Victoria apartment cladding can delay settlement if key documents are missing. Know what to ask the vendor, what to collect beyond the Section 32, and what your broker and conveyancer need to keep finance and valuation on track.
Cladding can be a boring topic right up until it delays a settlement.
Even when a building is safe to live in, cladding-related notices, rectification plans, insurance impacts, and owners corporation (OC) costs can create finance headaches. The key is to surface the facts early and share them with the right people.
This article is written from three angles: borrowers, conveyancers, and brokers.
General information only. Please get legal advice from your conveyancer and specialist advice if needed.
For borrowers
What you should be aware of
Cladding risk usually affects four things:
Finance approval: Some lenders want extra evidence before they will approve.
Valuation timing: A valuer may ask questions or flag the issue for review.
Costs: Rectification and fire upgrades can mean special levies or higher OC fees.
Insurance: Premiums and excesses can change, which can affect the OC budget.
The most common problem isn’t “cladding exists”. It’s missing documents, late in the process.
Questions to ask the vendor (and the agent)
Ask these early, and ask for answers in writing:
Has the building ever been identified for combustible cladding, façade, or fire safety issues?
Have there been any Building Notices or Building Orders? If yes, are they still active?
Is any rectification planned, underway, or complete? What is the timeline?
Have any special levies been raised, proposed, or foreshadowed?
Has the building insurance changed materially in the last 24 months? Why?
Can you provide recent OC minutes and financials that mention cladding, façade, fire safety, or major works?
Information you should expect (in addition to the Section 32)
A Section 32 is important, but it often won’t include everything a lender or valuer needs.
Ask for (or have your conveyancer obtain):
OC certificate (current).
OC minutes (at least the last 12–24 months).
OC financials and budget.
Levy schedule, including any special levies.
Any correspondence about cladding, façade works, fire safety, or council action.
Any reports (building consultant, fire engineer, cladding/façade assessment) if they exist.
If works are complete: evidence of completion and sign-off (see the “certification” section below).
What to pass on to your broker
If cladding is mentioned at all, tell your broker straight away.
Send what you have, even if it’s incomplete:
Contract and Section 32.
OC certificate, minutes and financials (if supplied).
Any notices/orders and letters about status.
Any reports and any “works complete” evidence.
Your settlement date and whether it can move.
Early disclosure gives your broker the best chance to pick the right lender pathway and avoid last-minute pauses.
Queries you should expect your conveyancer to raise
A good conveyancer will usually ask things like:
Are there any current Building Notices / Orders, and what do they require?
Are there compliance dates, penalties, or ongoing obligations?
Who pays for rectification and fire upgrades, and what does the OC budget say?
Are special levies already issued, or likely?
Does the contract fairly disclose known issues and costs?
If works are “complete”, what document proves the matter is actually finalised?
For conveyancers
Understanding cladding documents: “notice removed” vs “compliance evidence”
In practice, there are a few common document types you’ll see referenced:
A notice (often a request for information, reports, or action).
An order (a stronger requirement to do works by certain dates).
Project documents (scope, budgets, levy notices, contractor updates).
Sign-off evidence (documents that show the outcome is accepted).
One trap: a “notice withdrawn” or “order no longer active” can be helpful, but it may not satisfy lender concerns if there’s no clear evidence of what was done and whether the building is compliant for ongoing occupancy.
What conveyancers should make sure is conveyed to the broker
Even a short summary email can prevent a week of back-and-forth.
Where cladding is known or suspected, the broker usually needs:
Copies of any notices/orders and their current status.
Whether rectification is planned, underway, or complete (and the timeframe).
Special levy details (amounts, due dates, and whether there is more to come).
OC minutes and financials that mention cladding, façade, fire safety, insurance, or major works.
Any building/fire/cladding reports that exist.
Any completion/sign-off evidence if works are finished.
If you think “this might spook the lender”, it’s usually better to surface it early with context, rather than letting it appear later in a valuation comment.
What “certification” usually means
People often say “cladding certificate”, but what lenders normally want is evidence that either:
There is no cladding problem affecting the building, or
The problem was addressed and the works have been properly signed off.
That sign-off is often a bundle of documents rather than one magic certificate. Your conveyancer is the best person to confirm what is available and what it means.
A simple “Cladding Pack” request list (to keep things moving)
Contract and Section 32.
OC certificate.
OC minutes (12–24 months).
OC financials, budget, levy schedule.
Notices/orders and current status.
Reports (if any).
Evidence of completion/sign-off if works are finished.
Insurance summary (if the OC can provide it).
If you’d like, I can turn this into a one-page checklist you can give clients, with a “send to your broker” email template.
Book a time with me if you want to know more details how we can help you!
You may also want to check our other articles: Here.
