Changes to Off the Plan Contracts
The Attorney-General and Minister for Justice has advised that in conjunction with the POA transition, the amendments to the Land Sales Act and Body Corporate Community Management Act contained in the Land Sales and Other Legislation Amendments Bill 2014 (LSOLAB) will commence on 1 December 2014.
The LSOLAB makes significant changes to disclosure requirements to Off the Plan CTS and Land Sales Contracts. Buyers and sellers should familiarise themselves with the changes and ensure that Contracts signed on and from the 1 December 2014 have all of the associated documentation which complies with the new requirements.
Significantly, Sellers of Off the Plan lots should be aware that:
Deposit amounts for Off the Plan lots can then be up to 20% of the Purchase Price (s68A of the Property Law Act);
There will be new requirements for Disclosure Plans (see new s213AA Body Corporate and Community Management Act and s11 LSA);
There will be varied requirements for Disclosure Statements (see new s213(2)(aa) BCCMA and s12 LSA);
Timeframes for provision of a Further Statement varying the Disclosure Statement change to then be 21 days before the Contract is settled (s214 BCCMA and s13 LSA);
An Off-the-Plan Contract for a proposed CTS Lot may then allow for a sunset date for settlement of up to 5 and 1/2 years after the Buyer enters into the Contract (s217B BCCMA).
Some existing Disclosure material prepared prior to the commencement of the LSOLAB will not comply with these changes. A failure to comply with the new requirements after commencement of the Amendments could give termination rights to a Buyer. For example, s213AA BCCMA will then require that the Seller provide the Buyer with a Disclosure Plan prepared by a Cadastral Surveyor prior to the Buyer signing the Contract – a failure to comply with this new requirement will provide the Buyer with termination right