Outdated Certificates in Section 32: A Hidden Risk for Vendors in a Slower Market

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As the Victorian property market continues to experience longer selling times, vendors and agents are being caught out by a critical compliance issue: outdated certificates in Section 32 Vendor Statements.

This is no small matter. A stale certificate—especially one relating to an Owners Corporation (OC)—can have serious legal and financial implications, even when the vendor had no intention of misleading anyone.

Section 32 and the Requirement for Accuracy

Under the Sale of Land Act 1962 (Vic), vendors must disclose accurate, current information before a contract of sale is signed. This includes a range of certificates:

  • Municipal council (rates and planning)

  • Water authority

  • Land tax from the State Revenue Office

  • VicRoads (access/road)

  • Owners Corporation Certificate, where applicable

What Changes and When?

Most certificates are considered to remain "current" for around 90 days, but the law imposes a higher standard: they must be accurate at the time the contract is signed.

Of particular concern are OC Certificates, which become instantly outdated when a new Annual General Meeting (AGM) is held.

According to Section 151 of the Owners Corporations Act 2006 (Vic) and Regulation 11 of the Owners Corporations Regulations 2018 (Vic), the OC Certificate must include:

  • The most recent financial statement

  • Details of fees and levies

  • Minutes of the most recent AGM

  • Details of any insurance

  • Any notices or proposed works

If an AGM occurs after the certificate is issued and new minutes are produced, the certificate immediately becomes non-compliant. If a real estate agent or vendor continues to rely on that certificate—even inadvertently—they risk the buyer being entitled to rescind the contract or dispute settlement terms.

Real-World Example: A Common Mistake

An OC Certificate is obtained in February. The property is still on the market in April, and the AGM occurs during that time. The certificate held by the agent does not include the AGM minutes, nor any levy adjustments or updated insurance figures disclosed at that meeting.

The vendor proceeds to sign a contract in May, relying on that February certificate. Legally, this constitutes material non-disclosure, and the buyer may have the right to rescind the contract or sue for damages.

What Are the Consequences?

Failing to update a Section 32 due to an outdated certificate can lead to:

  • Rescission rights under Section 32(5) of the Sale of Land Act 1962 (Vic)

  • Claims of misrepresentation

  • Breach of Australian Consumer Law (misleading or deceptive conduct)

  • Delays, renegotiation, or even litigation

It’s worth noting that the vendor is responsible—not the agent or conveyancer—if outdated information is relied upon.

How to Avoid the Trap

  • Certificates should ideally be refreshed every 60–90 days, or immediately before a contract is signed

  • Vendors and agents should never rely on an OC Certificate once an AGM has occurred

  • If new AGM minutes are issued, a new OC Certificate must be obtained before marketing or signing contracts

  • Vendors should seek advice from a licensed conveyancer to ensure continued compliance throughout a prolonged sales campaign

Conclusion: Don’t Sleep on This Issue

In a brisk market, properties sell quickly and certificates rarely age. But in today's conditions, where properties often remain listed for months, this sleeper issue can burn unsuspecting vendors who relied on outdated documents.

The solution is simple but essential: refresh your certificates—especially if an AGM has taken place—and review your Section 32 regularly.

If you need assistance reviewing or updating a Section 32 Vendor Statement, we’re here to help.