In November 2017 the NSW Office of the Registrar General released a discussion paper which identified a set of reform proposals designed to strengthen protections for consumers purchasing off-the-plan properties.
Following on from this paper the Conveyancing Legislation Amendment Bill 2018 (NSW) was submitted and assented by both houses of parliament on 22 November 2018. Although passed by both houses, the changes as they relate to off-the-plan purchasers will not take effect until a proclamation date to be determined by the NSW Government.
The changes will include:
- A 10 business day cooling off period to purchases of residential property off-the-plan.
- Developers will be required to attach a disclosure statement to the contract for sale. The disclosure statement must include a copy of the draft subdivision plan and other prescribed documents contained in the regulations. The regulations have yet to be introduced.
- If a developer becomes aware that the disclosure statement contains inaccuracies in a "material particular", a notice of changes must be served on the affected purchaser at least 21 days before completion of the contract. The purchaser may, after receiving a notice of changes, rescind the contract if a change notified in the notice of changes is such that the purchaser:
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- would not have entered into the contract had the purchaser been aware of the change, and
- would be materially prejudiced by the change.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.