Victorian Property laws changed on October 1st so let’s find out how they impact your property purchase.
The Sale of Land Amendment Act 2014 (Vic) (the “Act”) came into operation on 1 October 2014. It affects, amongst other things, the information that must be disclosed by a vendor of land in a Vendor’s Statement (otherwise known as a Section 32).
Given that every vendor of land in Victoria is required to provide a Vendor’s Statement to a purchaser before the purchaser signs a Contract of Sale, vendors (and their agents) should be aware of the changes to ensure the information provided to prospective purchasers satisfies the requirements of the Act.
A failure to provide all of the required information in a Vendor’s Statement may result in fines for the vendor of up to $44,283.
In addition, the purchaser may then obtain a right to rescind the Contract of Sale, leaving the vendor out of pocket with no sale on foot.
What are some of the changes?
Some of the key changes that have been made include:
- Many of the current warnings to purchasers have been removed and replaced by a due diligence checklist. This checklist will need to be given to purchasers before they buy property.
- Only services (ie gas, water, telephone, sewerage and electricity) that are not connected to the property will need to be specified
- Section 32 statements will no longer have to be included in the Contract of Sale
- Inactive owners corporations will not be required to provide a certificate
- Planning overlays affecting the land will need to be specified
What if I signed before 1 October but settlement is post 1 October?
If a Vendor’s Statement was prepared and signed before 1 October 2014 then it can continue to be used for the sale.
It may need to be amended or updated, so check with your property solicitor to make sure you’re abiding by the Act.
If however your property is withdrawn for sale and then put back on the market, or if your Vendor’s Statement is prepared post 1 October 2014, you will need an entirely new Vendor’s Statement.
If you have a real estate agent acting for you on a sale, and you’re selling either vacant residential land or land with a residence, your agent must provide the new due diligence checklist to all prospective purchasers from the time the land is put on the market for sale.
If you do not have a real estate agent acting for you, you will be required to provide the checklist yourself.
Subscribe & don’t miss a single episode of michael yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to michael yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.