A vendor in Victoria provides a Section 32 statement that omits disclosure of a registered easement benefiting a neighbouring property. The purchaser discovers this after signing the contract but before settlement. What is the purchaser's strongest remedy?
Correct Answer
D) The purchaser may rescind the contract before settlement because the Section 32 is defective.
Where a Section 32 vendor's statement is materially defective—such as failing to disclose a registered easement—the purchaser has a right to rescind the contract under the Sale of Land Act 1962. This right exists because the legislation requires full and accurate disclosure before contract execution.
Why This Is the Correct Answer
The Sale of Land Act 1962 requires the Section 32 statement to disclose easements. Where it omits one, the purchaser may rescind the contract before settlement. A court may refuse rescission only if the vendor acted honestly and reasonably and the purchaser is substantially as well off, which a hidden registered easement rarely satisfies.
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