If you are – there are a variety of details we recommend checking before you sign the contract or before it becomes unconditional.
For example, if the unit was built in the last 20 years, we recommend checking whether it may contain combustible cladding. Combustible cladding is cladding (outside skin of a building used to provide insulation and weather resistance) which can burn rapidly if it catches alight.
Despite its dangers, Australia has more than 3,400 buildings which contains combustible cladding. The material was banned by the Victorian government on 1 February 2021 but the units built prior to this may still contain combustible cladding. If you buy a unit with combustible cladding, you may as a new owner become liable for massive rectification costs of removing and rectifying the cladding – we have seen some worst case examples of owner corporation’s charging $40,000 per each unit.
Although no enquiry can definitively determine that there is no combustible cladding used in the build of an apartment, there are a variety of avenues you can explore to learn about the cladding history of the apartment:
1. Thoroughly review the Section 32 statement from the Seller;
2. Review carefully the owners corporation certificate and the check the minutes of meetings which might mention court action or experts reviewing the cladding or notices received from government authorities;
3. Enquire with the owners corporation and request an inspection of the owners corporation’s records / ask for a new owners corporation certificate;
4. Request a discussion with the owners corporation manager or building manager and ask if they know whether combustible cladding has been used; if any Building Notices / Orders or Emergency Orders have been issued; whether enquiries into the building’s cladding have been previously made by anybody or any relevant body; and request evidence of the apartment’s safety measures; and
5. Ask the local council if they are aware if the apartment has combustible cladding.
To ensure you have enough time during your purchase to make these enquiries, we recommend including a special condition in your contract to grant you time to make enquiries regarding the building’s fire safety and status of its cladding materials or that the contract is conditional upon the property not having any combustible cladding.
If you are thinking about or are in the process of buying a unit, please call Hendersons Legal on 03 9629 2211 or message us today.
This content is intended as commentary and should not be construed as legal advice.
For more information call David Henderson on 03 9629 2211.
