The Victorian Government has recently passed legislation that will affect a vendor’s disclosure obligations when selling property in Victoria. The changes relate to the information to be contained in the statement provided to purchasers under section 32 of the Sale of Land Act 1962 before they sign a contract of sale (commonly called a Section 32 Statement, or Vendor’s Statement).
Some of the changes include:
- provision for the Vendor’s Statement to be signed electronically by the vendor;
- increased flexibility as to the form of disclosure for properties affected by an Owners’ Corporation;
- vendors only being required to disclose those services that are not connected to the property; and
- increased penalties for vendors that fail to comply with their disclosure obligations.
For residential properties, there is also a new requirement for vendors (or their estate agent, where one is engaged) to make available to prospective purchaser’s a due diligence checklist. The due diligence checklist is to be in a Consumer Affairs Victoria approved form (which is yet to be released).
Although a commencement date for the changes has not yet been proclaimed, it is anticipated that they will have effect from 1 July 2014 (with some transitional provisions for Vendor’s Statements prepared prior to that date).
If you would like more information on the changes to the disclosure requirements, or if you are looking to sell your property, please contact us.
T +61 3 9611 0128