Vendor Statements and Contracts Explained (Australia)

A vendor statement is the seller's legal disclosure about a property: the title, any easements, council notices, and body corporate details for units. It goes by different names in each state (Section 32 in Victoria, Form 1 in South Australia, Form 2 in Queensland), but it does the same job. What's inside can change your decision or your price, so your conveyancer reviews it closely before you sign.

Quick definitions

• Vendor statement: the seller's legal disclosure document about the property.
• Title: the official record of who owns the land and what's registered against it.
• Easement: a right for someone else (often the council) to use part of your land, like a drain or shared driveway.
• Encumbrance: a claim or restriction on the property, such as a mortgage or a caveat.
• Special levy: a one-off charge unit owners must pay for big repairs, on top of regular strata fees.
• Body corporate (owners corporation): the group that runs a block of units and its shared areas.

What is a vendor statement?

It's a legal document the seller provides that discloses important facts about the property. Think of it as the seller's duty to tell you what they know, and especially what problems they know about.

What it's called in each state

• Victoria: Section 32 (Vendor's Statement)
• South Australia: Form 1 (Vendor's Statement)
• Queensland: Form 2 (Seller Disclosure Statement), mandatory since 1 August 2025
• NSW: no standalone statement; disclosure is through documents attached to the Contract for Sale
• WA, ACT, NT, TAS: seller disclosure through the contract, with rules that vary

They all serve the same purpose: telling you what you're buying before you commit.

Why it matters

A vendor statement reveals things a building inspection and the photos won't:

• Planned maintenance or renovations
• Special levies on apartments
• Building or plumbing issues the seller knows about
• Council notices or orders
• Building work done without permits
• Flooding or water-damage history

What's inside a vendor statement?

A complete statement usually covers:

• Title information: whether the title is clear, plus any easements, encumbrances, or mortgages
• Council and planning: outstanding notices, permits and approvals, zoning, and any enforcement action
• Body corporate (for units): the scheme details, fees, planned special levies, the maintenance plan, financial statements, and meeting minutes
• Seller disclosure: known defects, damage history (water, flood, fire, structural), and any unfinished building work
• Services: water, sewerage, and whether any services are shared

When should you get it?

Ideally before you make an offer, so your conveyancer can review it while you can still walk away for free and use what's in it to shape your price. That isn't always possible in a fast market.

Realistically, you'll get the contract and vendor statement soon after your offer is accepted. Queensland is now the exception: since 1 August 2025 the Form 2 must be given to you before you sign.

Rough timing by state:

• Queensland: before you sign (Form 2)
• Victoria: the Section 32 can be requested before you offer
• South Australia: the Form 1 must be provided by law, and it can set your cooling-off clock
• NSW and others: usually with the contract, within about a week

A long delay is a red flag. If the seller takes more than a week, it eats into your cooling-off period and can hint they're disorganised or hiding something.

What your conveyancer checks

Title search

Confirms the seller owns the property, there are no liens or claims, and the title can transfer to you cleanly. Watch for recent quick resales, mortgages that must be cleared at settlement, and unusual easements.

Council notices and orders

Checks for outstanding building or work orders, unpaid fines, unpermitted work, and zoning issues. For example, a notice about a fence built without a permit might mean it has to come down before you take ownership.

Body corporate (for units)

Reviews the scheme documents, the maintenance plan, the finances, and any planned special levies. If the body corporate has flagged, say, $50,000 for facade work, that hits your budget, so you want to know before settlement.

Seller disclosures

Reads what the seller has declared: defects, water or flood history, structural problems, and boundary matters. Vague answers or repeated past repairs are worth questioning.

Building and plumbing issues

Flags asbestos in older homes, subsidence or foundation movement, roof leaks, and damp. Your building inspector checks the physical side, while the vendor statement tells you what the seller already knows.

The big issues to look for

Building work without permits. An extension or second storey built without council approval can be ordered removed, can affect insurance, and hurts resale. If it's found, you can negotiate a price cut, ask the seller to get retrospective approval, or withdraw.

Special levies on apartments. If the body corporate has voted to spend, say, $100,000 on facade work, every owner pays a share. That's a real, soon cost, so factor it into your price and check you can afford it.

Subsidence or structural movement. Reactive clay soil or visible cracking can mean expensive repairs and can affect insurance and finance. The vendor statement tells you if the seller knows; your inspector confirms the physical picture.

Undisclosed repairs. Repeated fixes to the same thing suggest an underlying problem. Your conveyancer checks council and permit records against what was disclosed.

