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Rates notice legally required in a section 32?

Discussion in 'Legal Issues' started by alicudi, 18th Aug, 2016.

  1. alicudi

    alicudi Well-Known Member

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    Melbourne, Australia
    Hi

    I have just signed a contract today as my offer was accepted on purchasing a small factory to store all my toys in.

    I noticed that the Section 32 does not contain a copy of the rates notice and only has a summary paragraph stating that Water rates, OC fees and Council Rates are no more than $4000 per year.

    My question to those in the know...Is a Section 32 that has been prepared for a property for sale in Victoria legally have to have a copy of the council rates notice in it?

    Regards,

    alicudi
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    My understanding is that it is not legally required. But if it is not this may give you an opportunity to terminate the contract as it does not include all statutory disclosure documents. I am not sure if a paragraph satisfies this. Your right to terminate may be limited in time too.

    This sort of question should be answered by your property solicitor.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Requirements for commercial properties do vary from residential transactions too. Eg requiring a contract before going to market.
     
  5. JacM

    JacM VIC Buyer's Agent Business Member

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    The rates notice is not legally required, but normally if you ask the agent politely for it they'll get a copy from the vendor. The first rates notice of the financial year is the one that shows you the unimproved land value vs capital improved value (unimproved land value is handy to see where it'll place you in terms of land tax brackets). On the other hand, the most recent notice is the one that tells you where owings are up to. If the vendor is in arrears, it's nice to have an understanding of whether there'll be enough proceeds from the sale to pay out the debtors.
     
  6. alicudi

    alicudi Well-Known Member

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    Location:
    Melbourne, Australia
    Hi all

    Thanks for your very quick replies. It has put my mind at ease, I didn't want any loop hole to exist for the vendor to have an opportunity to cancel and walk out of the deal due to a small technicality such as no rates notice in the section 32.

    Regards,

    alicudi