New Vendor Section 32 Statements
Property Law: 23 March 2019
Amendments to the Sale of Land Act require changes to be made to the form of and information contained in Vendor Statements required to be given to purchasers before the sale of real estate. The changes commenced on 1 October 2014.
Check List
If the real estate is vacant residential land or land on which there is a residence the selling agent or the vendor where there is no selling agent must provide to a purchaser a due diligence check list. The check list is available on the Consumer Affairs Victoria website.
New Obligations
In addition to the information previously required the following changes have been made:
- The form and set out of the Statement has been altered to group information differently.
- A copy of the Register Search Statement (title search) must be provided. A copy of the Certificate of Title is not sufficient.
- The name of any planning overlays affecting the land must be provided in addition to the zoning.
- The name of any utility service provider is no longer required. It is only necessary to state whether any services are not connected to the land.
- Owners Corporations (OC)
The Vendor must state if the OC is inactive in the previous fifteen months by not:
- holding an annual general meeting;
- fixing any fees; and
- holding any insurance.
Inactive OC's may give rise to other issues for a Vendor particularly in relation to the continuing obligation for an OC with three or more lots to hold insurance.
Vendors with an active OC may elect to specify the prescribed information or obtain a certificate from the OC.
Other matters
- It is no longer obligatory to attach a copy of the Vendor Statement to the Contract. It is recommended this practice continue to prove the purchaser received the statement.
- More detailed obligations to disclose information relating to land contaminated by agricultural chemicals or affected by livestock disease.
- The old form Section 32 Statements may continue to be used if the statement is signed and dated before 1 October 2014 and the property remains on the market for sale.