Vendor Statement Checklist for Buyers: 23 Things to Check Before You Sign

You have a vendor statement in front of you. Maybe it arrived as a thick PDF from the agent, maybe your conveyancer forwarded it, or maybe you picked it up at an open inspection. Either way, you are now holding the single most important pre-purchase document in a Victorian property transaction.

The vendor statement (also called a Section 32) is the vendor's legal disclosure about the property. It covers everything from who actually owns the land, to what is buried underneath it, to how much the council charges each year. If something is wrong, missing, or misleading in this document, you may have grounds to pull out of the contract. If something is accurate but alarming, you need to know before you sign.

The problem is that vendor statements are dense. They mix legal certificates, planning maps, title searches, and council information into a single package that can run well over 50 pages. Important details hide between routine disclosures.

This checklist gives you a structured way to work through the document item by item. Print it, open it alongside your vendor statement, and tick each item off as you go. If anything raises a concern, flag it for your conveyancer or solicitor before you commit.

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Title and Ownership

The title is the foundation. If the ownership details are wrong or there are unexpected interests registered against the property, everything else is secondary.

1. Vendor names match the title

Confirm that the names on the contract match exactly with the names shown on the certificate of title. Discrepancies between the vendor's name on the contract and the registered proprietor on title can create serious settlement problems. Look for differences in spelling, middle names, or situations where a property is held in a trust or company name but the contract names an individual. If the names do not align, ask why before proceeding.

2. Correct property address and lot/plan number

Verify the property address, lot number, and plan number against the certificate of title. The street address alone is not a legal identifier. The lot and plan number is what defines the actual parcel of land you are buying. A wrong lot number could technically mean you are signing a contract for a different piece of land. Cross-check these details with the title search included in the vendor statement.

3. No caveats on title

Check whether any caveats are registered on the certificate of title. A caveat is a formal notice that someone other than the owner claims an interest in the property. This could be a builder owed money, a former partner asserting a property settlement claim, or a beneficiary under a trust. If a caveat exists, find out what it relates to and whether it will be removed before settlement. Unresolved caveats can prevent the transfer of ownership.

4. Mortgages listed

Identify all mortgages registered on the title and confirm the vendor will discharge them at or before settlement. Most properties have a mortgage. That is normal. What matters is that the vendor's bank releases the mortgage at settlement so you receive a clean title. If there are multiple mortgages, or if the mortgage is held by a private lender, ask your conveyancer to confirm the discharge arrangements are in order.

5. Any restrictive covenants

Read any restrictive covenants registered on the title to understand what you can and cannot do with the property. Covenants are binding rules attached to the land, often by the original developer. They might restrict the materials you can build with, prevent subdivision, prohibit certain business activities, or require minimum setbacks beyond what council requires. Covenants run with the land permanently in most cases, so you inherit them regardless of when they were created.

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Planning and Zoning

Planning controls dictate what the property can be used for now and what might change in the future. These items directly affect the property's value and your plans for it.

6. Current zoning

Check the zoning of the property and confirm it allows your intended use. The vendor statement should include a planning certificate that identifies the zone. Residential zones vary, some allow only single dwellings while others permit medium-density development. If you plan to run a home business, build a granny flat, or subdivide, the zoning is the first thing that determines whether it is possible. Do not assume a property zoned General Residential allows everything residential.

7. Planning overlays

Review all planning overlays listed on the planning certificate, especially heritage, flood, bushfire, and environmental overlays. Overlays add extra planning requirements on top of the base zone. A Heritage Overlay means external changes may need a planning permit. A Land Subject to Inundation Overlay means the property has known flood risk. A Bushfire Management Overlay triggers mandatory construction standards and may require a bushfire management plan. Environmental overlays can restrict clearing of vegetation. Each overlay adds cost, complexity, or risk to your ownership.

8. Any planning permits issued

Check whether any planning permits have been issued for the property and whether they are still current. A permit might have been granted for a development that was never completed, or conditions might remain outstanding. Current permits can be valuable if they align with your plans, but expired or breached permits can create compliance issues. Look for any conditions attached to permits that have ongoing obligations.

