NSW Conveyancers have been asked for consultation of off the plan contracts for residential property with the NSW Government’s Office of Registrar General.
According to the consultation paper, purchasers need adequate protections in off the plan contracts, and an appropriate balance must be maintained between the varying interests of developers, vendors and purchasers under these arrangements.
The contracts have had consistent updates throughout the last seven years, more so throughout the COVID-19 pandemic.
The latest review to the contract will be a consolidation and review of all the recent changes to ensure the current legislative framework for off the plan contracts continues to meet the needs of the community.
This paper considers the effectiveness of the current laws and asks whether appropriate controls are in place for both a rising and a falling market. It also outlines possible areas of improvement in response to emerging issues in off the plan transactions.
Proposed off the plan changes
The ORG is asking for consultation on a range of options to bolster existing consumer protections and to address emerging issues in this sector, including:
- introducing minimum readiness requirements before residential land can be sold off the plan,
- enhancing disclosure requirements for the contracts,
- imposing penalties for developers who offer to sell residential land off the plan without appropriate disclosure,
- expanding existing sunset clause protections to include other conditional events, like the need for development approval by a certain date, and
- solutions to address the increasing size of the contracts.
The closing date for submissions has been extended to 5pm on Friday, 3 February 2023, with additional information and submission entry found here.
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