its purpose, for example.
If a Vendor Statement is incorrect, or incomplete, it will give the buyer the right to terminate the contract of sale.
A Vendor Statement is therefore an important document in the conveyancing process and in order to avoid errors it is recommended that you engage a solicitor to prepare the document on your behalf.