Understanding contracts of sale and vendor statements.

Selling a home in Australia means signing legal paperwork before a single buyer walks through the door. The two documents that matter most are the contract of sale and the vendor’s statement (known in Victoria as a Section 32). Get them right and the campaign runs cleanly. Get them wrong and the sale can fall over at exchange, or worse, after settlement.

01 · The basics

The two documents, in one minute.

Vendor’s statement — the disclosure document. Prepared by your conveyancer or solicitor before the property goes to market. It tells buyers what they’re buying: title, encumbrances, planning, rates, owners corporation information, building permits, and any known defects required to be disclosed.

Contract of sale — the agreement itself. It sets out the price, deposit, settlement date, special conditions, inclusions and exclusions, and which party carries which risk between sale and settlement.

In most states they’re a single bundle the buyer signs at once. In Victoria they’re legally distinct but presented together. Buyers and their conveyancers read both before they make an offer.

Have a qualified conveyancer draft your paperwork — but read it end-to-end before it goes live. Buyers and their advisors read every line. So should you.

02 · State by state

Vendor statements: how they vary across Australia.

Victoria — the Section 32

Named after Section 32 of the Sale of Land Act 1962 (Vic). It must be provided to a purchaser before they sign the contract. A complete Section 32 includes:

• Title particulars and a copy of the certificate of title
• All registered encumbrances, easements and covenants
• Mortgages to be discharged at settlement
• Outgoings — council rates, water rates, owners corporation fees, land tax (if applicable to the buyer)
• Planning information, including the zone and any planning overlays
• Building permits issued in the last seven years
• Owners corporation certificate and rules (for strata-titled property)
• Services connected to the property (electricity, gas, water, sewerage, telephone)
• Notices, orders or proposals from any authority affecting the property
• Disclosure of any growth area infrastructure contribution

A material omission or a knowingly false statement gives the buyer a right to rescind — in some cases right up until settlement. This is why a thorough Section 32, prepared by a competent conveyancer, is non-negotiable.

Other states at a glance

NSW — Vendors must attach prescribed documents to the contract before marketing under the Conveyancing (Sale of Land) Regulation 2022, including a title search, deposited plan, zoning certificate (s10.7) and drainage diagram. Missing prescribed documents can give the buyer a rescission right.

QLD — No Section 32-equivalent regime in the same form, but contracts use REIQ or equivalent terms and a Form 1 Disclosure Statement is required for community titles schemes. Pool safety, smoke alarm and pest disclosure obligations apply.

SA — Vendors must serve a Form 1 (Vendor’s Statement) before settlement, disclosing similar categories to Victoria. The cooling-off period runs from service of the Form 1, not signing.

WA — Disclosure is more limited at the contract stage. The Joint Form of General Conditions does the heavy lifting, with strata disclosure under the Strata Titles Act for applicable properties.

03 · The contract

What’s actually in the contract of sale.

Every state uses a slightly different standard form, but the core ingredients are the same.

Parties and property

Vendor’s full legal name (matching title), purchaser’s name, and the property described by title reference and street address. A mismatch between title and contract is the single most common cause of last-minute solicitor back-and-forth.

Price, deposit and settlement

Price — the agreed sale price.

Deposit — typically 10% in Australia, held by the agent or solicitor in a trust account. Some buyers negotiate a 5% deposit on premium properties.

Settlement period — 30, 60 or 90 days is standard. Longer settlements give buyers time to organise finance and arrange the move; shorter settlements give vendors faster certainty.

Inclusions and exclusions

This is where deals turn sour after exchange. The dishwasher you assumed you were taking. The wall-mounted TV brackets. The garden sculpture. Anything fixed to the property is presumed included unless specifically excluded. List anything you’re taking with you, and anything you’re including beyond the obvious (e.g. a pool robot, the rangehood you upgraded last year).

Special conditions

Anything outside the standard form sits here. Common examples:

• Subject to finance
• Subject to building and pest inspection
• Subject to the sale of the buyer’s existing property
• Vendor leaseback or extended occupation after settlement
• Specific repairs to be completed before settlement

Each special condition is a potential exit ramp for the buyer. The fewer, the cleaner. The cleaner the contract, the better your negotiating position when multiple offers land.

Cooling-off

Cooling-off periods exist in most states for private treaty sales and don’t apply to properties sold at auction (or to certain buyer categories):

• Victoria — 3 business days
• NSW — 5 business days
• Queensland — 5 business days
• South Australia — 2 business days from service of Form 1
• Western Australia — no statutory cooling-off period for residential sales

A buyer who pulls out during cooling-off typically forfeits a small percentage of the price (0.2% in Victoria, 0.25% in NSW) — not the full deposit.

04 · The mistakes

The five most common vendor mistakes.

1. Disclosing too little

Buyers who discover something material post-contract have rescission rights in most states. Over-disclose, always.

2. Letting the document drift outdated

If the Section 32 was prepared six months before listing and a new owners corporation special levy has been struck, the document needs updating before it’s served on a buyer.

3. Vague inclusions lists

“All fixtures and fittings” is not a list. Itemise.

4. Accepting weak special conditions

A 90-day finance clause with no penalty effectively gives the buyer a free option. Tighten timeframes; require evidence of genuine effort.

5. Signing without reading

The contract is your contract. You’re allowed to ask your conveyancer to explain every clause. They expect you to.

05 · The preparation

How to prepare your documents efficiently.

Order of operations for a clean campaign:

1. Choose a conveyancer or solicitor before you list. Get a fixed-fee quote; conveyancing is a commodity service and pricing should be transparent.
2. Order the searches early. Title search, planning certificate, owners corporation certificate and rates can take 10–15 business days to come back.
3. Write the inclusions/exclusions list yourself. Your conveyancer can’t see what’s in your house.
4. Have the documents ready before the first open. Buyers who request the contract on Saturday and don’t see it until the following Wednesday have moved on.
5. Review the final draft. Cross-check the title name, the inclusions, and any special conditions. Sign only when it reflects reality.

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A short glossary

The terms worth knowing.

Encumbrance — a third-party right over the property (e.g. a mortgage, easement, covenant).

Easement — the right of a third party to use part of your land for a specific purpose (e.g. a drainage easement).

Covenant — a restriction on what can be done with the land (e.g. a single-dwelling covenant).

Exchange — the moment the contract is signed by both parties and becomes binding.

Settlement — the date money and title change hands. The buyer pays the balance, the vendor’s mortgage is discharged, and title is transferred.

Trust account — a regulated account, separate from a business’s operating funds, used to hold deposits and client money.

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This guide is general information, not legal advice. Always have your contract and vendor statement reviewed by a qualified conveyancer or solicitor in your state.