To provide adequate protection to the off the plan purchasers, changes to the conveyancing legislation and regulations will commence on 1 December 2019 and will affect anyone dealing with off the plan sale contracts. Up until now, as an off the plan purchaser, you are shown only plans and drawings along with some basic sketches and brief details prepared for the proposed building works and you are expected to commit your money based on this document. And often the property once built turns out to be quite different than what you were promised to get at the time of signing the contract.
What is Changing?
From 1 December 2019 there will need to be a Disclosure Statement provided with the Contract showing lot sizes, numbers and descriptions and schedules of finishes as well as Sunset Dates and conditional events if included. The new laws include requirements for properly prepared plans drawn by registered surveyors being included, together with details of any restrictions, easements or covenants affecting the property necessarily included. Strata properties will need draft location and floor plans, draft by-laws and management statements.
If the documents aren’t included buyers will have an option to rescind the Contract. Currently, Developers could frequently change initial paper drawings designed for building work to match with the changing construction requirements on the one hand and to ensure compliance with the council requirements on the other hand since variations to some extent are permissible by the contract. The new Rules require notification of any changes, with an option to rescind if the changes are significant or the option to claim compensation of up to 2% of the purchase price if you agree to go ahead with the changes. A Ten (10) business day cooling off period will apply for all off the plan Contracts. New law also prohibits the release of deposits to developers as a way of stopping a lot of issues. The current Contract for Sale of Land is being updated to deal with all the changes.
How Can K Group Legal Assist You?
Our boutique Law office located in the Central Business District of Sydney is recognized for its excellence in providing legal services in residential and commercial conveyancing transactions. We take great pride in high quality, and efficient legal services at reasonable cost. Our clients get results with their purchase and sale transactions on a timely and cost effective basis, and we are easy to get along with and will go the extra mile for you. If you are buying or selling your property, you could contact us directly on 0421 677 920 or (02) 8379 1811 or email: email@example.com