Top 5 Red Flags in a Vendor Statement - Before You Inspect

Posted By Steve Janes  

When you are buying from overseas, your first impression of a property often comes from a screen.
You see the photos, read the listing, and feel the pull of possibility.
But before you ever think about booking an inspection, there is one document that can tell you whether the property is truly worth your time, the Vendor Statement.

Also called a Section 32 in Victoria, this legal disclosure contains critical information about ownership, restrictions, and hidden risks. For expats, reviewing it early is essential because it gives you clarity before emotion takes over.

Below we break down how to interpret Vendor Statements and spot the details that separate strong opportunities from hidden traps.

1. Easements and Shared Access
An easement is a shared right over land, such as for water pipes, driveways, or power lines.
If your future property includes one, it can restrict what you can build or modify.
For example, you might not be able to add a garage, fence, or even landscaping in that zone.

From overseas, it is easy to overlook this. Always ask your solicitor to confirm boundaries and check if shared access could affect privacy or value.

2. Zoning and Overlays
Every Melbourne property is subject to zoning rules that define what can and cannot be developed.
A property might look perfect in photos but fall under a heritage or bushfire overlay, making renovations expensive or difficult. Zoning maps are public and easy to review.
Inside The Shortlist we guide members on how to check local planning registers remotely and request supporting documentation from your buyer’s agent before committing to an inspection.

3. Unapproved Works
This is one of the most common red flags.
Decks, pergolas, or extensions without permits can become your responsibility once you purchase the property.
They may also void insurance or cause compliance issues later.

Look for mentions of “works not certified” or “no record of permit.”
If you see either, request clarification before moving forward.

4. Covenants and Restrictions
Covenants are legal clauses that limit how a property can be used.
Some control the building’s appearance, materials, or even the number of dwellings that can exist on a lot.
They are particularly common in newer subdivisions.

While they are not always deal-breakers, they must align with your long-term plan.
Inside The Shortlist, we include a step-by-step guide for discussing these restrictions with your conveyancer before you make any emotional commitments.

5. Planned Developments Nearby
For expats, time and distance make every decision more significant.
By reviewing the Vendor Statement before inspection, you eliminate risk early and keep your process grounded in facts.
This step protects you from emotional decisions and helps you focus only on properties that genuinely fit your strategy and Shortlist brief.

Key Takeaway
The Vendor Statement is more than a legal form - it is a filter.
It helps you decide which properties deserve your time, energy, and attention.
Read it first, understand it fully, and you will make faster, safer, and more strategic decisions from overseas.

Join The Shortlist to access:

  • The Vendor Red Flags video training

  • The full Pre-Offer Investigation Guide

  • Templates for document review and due diligence coordination

These are the same tools we use to help expats buy confidently from abroad.