Legal Update – Section 32 Statements, Penalty Interest Rates and East West Link.
Section 32 Statements - Checklist now available - Agents and Vendors get ready for 1 October 2014
Recent changes to the Sale of Land Act which were outlined in our blog which require vendors and their agents to provide a due diligence checklist to purchasers and prospective purchasers from 1 October 2014. Vendors must also use the new format of the Section 32 statement from this date.
Vendors and agents must ensure copies of the due diligence checklist are available to potential buyers at any open for inspection and include a link to the Consumer Affairs webpage or include a copy on any website maintained by the estate agent or the seller (if no estate agent is acting for the seller) from 1 October 2014.
Penalty Interest Rate Changes
Most leases and commercial documents provide that the interest rate payable (particularly the default interest rate) is referenced to the amount prescribed by Section 2 of the Penalty Interest Rates Act 1983 (Vic). Please note that the Department of Justice has decreased the penalty interest rate from 11.5% per annum to 10.5% per annum as at 11 August 2014. The last rate change was in February 2014.
East West Link and Rail Crossings – Compulsory Acquisitions
The process of acquisition of properties for the East West Link is underway with our clients already receiving a Notice of Intention to Acquire and then Notices of Acquisition. Formal acquisition via a Notice of Acquisition was provided to land owners and tenants in mid/late October 2014. Any party who has not received legal advice as yet and has received a Notice of Acquisition should obtain legal advice now and start preparing to respond to compensation offered by Linking Melbourne Authority. Tisher Liner FC Law have experience in compulsory acquisition matters and act for affected landowners who will be losing their land to the Authority for the East West Link and Vicroads in the level crossing removals.
With the change of Government, the East West Link may be on the way out, but land has already been acquired and compensation is now payable by the Government.