From 1 September 2011, a failure to include three dot points on
the front page of your contracts is all it may take for a purchaser
to rescind your off-the-plan sales contracts.
The impending change is critical for developers, financiers and
You may recall our series of eAlerts over the last 12 months
that have considered the various amendments to off-the-plan
contracts that are to be introduced by the Consumer Affairs
Legislation Amendment (Reform) Act 2010 (Vic).
The following new notices to purchasers are not only required in
the contract, but they must also be inserted on the front page:
subject to the limit set by section 9AA(1)(b) of the Sale
of Land Act 1962 (Vic), the purchaser may negotiate with the
vendor about the amount of deposit moneys payable under the
a substantial period of time may elapse between the day on
which the purchaser signs the contract for sale and the day on
which the purchaser becomes the registered proprietor of the
the value of the lot may change between the day on which the
purchaser signs the contract for sale of that lot and the day on
which the purchaser becomes the registered proprietor.
If these notices are not included on the front page, a purchaser
may be able to rescind the contract at any stage until the plan of
subdivision is registered.
It is imperative that developers and agents have the front pages
(including covers or other marketing pages) of their contracts
amended to include the notices for all contracts that will be
exchanged on or after 1 September 2011.
Finally, contracts of sale must also be amended by removing or
striking out the cooling off exception where a purchaser obtains
legal advice before signing a contract. From 1 September 2011,
purchasers will be able to obtain legal advice and still retain
their cooling off rights.
We are including the notices in new off-the-plan contracts we
prepare for our clients for all new instructions that we receive,
but given the dramatic consequences, developers should take stock
of their current contracts for unsold lots and either:
request new contracts for a development to be prepared and
destroy current contracts before 1 September 2011; or
insert the notice on the front cover of existing contracts and
strike out the cooling off exemption.
Please contact us if you have any queries regarding the new
notice requirements and your contracts of sale.
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.
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On 12th November 2016, new laws will commence to protect small businesses from unfair terms in standard form contracts.
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