Section 32 Vendor Statement & Due Diligence Checklist
The Victorian Parliament has amended section 32 of the "Sale of Land Act 1962” (Vic) (Act) placing additional obligations on vendors and estate agents.
Some of the changes you need to know as a vendor or estate agent
- All section 32 statements (Vendor’s Statements) need to be updated and the correct format (with all required information) to be used from the commencement date;
- Section 32 statements will no longer be required to be attached to the contract of sale;
- Details of planning overlays affecting the land will need to be included;
- Non-connected services must be disclosed;
- Notices or orders affecting the land must be disclosed;
- A register search statement must be attached (rather than a copy of the certificate of title);
- Owners Corporation Certificates may not be required when certain prescribed information is provided instead;
- A new Due Diligence Checklist needs to be provided to purchasers from the time the real estate is offered for sale. This obligation will fall on an estate agent if one is appointed. Failure to provide the checklist may result in a fine of up to 60 penalty units. However purchasers will have no right to rescind a contract of sale if a checklist was not provided.
- If a Vendor’s Statement is provided and signed before the commencement date, a new Vendor’s Statement may not need to be provided unless the property is taken off the market and then put back on the market.
Estate agents should ensure that the new Due Diligence Checklist is available at opens for inspection and available via the agent’s website.
Contact Sarah Lindsey, Property & Conveyancing Lawyer, for further information.
Hicks Oakley Chessell Williams is a member of Property Exchange Australia (PEXA),
Australia's online property exchange network.
