More changes for the off-the-plan market01 July 2019
Since the Conveyancing Legislation Amendment Act 2018 (NSW) came into place in November 2018, everyone has been awaiting the new Regulations that will trigger the start of changes to the off-the-plan market dealt with under the Act.
The NSW Government has released the much anticipated Discussion Paper for the proposed new Conveyancing (Sale of Land) Amendment Regulation 2019, which includes as its primary focus:
- the new form of disclosure statement that must accompany all off-the-plan contracts
- new remedies where a vendor has not met the new disclosure obligations
- alternative remedies of compensation where changes render the disclosure statement inaccurate in relation to material matters
- guidance of what is a “material matter”, and
- new prescribed warning statements highlighting the increased cooling off period for off-the-plan contracts to 10 business days.
The Discussion Paper is open for submissions until 24 July 2019.
Many of the changes will have significant impacts on developers and will require developers to prepare more fully before the launch of new sites due to the additional rescission rights for purchasers.
If you are a developer or in the business of financing developments, contact our developments partner Emanuel Oros who, together with our specialised commercial team, can assist you to plan and navigate the many challenges experienced in this area.