From December 1, new laws will be introduced for all residential “off the plan” contracts.
So, what are the key changes? A disclosure statement will need to be attached to the contract that outlines key information including draft documents.
Vendors will also be required to notify the purchaser of changes which make information that was disclosed inaccurate in a “material particular”. The cooling off period will be extended from five days to 10.
A purchaser will be given 21 days to settle after being provided with the final copy of the registered plan, while any money paid by the purchaser must be held in trust or controlled money account during the contract period.
Finally, the definition of a “sunset clause” has been extended to capture more scenarios whereby a vendor may have a rescission right. The new provisions will apply to all off the plan contracts, regardless when it was entered into.