Changes for contracts for off the plan sales
On November 22 last year, the Conveyancing Legislation Amendment Bill 2018 (NSW) received assent.
Once proclaimed, the Conveyancing Legislation Amendment Act 2018 (the Act) will have a significant impact on “off the plan” sales. Some of the major changes can be summarised as follows:
- Disclosure statements must be annexed to the contract
- If the disclosure statement becomes inaccurate, the purchaser may, in certain circumstances, have a rescission right
- Purchasers will not be required to settle any earlier then 21 days after service of notice of registration of a plan, and
- The cooling off period for off the plan contracts will be extended from 5 to 10 business days.
So, while certain sections of the the Act won’t commence until proclamation, developers and purchasers should be aware that change is just around the corner.