9. Proposed future planning changes

Ask whether the vendor is aware of any proposed planning scheme amendments that could affect the property. Planning schemes change. A quiet residential street could be rezoned for higher density. A neighbouring property could be subject to an application that would change the character of the area. While the vendor statement may not always disclose proposed amendments, checking the council's website or asking your conveyancer to run a search can reveal upcoming changes that affect value or liveability.

10. Growth areas infrastructure contribution

Determine whether a Growth Areas Infrastructure Contribution (GAIC) applies to the property. If the property is in a designated growth area, a GAIC may be triggered when the land is subdivided or developed. This can amount to tens of thousands of dollars. If GAIC applies, the vendor statement must disclose it. Confirm who is liable for any outstanding or future GAIC obligations and ensure the contract addresses this clearly.

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Building and Compliance

Building compliance is where many buyers get caught out. Unpermitted works become your problem the moment settlement occurs.

11. Building permits in last 7 years

Check whether any building permits have been issued for the property in the past seven years. The vendor must disclose building permits from this period. Look at what the permits were for, whether that matches what you see on the property, and whether the scope of the work aligns with your expectations. A renovation that appears professional may not have had a permit, or a permit may cover work you were not aware of.

12. Final inspection certificates for permits

Confirm that every building permit disclosed in the vendor statement has a corresponding final inspection certificate or certificate of occupancy. A building permit without a final inspection means the work was never officially signed off as compliant. This could mean the work does not meet building standards, and the council or building surveyor could require rectification at your expense. If a final certificate is missing, ask the vendor to obtain one before settlement or factor the risk into your offer.

13. Owner-builder works and warranty insurance

Check whether any work was done under an owner-builder permit and whether the required warranty insurance is in place. In Victoria, if the vendor performed building work as an owner-builder valued over the prescribed amount within the last six years, they must provide domestic building insurance that covers you as the new owner. If this insurance is missing, you have limited recourse if defects appear after settlement. This is a common issue and a frequent source of disputes.

14. Swimming pool or spa registration and compliance

Verify whether any swimming pool or spa on the property is registered and has a current compliance certificate. All pools and spas in Victoria must be registered with the local council and have a barrier compliance certificate that is no more than four years old. Non-compliance is not just a safety issue, it is a legal one. If the pool or spa is not registered or the barrier does not comply, you may need to pay for upgrades or face council enforcement action after settlement.

15. Essential safety measures

Check whether the property has any essential safety measures that require annual certification. This is more common with commercial properties, multi-unit developments, and apartments, but it can apply to residential properties with fire safety systems, emergency lighting, or mechanical ventilation. If essential safety measures exist, there is an ongoing obligation to maintain and certify them. Confirm the current status and factor the maintenance cost into your ownership expenses.

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Financial

The financial disclosures in the vendor statement tell you the ongoing cost of owning the property. These are the recurring expenses that affect your budget from day one.

16. Council rates

Check the current annual council rate amount disclosed in the vendor statement. Council rates vary significantly between municipalities and between properties within the same municipality. The amount disclosed gives you a baseline for your annual holding costs. Be aware that rates are adjusted each year, and if the property has been recently rezoned or revalued, rates may increase substantially. Use the disclosed figure as a minimum estimate, not a ceiling.

17. Water rates

Confirm the current water rates and any outstanding water charges. Water rates typically include a fixed service charge plus usage charges. The vendor statement should disclose the current amount. If the property has a large garden, pool, or irrigation system, water costs may be higher than average. Check whether there are any outstanding amounts that need to be apportioned at settlement.

18. Land tax status

Determine whether land tax applies to the property and check for any outstanding land tax liabilities. If the vendor owns multiple properties, they may be liable for land tax, and outstanding amounts could affect settlement. For you as a buyer, land tax generally does not apply to your principal place of residence. However, if you are buying an investment property, you need to factor land tax into your annual costs. The vendor statement should disclose any current land tax obligations.

19. Body corporate fees and special levies

If the property is part of an owners corporation (body corporate), review the fees, any special levies, and the financial statements. The vendor statement must include an owners corporation certificate that discloses the current fees, any outstanding arrears, planned special levies, and the balance of the maintenance fund. High fees, a depleted maintenance fund, or a looming special levy for major works like re-roofing or lift replacement can significantly affect your total cost of ownership. Review the minutes of recent meetings for upcoming expenditure discussions.

