Young Couple Buying A New House

Proposed Reforms to Provide Greater Protection to Off-The-plan Property Buyers

The NSW Government recently announced that new laws giving further protection to off-the-plan property buyers would be introduced to state parliament later in the year.  NSW Property Minister Victor Dominello applauded the incoming reforms for aiming to provide greater protections to NSW property owners, and to correct what he called the ‘inequality buyer’s face in the current bargaining process‘.  

Additionally, the proposed changes will look to clarify the role of electronic contracts in land transactions.

The new law reform includes a number of proposed changes which are important for developers and future property owners alike to both recognise and understand.  The reforms provide greater protection for off-the-plan buyers through various changes.

These proposed changes have come about following in-depth consultations, after the Office of the Registrar General released the ‘off-the-plan contracts for residential property‘ discussion paper in December 2017.

Under the reform:

  • A vendor disclosure regime will be introduced, which will require all developers who sell off-the-plan properties to provide more details to the purchaser with regard to what they are actually buying.  
  • Developers will also need to provide a disclosure statement that comprises of: 
    • A copy of the proposed plan (including details of easements and covenants);
    • Proposed bylaws (in the case of strata and community properties); and
    • A schedule of finishes (where building work is required as part of the contract).  
  • Developers must notify the purchasers of any changes made during the development.  Buyers will also be given a copy of the proposed plans prior to the contract being signed, allowing them to either cancel the contract or make a claim for compensation if the developer does make any material changes.  
  • The cooling off period for off-the-plan contracts are to be extended to 10 business days, with deposits being held in a controlled account.
  • The widening of the definition of ‘sunset clause‘ will provide greater strength to existing sunset clause protections (see our previous blog on sunset clauses).

The proposed reforms will affect the flexibility of electronic contracts in land transactions, as recognised through the following proposed changes:

  • Greater clarity will be given with regard to land contracts, and the use of registry instruments being signed electronically.  Further to this, vendor disclosure being given by electronic means will be looked at.  
  • The reforms will remove the traditional requirements for deeds to be in paper, allowing these to be signed and witnessed electronically.

For further information on the proposal to remove barriers to electronic land contracts, we suggest reading through the Office of the Registrar General’s Discussion Paper on the topic.

If you have a query regarding any of the proposed changes, or you would like to speak with one of Coleman Greig’s Property lawyers regarding your off-the-plan purchase, please don’t hesitate to get in touch with:

Share:

Send an enquiry

Any personal information you provide is collected pursuant to our Privacy Policy.

Categories
Archives
Author

More posts

Employers should exercise caution when dismissing during probationary period

Can you dismiss an employee during the probationary period? Yes, but a recent case is a lesson in caution. The recent Federal Court decision of ‘Dabboussy v Australian Federation of Islamic Councils’ is a warning to employers to consider the importance of timing if dismissing an employee during probation.

The business impacts from the Government’s new cyber security laws

Cybercrime ‘is a multibillion-dollar industry that threatens the wellbeing and security of every Australian’. In an effort to combat the impact on businesses and individuals, the Australian Government has introduced cyber security legislative reforms into the Parliament.

A guide to intrafamily adoption

Adoption is the process where a parent’s legal rights for their child are transferred to another person. The formal adoption of a stepchild or close relative is known as intrafamily adoption.

Passenger movement and visa data-matching by the ATO

Heading overseas for work or a holiday? Taxation issues, including tax residency, should be on front of mind when departing from or arriving to Australia. Why? Because the Australian Taxation Office (ATO) can follow your footprints and, if you’re not careful, spring unexpected taxes on you.

Is it really necessary for my executor to have so many powers?

People often question why the executor of their estate needs to have so many powers. Simply put – if your executor isn’t given any additional powers by your Will, then they are limited to what is set out in the Trustee Act. One area that this can lead to issues in, is the family home – particularly if beneficiaries aren’t in agreement.

Essential terms of a commercial lease

A commercial lease is a contract that details the rights and obligations of a tenant and landlord. So, what are the necessary terms of a commercial lease?

Responding to data breaches

In the final part of our four-part series on your business’ responsibilities related to cyber attacks and data breaches, Special Counsel John Bennett how businesses should respond to data breaches, including application and requirements of the Notifiable Data Breaches Scheme.

Security of personal information

Part 3 of a four-part series on your business’ responsibilities related to cyber attacks and data breaches where Special Counsel, John Bennett provides an overview of some court decisions and proceedings where ‘security’ of personal information has come into issue.

Parental alienation in Family Law

The concept, Parental Alienation Syndrome, was initially brought about by American psychiatrist Richard Gardner in 1985. The term parental alienation is used to describe a situation where one parent is involved in psychologically manipulating their child to turn against the other parent.

Are you liable for labour hire workers if they are injured?

Many employers (host employers) engage employees of labour hire companies, particularly in the building and construction, hospitality and manufacturing industries. However, what happens when one of these employees gets injured at the host employer’s work site? Who is liable for the injuries?

© 2024 Coleman Greig Lawyers  |  Sitemap  |  Liability limited by a scheme approved under Professional Standards Legislation. ABN 73 125 176 230