Irregular/incomplete COS and S32

I have a conveyancer and buyer’s agent to help me make my first property purchase.

I asked my conveyancer to look over the COS and S32 and he found the following problems:
- incomplete Vendor’s Statement
- missing Land Tax certificate
- no disclosure of past or current building permits
- special conditions written into the COS eg: appointment reschedule fees, no single holding basis for adjustments on land tax

To me these sound like important things to address before going ahead with making an offer. Especially the two irregularities about land tax. But my BA said that conveyancers can often be a hindrance to the buying process because they will always find something wrong in a S32 and COS. He said that if I want to buy a property I can’t always trust the advice of a conveyancer as they often raise unnecessary or superficial problems with the paperwork that can cause a buyer to lose the deal.

When a conveyancer tells me about issues with paperwork, how can I know which items require seriousness attention and which ones are minor?

 

One advantage in defective s32s is that it can allow you to rescind the contract.

see s 32K sale of land act vic
SALE OF LAND ACT 1962 - SECT 32K Supply of false information or failure to supply information in section 32 statement or failure to supply section 32 statement may result in rescission

 

You cannot know, as you have no experience.

My personal bent is to do things to get the deal done and let the legal people mop up in my wake. Sometimes it is better to ask forgiveness than permission. I'm obviously biassed as a BA but I'd tend to go with your BA's advice and get it done knowing that if the legal stuff can't be resolved you can always rescind as @Terry_w says.

 

I see what you’re both saying, but surely it’s a waste of time and money jumping into an agreement that has lots of problems, isn’t it? If I make an offer and have to rescind it later, won’t that tie up valuable time that could otherwise be spent looking for other properties? Are conveyancers obliged to fix messes when their client goes against their advice?

 

It is like an option. You can back out but they cannot. People pay to get into these sorts of agreements.

Speak to your lawyer about the risks before doing so though.

 

A Buyer’s Advocate slagging off a legal advisor who is just doing their job according to their professional obligations. Wow.

If the BA is acting in your best interests, they will respect the professional opinion of your legal advisor. If they don’t, their ethics are questionable.

 

Is that the same advice/level of risk that you would give to a newbie/client or only on your own deals where you are experienced and prepared to take the risk or sort out the issues?

 

Flammable cladding, endless water leaks, massive land tax liability at settlement, prohibitive planning overlays - some examples of legal “mopping up” that can be disastrous for clients. All potentially avoidable by listening to legal advice before signing a contract.

 

Yeah strictly my own deals where I am willing to take the risk......not suggested for newbies. Yikes!!

 

I agree completely. ....and why professionally, I like to deal with conveyancers / solicitors who can work odd hours and at short notice to review contracts to allow me to put (good) deals together, when time is of the essence.

 

Agreed. Solicitor has to give you best advice.

BA gets deals done.

Know their roles. And let them stay in their lanes.

I run a sales team. If i listened to the sales people and not the legal people I would be unemployed.

Let them educate you on the risk. Make the solicitor explain it to you in detail. So you understand. And decide from there

 

I am having the same problem of a s32. Vendor made wrong declaration on s32. Vendor conveyancer did not do a thorough check with council that a legal building permit is mandatory for type of bldg work done. My conveyancer did not find out till two months & 8 days later - after I pressed for an firmed answer. Very disappointed.

 

1. Defective section 32 in contract of sale.
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 the 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 declaration & did not do a thorough check with council. But as per Building Act, it is a mandatory.

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

3. If real estate agent knew now, that vendor did not not have a valid bldg permit, can real estate agent cease the sale immediately and refund full deposit to buyer?
4 Can agent sell property that may involve law suit.