An off-the-plan contract is defined to mean a contract for the sale of a residential lot that has not been created at the time the contract is entered.
The new laws put extra disclosure obligations on vendors so that purchasers have greater transparency, new remedies and stronger protections when they buy property off-the-plan.
What’s Changing?
- Purchasers will now have a 10-Business-Day cooling-off period for off-the-plan contracts rather than 5 days;
- Purchasers will now have a 21 days settlement period rather than 14 days once vendors solicitor provide purchasers with a copy of the final registered plan, and any associated documents;
- Any money paid by the purchaser by way of deposit or instalment under the contract must be retained by the stakeholder in a trust or controlled money account and cannot be released to the vendor before settlement;
- Vendors will have to attach a Disclosure Statement to the contract that outlines key information, like sunset dates and other conditional events.
What’s a Disclosure Statement?
Disclosure Statement outlines key information, like sunset dates and other conditional events. New law makes it mandatory for a disclosure statement to must include a DRAFT Plan prepared by a registered surveyor and following information with it:
- Proposed lot number and area of the lot;
- Site of any proposed easements, restrictions or positive covenants;
- Any S88 Instrument proposed to be lodged with the plan;
- For strata property, car spaces, storage location is to be shown on the draft plan together with schedule of finishes and draft by-laws.
Purchasers can rescind the contract within 14 days of exchange if the Disclosure Statement, draft plan or relevant prescribed documents are not attached to an off-the-plan contract before it is signed.
For more information contact Sydney Conveyancing Team on 6989 4656.
