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Further to our
eAlert! regarding the changes to notice requirements for all
off-the-plan contracts, new legislation has been proposed that may
assist property developments and agents.
You will recall that the notices required by the Consumer
Affairs Legislation Amendment (Reform) Act 2010 (Vic)
(Warnings) to be included on the front page of a contract of sale
are:
the purchaser may negotiate with the vendor about the amount of
deposit moneys payable under the contract (subject to the limit set
by section 9AA(1)(b) of the Sale of Land Act 1962
(Vic))
a substantial period of time may elapse between the day on
which the purchaser signs the contract of sale and the day on which
the purchaser becomes the registered proprietor of the lot
the value for the lot may change between the day on which the
purchaser signs the contract of sale and the day on which the
purchaser becomes the registered proprietor.
If the Residential Tenancies and Other Consumer Acts
Amendment Bill 2012 (Vic) (Bill) is passed, developers will
not have to put the Warnings on the very front page of contracts,
but instead in a "conspicuous" place in the contracts. As
such, if the Bill is passed, developers will be able to keep
marketing materials on the front page and include the Warnings
elsewhere in the contract.
Further, the Bill proposes to ensure that a purchaser's
right to rescind a contract does not extend to circumstances in
which a vendor fails to include the Warnings. However a vendor is
subject to a penalty of A$1,408.40 for every contravention of the
Sale of Land Act.
If passed, these amendments would be a positive change for
developers and agents in relation to off-the-plan contracts of
sale.
We understand that some of our clients have already begun to
place the Warnings on the front page of their contracts. However,
if the Bill is passed you will only need to put the Warnings in a
"conspicuous" place, such as the signature page or with
the cooling off notices. Until 1 December 2012, there is no need to
include the Warnings in your contracts at all. We will monitor this
Bill and inform you of your requirements in relation to the
Warnings via future eAlerts
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.
Middletons has been awarded a 2012 EOWA Employer of Choice for
Women citation acknowledging our commitment to workplace
diversity.
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