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Changes to Victorian legislation will clarify what information buyers are entitled to receive about their new property in the sales contract.
Currently, under section 32 of the Sale of Land Act, sellers are required to provide buyers with a statement outlining certain issues which might affect the value of their new purchase.
Under the new laws, section 32 would be updated to provide more guidance to vendors, buyers and solicitors as to what the contract must include.
Firstly, the scope of planning information has been clarified, with specific warnings removed and replaced with a general requirement to disclose any notices, orders or declarations relating to planning regimes.
The rules have also been tightened so that only government notices and approved proposals currently and directly affecting the land require disclosure.
Vendors of strata property will have more flexibility as to the types of owners' corporation information they provide.
In addition, vendors will only be required to disclose which essential services are not connected to the property, rather than providing a definitive list of all connections and service providers.
Finally, vendors will be allowed to provide a copy of the Register Search Statement and related documents, rather than a Certificate of Title.
Buyers will also be provided with a due diligence checklist, by either the seller or the seller’s agent.
The details of this checklist are currently being finalised by Consumer Affairs.