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