Wednesday, December 14, 2005

Victorian Disclosure

Vendor disclosure is required in Victoria by s 32 of the Sale of Land Act 1962. Under the Victorian legislative regime the vendor must disclose the following in a signed statement:
• for any land upon which a residence is erected, any information concerning building permits within the last 7 years given with respect to any building on the land;
• particulars of any charge imposed under any Act;
• a description of any easement, covenant or similar restriction affecting the land;
• details of any planning instruments and the zoning of the land;
• a warning to the purchaser concerning permitted user; namely, where a planning instrument prohibits the construction of a dwelling on land outside the metropolitan area;
• details of any rates and taxes charged on the land;
• particulars of any notices, order declarations, reports or recommendations of a public authority or government department or an approved proposal affecting the land of which the vendor might reasonably be expected to have knowledge; this includes notices of intention to acquire;
• basic information about the following services: gas, electricity, water, sewerage and telephone;
namely, whether the service is connected, and if so the name of the authority supplying the service. If a connected water or sewerage supply is below the standard level, particulars as to the level supplied.
Furthermore, a warning must be supplied to the effect that the purchaser should check with appropriate authorities about the availability and cost of connecting any unconnected service;
• if there is no road access to the property, a statement to this effect;
• particulars of any current land use restriction notice that affects the land due to contamination;
• a copy of the certificate of title or other evidence of title to the land;
• if the vendor is not the registered proprietor or owner, evidence of their right or power to sell; and
• if the land is subject to a subdivision, certain information must be disclosed concerning the subdivision.

Where a vendor supplies false information or fails to supply all the information required the purchaser may rescind a contract entered into on the basis of that information63 at any point before completion or becoming entitled to possession or rents and profits. However, the purchaser may not rescind the contract if the court is satisfied that the vendor has acted honestly and reasonably and ought fairly to be excused for the contravention and that the purchaser is substantially in as good a position as if the relevant disclosure had been made. The burden of proof lies with the vendor.

No comments: