The Property Occupations Act 2014 has been proclaimed and is due to commence on 1 December 2014.

The amendments to the Land Sales Act 1994 (LSA), Property Law Act 1974 (PLA) and Body Corporate and Community Management Act 1997 (BCCM) are also due to commence on 1 December 2014.

These amendments and the new Property Occupations Act 2014 are designed to reduce red tape in the sale and purchase of real property. The changes will be of particular benefit for developers who can now use a more streamlined off the plan sales contract.

Key changes include:

  • Removal of Form 30C Warning Statement
  • New requirement for buyer's execution panel to refer to cooling off period rights
  • Changes to how the cooling off period can be waived
  • Disclosure obligations: disclosure obligations in the LSA will be transferred to the BCCM for a proposed lot in a community titles scheme
  • Disclosure material in option to purchase: where a buyer is provided with disclosure material when entering into an option to purchase the seller will not be required to re-issue disclosure material when the option is exercised. However, where a nominee is the buyer under the contract entered into, upon exercise of the option, the nominee must be given a new disclosure statement
  • Disclosure material: disclosure material will no longer be required to state the names and addresses of the seller and buyer
  • Further Disclosure: further statements must be given at least 21 days before the contract is settled (currently the requirement is to give notice within 14 days of the seller becoming aware of the change). The buyer's right to terminate arises if the buyer is materially prejudiced by the change
  • Sunset dates for strata lots: for a proposed lot in a community titles scheme, the seller may nominate a 5½ year sunset date (currently 3½ years)
  • Increased deposit: for 'off-the-plan' contracts a deposit may be up to 20% of the purchase price without making it an instalment contract
  • EOI deposits: expression of interest holding deposits must be paid directly into the trust account of an agent or law practice (and may no longer be held by a seller).

Developers will need to ensure their template off the plan sales documents are updated to reflect these changes and incorporate the new requirements.

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.