A Vendor must disclose to prospective Purchasers in a Vendor’s Statement any building works undertaken on the property within the last seven years with a building permit.
If a Building Permit has been issued within the last seven years, the Vendor must provide a copy of the Permit and Certificate of Occupancy or Final Inspection in the Vendor’s Statement, together with the Certificate of Warranty Insurance (if applicable). Warranty Insurance is required if the value of works in a Building Permit exceeds $16,000.00. If the Vendor is listed on the permit as an Owner Builder, the Vendor is required to provide an Owner Builder Defect Report that is no more than six months old and further Warranty Insurance if the works stated on the permit are for $16,000.00 or more. Failure to provide the report could result in the Vendor’s Statement being defective and may give the Purchaser the right to avoid the Contract.
In order to make sure the Vendor’s Statement is not defective in accordance with Section 32 of the Sale of Land Act 1962 (VIC), it is imperative the Vendor provides the full history of any building works carried out on the property to their legal representative.
If you are buying or selling property or would just like more information on the law governing Vendor’s Statements, please call us on (03) 5941 1622 or email firstname.lastname@example.org.