Is the property you are selling considered residential under the
Conveyancing Act 1919 (NSW)or is it rural
You have been approached by a land owner to sell a large parcel
of land which has a residential dwelling on it. So you proceed as
though this is the sale of a residential property without
considering the sale on its individual facts.
Residential property under section 66Q of the Conveyancing
Act 1919 (NSW) is defined as anything non residential, or with
a land area of less than 2.5 hectares (6.2 acres). As such,
property in excess of 2.5 hectares (whether it be
solely residential or farmland) is considered
rural. Now we know this, what size if the property you
have been approached to sell? Does it exceed 2.5 hectares?
If it does exceed this land area or is non-residential (used
solely for farming purposes or otherwise), the details below will
Marketing rural property
Under section 63 of the Property, Stock and Business Agents
Act 2002 (NSW) the requirement for an agent to hold a copy of
the proposed Contract for Sale states this only necessary in
relation to residential property. As such, marketing of a property
deemed rural under the above definition can be marketed prior to
the agent holding a copy of the proposed Contract for Sale.
Cooling off periods and Rural Property
Section 66X of the Conveyancing Act 1919 (NSW) requires
every contract for the sale of residential property to contain a
clause which provides for a 5 business day cooling off period.
This, as you can appreciate, causes confusion because the standard
clauses in a Contract for Sale contain this cooling off provision.
However, if you look closely once again it only applies to
Therefore, if you have established the property is not a
residential property under s66Q of the Conveyancing Act 1919
(NSW), then there is no legal obligation for the Contract for
Sale of a rural property to contain a cooling off period.
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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Warranties can be risk-shifting mechanisms when the party giving the warranty is not the party at fault for the defect.
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