Cladding rectification arrangements can involve a building owner or owners corporation, a council and a lender. Under the relevant provisions of the *Local Government Act 1989* (Vic), a council may enter into a cladding rectification agreement and impose a charge to recover amounts advanced under the arrangement. The precise structure depends on the agreement and the statutory provisions that apply.
A buyer should request the relevant council information and agreement, and determine whether a statutory charge is recorded or otherwise affects the land. The review should identify the amount already overdue, future instalments, interest and fees, whether the charge runs with the land, and whether it will continue after the sale. The section 32 vendor statement must disclose the information required by the *Sale of Land Act 1962* (Vic), including relevant charges and liabilities that the purchaser may become responsible for. The contract may also allocate responsibility for particular amounts, but a contract clause cannot necessarily displace a statutory liability.
The settlement treatment should be confirmed from the legislation, the agreement, the council's current account and the actual contract. Arrears, current instalments and future liabilities should be distinguished rather than treated as one generic adjustment.
This is the kind of matter CMK Legal's property and conveyancing team handles.
A cladding charge can create a material long-term cost for an apartment owner or owners corporation. Obtain the underlying documents before signing and confirm the settlement treatment rather than relying only on a general statement in the vendor disclosure.
Law referenced: *Local Government Act 1989* (Vic), including Part 8B and relevant cladding rectification charge provisions; *Sale of Land Act 1962* (Vic) s 32A.