The Victorian Building Authority (VBA) is leading the Statewide Cladding Audit on behalf of the Victorian Government.

The audit is being conducted in the interests of public safety as combustible cladding can increase the potential of a fire spreading quickly.

Things to consider: Are you a buyer, seller, owner occupier of an affected property?

If you are selling a property you are required to disclose any notices or orders, declarations, reports or recommendations issued by a public authority or government department that apply to the property as part of the Section 32 statement before a contract of sale is signed.

If you are buying it is important you are able to access information about the status of the building you are buying in to. You may also request to view record of any cladding inspections or assessments commissioned by the owners’ corporation.

If you are a real estate agent or body corporate manager, then it is equally as important for you to disclose any material facts or potential issues with the property in Section 32 and owners’ corporation certificates to prospective purchasers, including the presence of combustible cladding.

If the apartment building where you live is inspected as part of the audit, you will receive a letter from the VBA. Building managers, building owners or owners’ corporations will also be contacted by the VBA prior to an inspection taking place.

You can visit https://www.vba.vic.gov.au/cladding to search a number of privately-owned buildings identified with cladding.

What impact will this have on your insurance?

With regards to property insurance it is imperative you notify your insurance company if your building is exposed to this risk. Insurance companies are now cautious of affected buildings across Australia and in some cases, premiums are increasing or cover is being rejected all together. You can read more about the insurance risks on https://www.steadfast.com.au/well-covered/insurance-for-established-business/weathering-a-potential-catastrophe-cladding-risk-and-property-insurance

If you think you might be in a situation that requires some attention please call our office so that we can help you.