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Services and Access

These items cover the practical aspects of living on or developing the property. Access issues and service limitations can be deal-breakers that are easy to overlook.

20. Connected services

Confirm which services are connected to the property, including water, gas, electricity, and sewer. Not all properties have all services. Rural and semi-rural properties may rely on tank water, septic systems, or bottled gas. If a property is not connected to reticulated sewer, the cost to connect, or the ongoing cost to maintain a septic system, can be significant. Confirm the status of each utility and factor any connection costs into your budget.

21. Easements and their impact

Identify all easements shown on the title and understand what they mean for your use of the property. An easement gives someone else the right to use part of your land for a specific purpose. Common easements include drainage easements for stormwater pipes, sewerage easements for sewer mains, and carriageway easements for shared access. You generally cannot build over an easement, and the authority or neighbour holding the easement has the right to access it for maintenance. Check the location and width of each easement against the property plan.

22. Road access

Confirm that the property has legal access from a public road. Most suburban properties front a public road, and this is straightforward. But some properties, particularly rural land, battle-axe blocks, or lots in older subdivisions, may rely on a right-of-way, private road, or carriageway easement for access. If the property does not directly front a government road, confirm the legal basis for access, who is responsible for maintaining the access road, and whether there are any disputes with neighbouring owners.

23. Any notices or orders from authorities

Check whether any notices or orders have been issued by council, a water authority, or any other government body. Notices could include requirements to repair a fence, address drainage issues, connect to sewer, remediate contamination, or comply with fire safety requirements. Outstanding orders become the buyer's responsibility after settlement. If notices or orders exist, understand the scope, cost, and timeline for compliance before committing to the purchase.

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What to Do If Something Is Missing

A vendor statement must be substantially compliant with the requirements of Section 32 of the Sale of Land Act 1962 (Vic). If key information is missing or the statement is defective, you have options.

Before signing the contract: If you notice gaps in the vendor statement before you sign, raise them with the vendor's agent or your conveyancer. Request the missing documents or disclosures. Common omissions include missing owners corporation certificates, absent planning certificates, or building permits without final inspection certificates. Do not proceed until you are satisfied the vendor statement is complete.

After signing but before settlement: If you discover a material defect in the vendor statement after signing the contract, you may have the right to rescind (cancel) the contract under Section 32. This right exists because the vendor has a legal obligation to make proper disclosure. However, the defect must be material, meaning it is significant enough that it would have affected your decision to buy. Seek legal advice promptly if you believe the vendor statement is deficient.

Common missing items to watch for:

• Owners corporation certificate (mandatory for any property with a body corporate)
• Planning certificate or zoning information
• Building permit documents and inspection certificates
• Title search that is more than 30 days old
• Disclosure of any notices or orders
• Warranty insurance for owner-builder works

If your conveyancer or solicitor identifies a deficiency, they can send a formal notice to the vendor requesting rectification. The strength of your position depends on the nature and materiality of what is missing.

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Key Takeaways

• Work through the vendor statement systematically. It is designed to disclose everything material about the property, but the information is scattered across multiple attachments and certificates. A checklist approach ensures nothing is missed.

• Title issues are the most critical. Problems with ownership, caveats, or unregistered interests can derail a purchase entirely. Start here.

• Planning overlays add cost and restriction. Heritage, flood, and bushfire overlays are not just abstract categories. They have real financial and practical consequences for renovations, insurance, and daily living.

• Missing building compliance is your problem after settlement. Unpermitted works, absent final inspections, and missing owner-builder insurance all become the buyer's responsibility once the property transfers.

• Financial disclosures set your ongoing budget. Rates, water, land tax, and body corporate fees are not one-off costs. They recur every year and tend to increase.

• Easements and access matter more than people think. An easement in the wrong location can prevent an extension. Lack of legal road access can affect insurability and resale.

• A defective vendor statement gives you rights. If something material is missing, you may be able to rescind the contract. But you need to act quickly and get legal advice.

Do not treat the vendor statement as a formality. It is the vendor's disclosure to you, and everything in it, or missing from it, has consequences for your purchase.