Vendor Disclosure Obligations in Australia: What Sellers Must Tell Buyers

When you buy property in Australia, you are relying heavily on the vendor (seller) to disclose material information about the property. Every state and territory has laws requiring vendors to reveal certain facts — from title defects and zoning restrictions to contamination and building work history. If a vendor fails to disclose something they were legally required to, you may have grounds to rescind the contract or seek compensation.

Understanding what vendors must disclose, how requirements differ across states, and how to verify those disclosures independently is one of the most important steps in protecting yourself as a buyer.

Why Vendor Disclosure Matters

Property transactions involve a significant information asymmetry. The vendor has lived with (or owned) the property and typically knows far more about its condition, history, and any issues than the buyer. Disclosure laws exist to level this playing field. Without them, buyers could unknowingly purchase properties with hidden defects, legal disputes, contamination, or planning restrictions that drastically affect the property's value and usability.

Disclosure obligations are not just about honesty — they are legally enforceable requirements. Vendors who fail to comply can face contract rescission, damages claims, and in some cases penalties from consumer protection authorities.

State-by-State Disclosure Requirements

Each Australian state and territory has its own framework for vendor disclosure. While the underlying principle is the same — the vendor must provide material information to the buyer before exchange — the specific requirements and documents vary significantly.

Victoria has the most comprehensive vendor disclosure regime through the Section 32 Vendor Statement, which covers title details, encumbrances, planning information, building permits, owner-builder work, outgoings, insurance, services, and notices or orders. If the Section 32 is incomplete or inaccurate, the buyer may have the right to rescind before settlement. NSW requires prescribed documents to be attached to the contract but does not use a single disclosure form. The ACT is notable for requiring building and pest reports to be attached to the contract in most residential sales.

Common Disclosure Items Across All States

While the specific forms and requirements differ, there are common categories of information that vendors must typically disclose across all Australian jurisdictions:

• Title defects: Encumbrances, easements, covenants, caveats, and any restrictions on the title that affect the buyer's use or enjoyment of the property
• Zoning and planning: The property's zoning classification, any overlays (heritage, flood, bushfire), and any planning permits or applications
• Contamination: Known contamination of the land or inclusion on a contaminated land register
• Building work: Details of any building work done, permits obtained (or not obtained), and owner-builder work
• Disputes and orders: Any ongoing disputes, tribunal orders, or notices from authorities affecting the property
• Heritage listings: Whether the property is listed on a local, state, or national heritage register, which can restrict what you can do with it
• Defects: Known material defects that would affect the property's value or the buyer's decision to purchase
• Outgoings: Council rates, water rates, strata levies, and any other regular charges

What Happens If the Vendor Fails to Disclose?

The consequences of non-disclosure depend on the state, the nature of the information withheld, and when the failure is discovered:

• Right to rescind: In many states, if the vendor's disclosure statement is incomplete or inaccurate, the buyer can rescind the contract before settlement. In Victoria, for example, a defective Section 32 gives the buyer a right to rescind up until settlement.
• Damages: If the buyer has already settled and later discovers the vendor failed to disclose material information, they may be able to sue for damages — the difference between what they paid and what the property would have been worth had the defect been known.
• Misleading and deceptive conduct: Under the Australian Consumer Law, a vendor (or their agent) who makes false or misleading representations about a property can face claims for misleading and deceptive conduct. This applies even to silence — failing to disclose a material fact can constitute misleading conduct in certain circumstances.
• Penalties for agents: Real estate agents have their own statutory obligations to disclose material facts. Agents who knowingly conceal information can face disciplinary action and fines from their state's fair trading body.

How to Verify Disclosures Independently

Never rely solely on the vendor's disclosures. Always conduct your own independent checks to verify the information provided and uncover anything the vendor may have missed or failed to disclose:

You can also use Realestate Lens AI Contract Analysis to quickly identify gaps in vendor disclosures and flag potential red flags.

Red Flags in Vendor Disclosures

When reviewing the vendor's disclosure documents, watch for these warning signs:

• Vague or incomplete answers to disclosure questions
• Unapproved building work (renovations done without council permits)
• Recent changes to easements or covenants
• Outstanding notices or orders from local council or state authorities
• Properties listed on a contaminated land register
• Heritage overlays that restrict renovation or demolition
• Discrepancies between the disclosure documents and what you observe at the property

For a comprehensive list of contract warning signs, see our guide to red flags in property contracts.

Related Resources

• Understanding the Section 32 Vendor Statement — Victoria's comprehensive disclosure document explained
• How to Read a Property Contract — Understand every section of your contract
• Property Contract Red Flags — Warning signs to watch for before signing
• AI Contract Analysis — Get your contract reviewed in 60 seconds

This article provides general information only and does not constitute legal advice. Disclosure requirements vary by state and territory. Always consult a qualified conveyancer or solicitor for advice specific to your situation and jurisdiction.