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Amendments to Sale of Land Act 1962
3 Mar 2020

Key changes to the Sale of Land Act 1962

The Sale of Land Amendment Act 2019 makes a number of amendments to the Sale of Land Act 1962, including an amendment to Section 12(d) and the insertion of Section 12A.

Section 12A of the Act (as amended) states:

“The Director of Consumer Affairs Victoria may make guidelines to assist vendors and their agents to understand what a material fact is likely to be for the purposes of section 12(d)” 

Section 12(d) of the Act (as amended) further states that:

“Any person who, with the intention of inducing any person to buy any land- 

(d) makes or publishes any statement, promise or forecast which he knows to be misleading or deceptive or “knowingly” conceals any material facts or recklessly makes any statement or forecast which is misleading or deceptive shall be guilty of an offence under the Act…”

This clearly indicates that a vendor or their selling real estate agent must disclose all known material facts, as soon as a prospective buyer indicates that they are considering purchasing the property. The vendor or selling real estate agent must answer all questions from prospective buyers as frankly as possible. This will inevitably provide more protection from unfair sales practices for property purchasers.

Section 12(d) of the Amendment Act replaces the word “fraudulently” with “knowingly”. This makes it an offence if the vendor or their selling agent knowingly conceals a material fact about the property, with the intention of inducing a potential purchaser to buy the land. It is sufficient if a vendor or their selling agent withholds a material fact which is known to be material, with the intention of inducing a potential purchaser to buy the property.

What constitutes a material fact under the Sale of Land Act 1962?

A material fact is a fact that would be important to a potential purchaser in deciding whether or not to buy the property and at what price. The fact must be material and can be so in two (2) ways:

  1. An average, reasonably informed purchaser with a fair-minded understanding of the property market would generally regard the information as material in their decision to buy the land.
  2. If the fact about the land is known by the vendor (or the selling estate agent) to be important to the potential purchaser. This knowledge can arise if a potential purchaser asks a specific question about the land or where the potential purchaser informs of their intended use of the land.

Other factors to be considered when determining whether something is a material fact would include:

  1. Whether the fact is known by the vendor;
  2. The reaction of other potential purchasers to the fact, including whether knowledge of the fact may impact the potential purchaser’s willingness to proceed with the purchase; and
  3. Whether the fact results in the property being in a rare on unusual category or position.

General examples of material facts (which may be known to the vendor) may include:

  • a defect in the structure of the building, pest infestation, combustible cladding, asbestos or contamination through prior use of the land;
  • occurrence of a significant event at the property including flooding or bush fire;
  • restrictions on vehicular access to the property that is not obvious during the property inspection;
  • facts about the neighbourhood such as sinkholes or development proposals that may not be immediately apparent but would affect the use and enjoyment of the property;
  • building work undertaken without the necessary building permit, planning permit or constructed illegally; and
  • the subject property has been the scene of a serious crime which may create long term potential risks to the health and safety of the occupiers. Such incidents may include acts of extreme violence, a murder, a terrorist act or the use of the property of the manufacture of illegal substances.

When are material facts ought to be disclosed?

Material facts should be disclosed to potential purchasers as they indicate that they are considering purchasing the property. Continuing disclosures should be made if further material facts become known. Material facts can be disclosed:

  1. In the contract of sale or section 32 vendor’s statement;
  2. Before the public auction;
  3. Specific disclosures made to particular purchases in the course of negotiations;
  4.  In marketing material or information statement; or
  5. At the time of the physical inspection of the property by the potential purchaser.

If a potential purchaser asks a questions about the property, responses must be provided fully and frankly to the best of the vendor’s or their selling estate agent’s knowledge. If the vendor or their agent has no knowledge they can advise the potential purchase that they do not know.

For all further questions and inquiries on the Sale of Land Act 1962 contact our office on (03) 8590 8370.

This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.

