Section 32F of the Sale of Land Act 1962(Vic) (SL Act) says a vendor must include the following information in a section 32 statement:
- specify the prescribed information which must be in an owners corporation certificate (see section 151(4) of the Owners Corporations Act 2006) or attach a current owners corporation certificate
- provide a copy of:
- the owners corporation rules
- statement of advice and information for prospective purchasers and lot owners prescribed in schedule 3, regulation 12, Owners Corporations Regulations 2007 (Vic)
- the resolutions of the last annual general meeting
If the owners corporation is inactive, the above information can be omitted and the vendor can just specify in the section 32 statement that the owners corporation is inactive.
‘Inactive’ means it has not, in the previous 15 months:
- had an annual general meeting
- fixed any fees
- held any insurance.
Note also section 11 of the SL Act which provides that:
A person cannot sell a lot affected by an owners corporation unless the vendor or the owners corporation has a current insurance policy in accordance with the Owners Corporations Act 2006. Where a lot is sold in contravention the purchaser may avoid the sale at any time before the contract is completed.
Only subdivisions of two lots are exempt from the requirement to obtain insurance. See section 7 of the OC Act.
It follows that for a subdivision of three or more lots the client needs to be informed about the requirement to obtain insurance and the consequences of failing to comply with section 11 of the SL Act. If insurance is obtained for the owners corporation then the owner corporation is no longer ‘inactive’.