Your Friendly Guide to Property Contract Reviewing – Before You Sign on the Dotted Line
It’s finally spring in Melbourne, a season that means two big things for Melbournians: it's the end of the season for AFL tragics and the start of the busiest time of year for the property market. Homes are looking their best, daylight hours are longer, and singles, couples and families are keen to make a move before the new year.
With so much activity, it’s easy to get swept up in the excitement. But when you’re making such a huge transaction, it’s important to get the fundamentals right. Every property sale relies on two key documents: the Contract of Sale and the Vendor’s Statement (often called a Section 32 Statement). With the right team making sure these documents are solid, your property journey is far more likely to be smooth and stress-free.
In this guide, we’ll cover:
What vendors (sellers) need to include in their contract and vendor’s statement.
Why buyers (purchasers) should have the documents legally reviewed before committing to purchase.
Part 1 – Property Contracts for Vendors
Understanding Your Obligations
When you’re selling in Victoria, you must provide a signed Vendor’s Statement before a Contract can be signed. This document discloses key information about the property as required under section 32 of the Sale of Land Act 1962 — which is why it’s often called a Section 32 Statement.
Only once this is complete can you enter into a Contract of Sale, the formal agreement with the buyer that sets out the price, settlement date, and the all-important terms and conditions.
Both documents need to be accurate, complete, and ready before your property hits the market.
Avoiding Common Vendor Pitfalls
Not making the required disclosures in the Vendor’s Statement, which can invalidate the sale.
Not fully understanding the terms of the Contract, including when it becomes unconditional and when the deposit can be released.
Agreeing to last-minute special conditions from the purchaser — such as early access — without realising how they may reduce the certainty of your sale.
Preparing the Vendor’s Statement
A poorly prepared Vendor’s Statement is one of the most common reasons property sales fall through. We review these documents every day and know how to spot risks and issues that could trip up a sale.
While many sellers choose conveyancing services based on price, the old adage ‘you get what you pay for,’ often rings true. Cutting corners in preparing a Vendor’s Statement can reduce buyer interest, give buyers leverage to negotiate a lower price, or even result in the sale being cancelled — leaving you out of pocket for wasted marketing and legal costs.
Your Vendor’s Statement needs to include (amongst other matters):
Title details and ownership
Mortgages, easements, covenants, or restrictions
Planning and zoning information
Outgoings such as council rates, land tax, and owners' corporation fees (if relevant)
Building permits and notices affecting the property
If any of this prescribed information is missing or incorrect, a buyer may be able to withdraw from the Contract right up until settlement. At McManus & Co, we prepare your Vendor’s Statement thoroughly so you can rely on your sale going through.
Drafting the Contract of Sale
The Contract of Sale sets out all the terms and conditions of the property sale, so it’s vital that every detail reflects the deal and protects your interests. At McManus & Co, we don’t just rely on standard clauses — we draft and tailor special conditions to suit your needs and circumstances. That might mean:
Setting out extra costs the purchaser will be liable for if they default.
Clearly including or excluding specific fixtures and fittings (for example, your grandmother’s chandelier).
Adding special conditions to reduce your exposure to risks, tailored to the property and your situation.
A well-drafted Contract of Sale provides certainty and helps prevent disputes once your property is on the market. As part of our property contract review, we’ll also guide you through the process so you know exactly what to expect.
How We Help Vendors at McManus & Co
We help vendors by:
Preparing your Contract of Sale and Vendor’s Statement in time for the property to hit the market.
Identifying risks and tailoring clauses to safeguard your interests.
Working with your real estate agent to ensure documents are ready and compliant before inspections begin.
Explaining the process in plain English so you feel supported every step of the way.
Part 2 – For Buyers (Purchasers)
Why Reviewing Before You Sign is Essential
Once you sign the Contract of Sale in Victoria, you’re legally bound — and cooling-off rights are limited. The old concept of ‘buyer beware’ still largely applies, meaning it’s the purchaser’s responsibility to do their due diligence, not the vendor’s responsibility to volunteer information.
That’s why every buyer should arrange a property contract review before signing. Having the Contract of Sale and Vendor’s Statement legally reviewed gives you the chance to identify risks, negotiate changes, or walk away if necessary — rather than being locked into a Contract that fails to protect your interests and could leave you buying a property that isn’t what you expected.
Avoiding Common Buyer Pitfalls
At McManus & Co, we’ve reviewed thousands of Contracts of Sale and Vendor’s Statements, and many clients thank us for spotting issues they missed. Some shocking but common problems we’ve identified include:
Land detailed in the Contract not matching the block marketed.
Large and expensive renovations done without building approval.
New house sold without an occupancy permit.
Significant building defects in the common property in an apartment block, with significant levies proposed to cover the costs of repair.
Off-the-plan properties marketed as “nearly finished”, but legally years from completion.
A thorough property contract review can uncover these risks before you’re locked in — saving you stress and money.
Reviewing the Vendor’s Statement
For buyers, the Vendor’s Statement is your window into the property’s ‘fine print.’ We carefully check disclosures to ensure there are no red flags and that all required information has been included.
Key issues to watch out for include:
Easements or covenants that could restrict extensions, renovations, or even how you use the land.
Heritage or planning overlays that may increase costs or delay building works.
Building works completed without permits, creating potential legal or safety issues.
VicRoads proposals to acquire nearby land for road projects.
Title boundary errors, where the land you’ve bought may not be the land you expect.
Any of these red flags can affect the value, use, or enjoyment of a property — and leave you regretting your purchase. A proper review ensures you know exactly what you’re buying.
Checking the Contract of Sale
Before signing, it’s essential to confirm that the Contract of Sale matches what you’ve agreed to. As part of our property contract review, McManus & Co carefully examines each condition, highlighting any clauses that expose you to unusual risk and recommending changes where needed.
Some key things buyers should look out for include:
The property description accurately matches the address and title.
Settlement period, deposit, and deadlines being realistic for your situation.
Inclusions and exclusions (appliances, window furnishings, water tanks, etc.) clearly listed.
Protective clauses (such as subject to finance, or subject to building and pest inspection) included to safeguard your interests.
A thorough review ensures the Contract reflects your agreement and gives you confidence before signing.
Why These Two Documents Matter
The Contract of Sale and the Vendor’s Statement form the foundation of every property transaction.
When these documents are accurate, complete, and tailored to your circumstances, the process is far more likely to be smooth and straightforward. But when they’re not, both buyers and sellers can face disputes, delays, or even financial loss.
How McManus & Co Helps
For Vendors: We carefully draft your Contract of Sale and Vendor’s Statement to ensure they’re compliant, accurate, and tailored to protect your interests.
For Buyers: We review the Contract and Vendor’s Statement before you sign, explain the fine print in plain English, and negotiate amendments where needed.
Conclusion
When buying or selling, timing is everything—but it’s also when hasty decisions can cause costly problems. By engaging the right team early, you give yourself the best chance of a smooth, stress-free transaction.
At McManus & Co Lawyers, we believe prevention is always better than cure.
Contact us to make your next move a success.