Last updated: 3 March 2020

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Celal has been a great supporting presence during our first home purchase. My partner and I had used Haitch Legal for... contract reviews and conveyancing needs during settlement of our home purchase. Despite having a million questions Celal was always happy to answer them and guided us through the process. Everything was made simple for us to understand which gave us the right confidence to successfully purchase and settle our first home!read more
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I have engaged Haitch Conveyancing based on their 5 star reviews and their quick response and transparent... pricing.Celal and Halil reviewed couple of contracts for me and always pointed out important matters and provided change feedback in timely and consistent manner. When I found the one, Celal has reviewed the contract very promptly and kept me updated with all the progress during settlement period. Everything was calculated correctly and he ensured all involved parties and agencies are also informed. I cant thank enough to Celal and Halil for their service and making this home buying process as easy as.I strongly recommend Haitch Conveyancing to anyone in Victoria, Australia for all property matters.read more
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I utilised Haitch Conveyancing for my first property purchase and they were nothing short of brilliant. They were... thorough, prompt, always had time for me, and explained things in ways I easily understood. The whole team were amazing. I'd recommend them to anyone looking for conveyancing services in Melbourne, I wouldn't go with anyone else.read more
Henry Rosel
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20:10 10 Mar 20
Halil and team were nothing short of amazing! Answering queries within hours and having everything settled on time and... without hiccup.Will be using Haitch for all future settlements. Thanks again.read more
Aloka Moghe
Aloka Moghe
00:56 07 Mar 20
We knew very little about conveyancing process but Halil explained the process in detail to us and made the process... painless. Katarina was excellent with communication keeping us up to date as it progressed.Would highly recommend Haitch Conveyancing.read more
Ali Han Yenisehirlioglu
Ali Han Yenisehirlioglu
03:10 03 Mar 20
Haitch Conveyancing has provided legal services for us for a property settlement in Melbourne. Their service was very... personalized, on - time and flawless. I was able to reach them whenever i had questions and each time they took their time to explain all the relevant details to me. I would never work with any other law office for conveyancing ever again. I recommend Haitch to every Victorian.read more
Bob Airlie
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The team was fantastic, easy to deal with, everything was done electronically and via email. Can call at any time and... receive an answer to your questions.read more
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The Team at Haitch Conveyancing took care of conveyancing in a friendly and efficient manner.
Maajed Durrani
Maajed Durrani
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Halil & Katarina have assisted me with my property purchase. They are efficient & easily approachable. Replies to... email are very prompt. Highly recommended for their services.read more
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Friendly, helpful and experienced team who is very approachable and supportive. Thank you for helping through with my... first home purchase!read more
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The service was friendly and professionally. Highly recommended.
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Halil assisted me with my property sale. He is very approachable and efficient with his work. Very highly recommended... and fairly priced.read more
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Efficient team. They made our conveyancing process very easy
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Halil helped us with the conveyancing for the recent purchase of our first home. A potentially stressful process was... made very simple, always picks up the phone and quickly responds to emails and a very reasonable fee. Highly recommended and would work with again.read more
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Haitch Conveyancing act on my behalf as vendor. There were 2 townhouses both has settled on time perfectly. even though... there were some issues with the purchaser's bank etc. But Halil made it happened and both settled smoothly. Great service and highly recommended.read more
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Haitch Legal did an excellent job taking care of our property purchase settlement. They made the whole process seem... seamless. Halil and Katarina were always patient and accessible and willing to answer any question I had. Very reasonably priced too. Will use again.read more
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Halil & Katarina are approachable with queries. We use them for all our business dealings. Would highly recommend to... all !!!read more
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Highly recommended! Halil assisted us through our conveyancing and always replied to our emails and questions... promptly. His fees are also very reasonable and explained the conveyancing process to us. Halil and his team are very friendly and professional. We would use his service again.read more
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Halil and Katerina were brilliant. Very responsive and patient with all our questions. Highly recommend.
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Excellent service with very cordial staff . Thank you for your support and assistance.
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05:59 20 Dec 18
Halil and Katrina of Haitch Conveyancing assisted us in buying our family home. They were friendly and helpful, and did... great work. We are very happy to recommend them.read more
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Getting Halil Gokler to assist with our property purchase was the best decision we made. Halil's service and... professionalism went above and beyond his fixed quote for services. It paid off having a qualified lawyer provide this service as, when the conveyancers on the other side were incompetent and didn't settle on time, Halil was on hand with pragmatic advice to help us achieve a good outcome.read more
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We use Halil and refer our clients to him. We get good feedback. Great service with prompt response times at a... reasonable price. Highly recommend Halil and his team at Haitch legal. Thank You Halil from Demir & Co Accountants.read more
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