HOW TO DISCLOSE OWNERS CORPORATION INFORMATION CORRECTLY
When you sell a property in Victoria that forms part of an Owners Corporation, the law requires you to disclose specific information to the purchaser. This is not optional. It sits under the Sale of Land Act 1962 (Vic) and the Owners Corporations Act 2006 (Vic), and failure to disclose properly can allow a purchaser to walk away from the contract or claim compensation.
As explained by me as a licensed conveyancer at Victorian Property Settlements, clear and accurate disclosure protects both sides from disputes during the transaction. Most issues we see arise because sellers either guess, rely on outdated certificates, or misunderstand what has to be included. Getting it right is straightforward once you know what is required.
WHAT MUST BE INCLUDED IN YOUR OWNERS CORPORATION DISCLOSURE
In Victoria, you must disclose the full Owners Corporation Certificate (formerly known as a Section 151 Certificate). This must be current at the time the Section 32 Vendor Statement is prepared. The certificate must include:
• The current fees, including annual fees and any outstanding amounts.
• Any special levies struck or approved.
• Details of insurance, including building replacement insurance held in accordance with the Owners Corporations Act 2006 (Vic).
• Notices or orders affecting the property, including building notices or works required by the Owners Corporation.
• Details of the Manager, including their contact information.
• The Register of all Owners Corporation rules, including any consolidated or updated rules lodged at Land Use Victoria.
• Information on any pending legal proceedings the Owners Corporation is involved in.
• Any maintenance fund details, including current balances.
These items must be clearly included because the Sale of Land Act 1962 (Vic) requires accurate disclosure of any financial or legal matters that may affect the buyer’s decision to proceed.
WHY TIMING MATTERS
An Owners Corporation Certificate is typically valid only at the time it is issued. If the Owners Corporation strikes a new levy or issues a major works notice after the certificate is produced but before the property goes on the market, you must obtain an updated certificate. Allowing a purchaser to sign based on outdated information risks rescission rights.
We always recommend ordering the certificate as soon as you prepare the Section 32, and then checking again before the property is listed.
COMMON MISTAKES SELLERS MAKE
• Assuming the agent has the latest OC Certificate. They usually do not.
• Forgetting about special levies that were approved but not yet invoiced.
• Excluding major works notices because “the Owners Corporation is still discussing it.”
• Not realising that insurance excesses or shortfalls can also affect liability.
• Providing an expired certificate that is several months out of date.
These errors can give a purchaser grounds under the Sale of Land Act 1962 (Vic) to walk away, even late in the transaction.
WHAT PURCHASERS SHOULD LOOK FOR
As a buyer, take the time to read through the Owners Corporation Certificate, not just the summary page. Look for:
• Evidence of healthy maintenance funds.
• Special levies for roofing, cladding or structural works.
• Insurance cover that is up to date and compliant with the Owners Corporations Act 2006 (Vic).
• Rules that may affect your use of the property.
• Correct financial information matching the budget.
If you are unsure, speak to Victorian Property Settlements so we can walk you through each part of the certificate.
Victorian Property Settlements – Trusted for over 25 years by Victorian buyers and sellers. Visit: www.victorianpropertysettlements.com.au
FINAL THOUGHTS
A well prepared Section 32 makes a property far more attractive to buyers and reduces the chance of a collapsed contract. Accurate Owners Corporation disclosure is one of the key parts of this. If you are preparing to sell, we can manage the entire process and ensure everything meets the requirements of the Sale of Land Act 1962 (Vic) and the Owners Corporations Act 2006 (Vic).
For sellers, the simplest way to avoid delays or disputes is to have Victorian Property Settlements prepare your Section 32 Vendor Statement properly from the start.