Water damage or flooding. Expensive to fix, linked to mould and health issues, and a sign of ongoing risk. Your conveyancer may suggest a pest inspection too, since damp often goes hand in hand with termite damage.

Red flags in a vendor statement

• Vague answers like "not aware" or "unable to provide" on important questions
• Repeated repairs to the same system
• Pending major works (roof, structural, facade): get quotes and negotiate before you proceed
• Unusual easements or restrictions that limit building or let others onto your land
• Unpermitted building work uncovered by your conveyancer's searches

For any of these, have your conveyancer explain it, and use it to negotiate a price cut, request repairs, or walk away.

State-by-state notes

New South Wales

No standalone vendor statement. Disclosure comes through documents attached to the Contract for Sale (title, a zoning certificate, a drainage diagram). Because there's no broad seller disclosure statement, your conveyancer's searches do the heavy lifting. For units, check the strata finances carefully.

Victoria

The Section 32 Vendor Statement can often be obtained before you offer. Review every disclosure, and for units be thorough on the body corporate.

Queensland

Since 1 August 2025, sellers must give you a Form 2 Seller Disclosure Statement and prescribed certificates before you sign. If it's missing, late, or inaccurate, you may be able to cancel the contract under the Property Law Act 2023. Review it and the body corporate documents closely.

Western Australia

Disclosure is through the contract, with relatively light regulation, so thorough checks matter. Body corporate regulation for units is limited too.

South Australia

The Form 1 Vendor Statement must be provided by law, and receiving it often starts your cooling-off clock. Check unit details carefully.

Australian Capital Territory

Disclosure comes with the contract under ACT-specific rules. Use a conveyancer who knows them.

Northern Territory

Disclosure through the contract, with limited regulation, so thorough checks are essential. Termite disclosure matters in the tropical climate.

Tasmania

Disclosure through the contract. With no statutory cooling-off period, a careful pre-offer review is essential, since there's no safety net after you sign.

After you receive it

1. Send it to your conveyancer straight away, along with the contract.
2. Have a proper review, ideally a call within a day or two, not just an email. Ask what the major issues are and what's worth negotiating.
3. Brief your building inspector on any disclosed issues so they can look closely.
4. For units, read the maintenance plan: what works are planned, when, at what cost, and whether they're funded.
5. Decide: proceed, negotiate, or use your cooling-off right.

Buying a unit? Focus on the body corporate

The vendor statement includes body corporate information, and it's where the costly surprises hide. Check:

• The finances: are fees reasonable, are there decent reserves, are there disputes? A body corporate with tiny reserves and no plan for future works is a red flag.
• The maintenance plan: major facade or roof work planned in the next few years with no special levy voted yet is a warning sign.
• Any special levy already voted: what's the total, when is it billed, and can it be paid in instalments?

Frequently asked questions

What is a vendor statement (Section 32)?

It's a legal document the seller must give you disclosing key facts about a property: the title, easements, council notices, and (for units) body corporate details. It's called a Section 32 in Victoria, a Form 1 in South Australia, and a Form 2 in Queensland. Your conveyancer reviews it before you sign.

Does Queensland now have a mandatory seller disclosure?

Yes. Since 1 August 2025, Queensland sellers must give buyers a Form 2 Seller Disclosure Statement and prescribed certificates before the buyer signs the contract. If it's missing, late, or inaccurate, the buyer can cancel the contract under the Property Law Act 2023.

Does NSW have a vendor statement like Victoria's?

Not a standalone one. NSW discloses through prescribed documents attached to the Contract for Sale, like the title, a zoning certificate, and a drainage diagram. NSW hasn't adopted a Queensland-style disclosure statement, so your conveyancer's searches matter even more.

Key takeaways

• A vendor statement is the seller's legal disclosure; read it before you sign
• Names differ by state: Section 32 (VIC), Form 1 (SA), Form 2 (QLD)
• Queensland now requires a Form 2 before you sign, since 1 August 2025
• NSW has no standalone statement, so searches do the work
• Special levies and unpermitted work are the costly surprises to catch
• Use anything disclosed to negotiate the price or repairs

Your conveyancer earns their fee right here. For more, see Consumer Affairs Victoria on the Section 32 and the Queensland Government seller disclosure scheme.

Next steps

When your offer is accepted, request the contract and vendor statement immediately, forward them to your conveyancer within a day, and talk through the findings before you sign. See our guides to choosing a conveyancer, the building and pest inspection, your cooling-off rights, and the complete first home buyer checklist.