Developers will now have more time to amend their off-the-plan
sales contracts, as the default implementation date for the
consumer laws is likely to be delayed until 30 June 2012.
You may recall our recent
eAlert and the series of changes that have been made to
contracts of sale due to the consumer laws in the Consumer Affairs
Legislation Amendment (Reform) Act 2010 (Vic).
The new consumer law requires three notices to be displayed on
the front page of any off-the-plan contract, which means that
developers, agents and financiers will need to amend or have their
contracts reissued for any unsold lots.
The government is seeking to delay the implementation of the
consumer laws as they relate to contracts of sale so that a new
standard form contract of sale can be created. All off-the-plan
sales contracts, including the industry "standard form"
contract in the Estate Agents (Contracts) Regulations 2008 (Vic)
will need to be amended to take into account:
the changes to the notice requirements for off-the-plan
changes to the cooling-off exceptions
changes to the Estate Agents Act 1980 (Vic) as a result of
the consumer laws, which also include changes that relate to
company charges, which will come under the new Personal Property
The delayed default implementation date may still be amended by
the government, but it is unlikely to be as soon as 1 September
2011 as originally proposed.
We will provide further updates as they occur, but if the
legislative amendments are finalised to delay the relevant trigger
date to 30 June 2012, existing contracts do not need to be amended
at this time to include the notice requirements.
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.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The recently enacted National Consumer Credit Protection Act 2009 (National Credit Act) establishes a new national licensing regime for the regulation of consumer credit in Australia. The new regime includes a licensing requirement. If you currently engage in a credit activity, such as providing credit or advice in relation to credit, you may need to register with ASIC before 30 June 2010. Failure to register in time will result in you being required to cease the credit activities as of 1 July 2
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).