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New off-the-plan laws to see ‘greater’ purchaser transparency

tax-and-legal-advice
1 minute read

New off-the-plan laws to see ‘greater’ purchaser transparency

by Emma Ryan 10 December 2019 1 minute read

New requirements for residential off-the-plan contracts have kicked off in NSW, with the aim to “bring greater transparency and certainty” for purchasers.

New off-the-plan laws to see greater purchaser transparency
December 10, 2019

The new requirements for residential off-the-plan contracts started on 1 December 2019, under changes to the Conveyancing Act 1919 and Conveyancing (Sale of Land) Regulation 2017.

According to an update from NSW Fair Trading, the key changes are:

• Vendors must give buyers key information about the development, including copies of the proposed plan, proposed by-laws and a schedule of finishes before contracts are signed.

• Vendors must notify purchasers of material changes to what was disclosed.

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• Buyers are allowed to end the contract or claim compensation in some cases if they are materially impacted by changes made from what was disclosed.

• Vendors must provide a copy of the final plan at least 21 days before the buyer can be compelled to settle.

• Existing legislation was widened to clarify that the Supreme Court can award damages where the vendor terminates under a sunset clause.

• The cooling-off period was extended to 10 business days, with any deposit to be held in a trust or controlled account until settlement.

“The changes bring greater transparency and certainty for purchasers who buy residential property off-the-plan and follow an extensive review by the Office of the Registrar General,” NSW Fair Trading said.

New off-the-plan laws to see ‘greater’ purchaser transparency
New off-the-plan laws to see greater purchaser transparency
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About the author

Emma Ryan

Emma Ryan

Emma Ryan is the deputy head of content at Momentum Media.

Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.

Email Emma on: [email protected]Read more

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