Section 32 of the Victorian Sale of Land Act

Monday 4 August 2014 @ 11.39 a.m. | Legal Research | Trade & Commerce

Victorian law introduces changes to section 32 of the Sale of Land Act 1962 that outlines the information a property seller must provide prospective buyers. The change is scheduled to come into effect later this year.

Vendor’s Statement

The new section 32 statement, called the “vendor’s statement”, will outline all the information that a prospective buyer is entitled to know. The property seller must clarify relevant things such as the name of the relevant planning scheme and details of any undischarged mortgages or other charges applying to the land.

Other key changes to section 32 include:

  • clarifying planning information to be disclosed;
  • tightening requirements to ensure only government notices and approved proposals that currently and directly affect the land for sale are disclosed;
  • updating requirements for disclosing livestock disease and agricultural contamination notices;
  • providing greater flexibility to vendor of land affected by owners corporations;
  • limiting disclosure of essential services to only those services that are not connected to the land for sale; and
  • codifying common practice by replacing requirements for a copy of the Certificate of Title with a copy of the Register Search Statement and the document referenced in that Statement that shows the location of the land for sale.

The changes will also make the process easier for lawyers and conveyancers. The section 32 statements will have to be simpler and easier and will no longer have to be included in the contract of sale.

Due Diligence

Further to this, a due diligence checklist must also be provided as prescribed by the new section. The purpose of the due diligence checklist is to provide purchasers with a tool to make their own enquiries into issues of interest to them when they first start looking at properties. The details of the due diligence checklist are currently being finalised.

The amendment is due to take effect through the Sale of Land Amendment Act 2014 (No 33 of 2014) on the 1 October 2014.  

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Sources:

Section 32 changes - Legislation update

Sale of Land Amendment Act 2014, as reproduced on TimeBase LawOne

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