Why does an Owners Corporation certificate have to be current?

If the property that you’re considering buying is affected by an Owners Corporation that is not inactive, in accordance with subsection 32F(1)(a) of the Sale of Land Act 1962 (“the Act”) the Vendor must either:

(A) specify in the section 32 statement the information prescribed for the purposes of section 151(4)(a) of the Owners Corporations Act 2006 relating to the owners corporation (“specify Owners Corporation information”); or
(B) attach to the section 32 statement a copy of the current owners corporation certificate issued in respect of the land under section 151 of the Owners Corporations Act 2006 (“attach a current Owners Corporation certificate”).

The key word in option (B) is “current”.  This means that the information contained in the attached Owners Corporation certificate must pertain to a period (e.g. a quarter) that includes the date that the Vendor Statement was made (signed).  If the Owners Corporation certificate pertains to a period that ends before the Vendor Statement was signed, the certificate can be deemed to be not current, and this would allow the purchaser to rescind the contract in accordance with subsections 32K(1)(b) and 32K(2) of the Act.

In general, we advise clients not to buy property where the Owners Corporation certificate is not current.

For more information about buying property affected by Owners Corporations and Owners Corporation certificates, please contact our experienced Melbourne conveyancer at 03 9815 2351.