vendor statement

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.