Defective section 32, building work without building permit, Victoria

1. Defective section 32 in contract of sale in Melbourne
If vendor did not disclose building info as required as a MUST in s32,
will below missing building info qualified as a defective s32 and buyer can end contract any time & get full deposit back, based on a defective s32?

• Information regarding building permits issued in the past 7 years
• Particulars of owner-builder warranty insurance
• If the vendor is the owner-builder who completed building works there should be a written inspection report (which lists any defects) in the Section 32
• vendor did a building work & claimed building permit is not applicable.( Work is changing class from 10a un habitable to class1a habitable)

Vendor claimed building work is not applicable in 32. Vendor's conveyancer accepted vendor's incorrect declaration & did not a thorough check with council. But as per Building Act, change house class 10a un habitable to 1a habitable is a mandatory.

2. Building work without bldg permit.
What are consequences of vendor for doing unpermitted after council's building inspection?

3. If real estate agent knew now, that vendor did not not have a valid bldg permit & make a false declaration on s32, can real estate agent cease the sale immediately and refund full deposit to buyer?
4 Can agent sell property that may involve law suit imposed by council after building inspection.

 

Yes. It has passed cooling off period.

 

1. Vendor made a wrong declaration on section 32.
2. Vendor conveyancer did not do a thorough check with council for that the bldg work , by law, required a bldg permit. He took vendor's words for granted and accepted vendor's declaration of bldg permit is not required.
3. I pressed my conveyancer in early Feb for a valid answer, cos 2 months 8 days gone already, since contract signed in late Nov 2020. Settlement is on 1/3/2021. Then, on 8/2/2021, she told me, without a building permit may not prove the s32 is defective

 

Y, Can you share any light please?
Feel like, I was cheated by the process. From vendor, to vendor conveyancer, to real estate agent (who knew the unpermitted work) & my conveyancer. Just want to get my full deposit back. Property is in Melb

 

Simon Hampel is on line? please help

 

Isn't this a classic situation that your conveyancing solicitor should be advising and assisting you on?

 

You’re paying your conveyancer. They should be able to advise you about termination options due to the defective vendor statement, or refer you to a solicitor they work with.

 

She was supposed to to help me. I have been requesting the info since 3/12/2020. I asked her again on 8/2/2021, cos settlement date is on 1/3/2021. On 8/2/2021, she told me that no building permit was applicable in s32 is not enough to prove s32 is infective. I have challenged her again. She said she will seek advice from her legal staff.

 

I tried to end contract based on defective s32. she is not helping and said evidence is not enough

 

Thatbum, thanks. I will wait for her legal team's findings on 15/2/2021. Thanks

 

When did the cooling off period expire?

 

contract signed on 28/11/2020. Bldg info have been requested since 3/12/2020. Settlement is 1/3/2021.
Missing building info on s32 are 1. valid building permit. 2. proof of owners building work is less than $16,000. 3. If it is more than $16,000, must include builder defect report no more than 6 months from 28/11/2020 (cos date entered). 3. Owner builder insurance. 4 copy of certificate of final inspection or occupancy certificate. 5 Builder warranty insurance. All these were not included in s32

 

When did the contract become unconditional?

were you aware of the defects before signing, or asked your conveyancer to review the contract before signing?

 

Unconditional, in early dec 2020.
This is not related to defects. I referred to vendor declared that building permit is not applicable on section 32. I did not know vendor made a wrong declaration on s32 till 8/2/2021. He hid the bldg work that required a bldg permit by law. I did not ask the conveyancer to read it first. But she got the ecopy on the same date that I signed ie 28/11/2020.

 

Unconditional, in early dec 2020.
This is not related to defects. I referred to vendor declared that building permit is not applicable on section 32. I did not know vendor made a wrong declaration on s32 till 8/2/2021. He hid the bldg work that required a bldg permit I did not ask the conveyancer to read it first. But she got the ecopy on the same date that I signed ie 28/11/2020.

 

Y man
Thanks for advice. My conveyancer said she has a lawyer whom she can see advice internally. I am email her and the vendor to end the contract. But they were sitting on fence and would not accept it is a defective s32. I have set a deadline for conveyancer and vendor to reply on 15/2/2021. Thanks again. have a great week.

 

Of course they will say that. This is where the key differences between a conveyancer and solicitor come into play. You should be only acting on the strict advice of your solictor. They may prefer to communicate all matters with the vendors solicitor. Not you.