What are material facts?

Section 12(d) of the Sale of Land Act 1962 has been amended with effect from 1 March 2020 so that a seller who knowingly conceals any material facts about the land in their Vendor Statement shall be guilty of an offence and liable to a penalty of not more than 120 penalty units or to imprisonment for a term of not more than twelve months.

Examples of material facts about land which are known to the vendor or their agent but which may not be obvious to the potential purchaser include (but are not limited to) circumstances where:

• Prior tests or investigations have revealed (or the vendor or their agent otherwise knows of) a defect in the structure of the building, a termite infestation, combustible cladding, asbestos (including loose-fill asbestos insulation) or contamination through prior uses of the land
• There have been significant events at the property, including a flood, or a bushfire
• There is a history of pesticide use in the event the property had been used for horticulture or other agricultural purposes
• There are restrictions on vehicular access to a property that are not obvious during a property inspection
• Facts about the neighbourhood surrounding the property which may not be immediately apparent upon inspection (such as sinkholes, surface subsidence, development proposals) that would likely affect the use and enjoyment of the property to a greater extent than the usual disturbances and inconveniences of occupying land of the kind and in the local area of the land being sold
• The property during the current or previous occupation has been the scene of a serious crime or an event which may create long-term potential risks to the health and safety of occupiers of the land, such as:
  • extreme violence (for example, a homicide)
  • use for the manufacture of substances such a methylamphetamine
  • a defence or fire brigade training site involving the use of hazardous materials
• Building work or other work done without a required building approval, planning
  permit or that is otherwise illegal.

If you are looking for a trusted conveyancing company in Northcote area, contact Glenferrie Conveyancing on 03 9815 2351 for more information.