Changes to notice requirements for all off-the-plan contracts postponed until 1 December 2012
You may recall our eAlert! regarding the changes to contracts of sale brought in by the Consumer Affairs Legislation Amendment (Reform) Act 2010 (Vic).
Developers and agents can rest easy for a while, with the implementation date for changes to notice requirements for all off-the-plan contracts being delayed to 1 December 2012.
How will you be affected?
The new consumer law requires the following three notices to be displayed on the front page of all off-the-plan contracts:
- the purchaser may negotiate the amount of deposit monies payable under the contract with the vendor (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 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 these notices are not included on the front page, a purchaser may be able to rescind the contract at any stage prior to registration of the plan of subdivision.
The above changes were due to come into force on 30 June 2012. The implementation date has been postponed until 1 December 2012.
How should you prepare for the changes?
Developers and agents must ensure the front pages (including covers or other marketing pages) of all contracts due to be exchanged on or after 1 December 2012 are amended to include the above notices.
Developers and agents should diarise the new implementation date of 1 December 2012.
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.
