New reforms affecting off-the-plan sales in NSW will commence on 1 December 2019, as announced on Friday, which will require developers to attach a "Disclosure Statement" to all contracts issued on and from 1 December 2019.
The Disclosure Statement sets out key commercial details of the property and the terms of sale, including whether the developer has any right to rescind due to circumstances which impact on the development, the status of development approvals and the title structure which will apply to the property (so that purchasers are aware if a strata management statement, building management statement or community scheme will apply, as purchasers will then need to know about the conditions and costs associated with those structures).
The reforms in the Conveyancing Legislation Amendment Act 2018 and Conveyancing (Sale of Land) Amendment Regulation 2019 will also affect the cooling off notice for all contracts for the sale of residential property.
Developers should be preparing now to ensure that they are in a position to issue contracts with Disclosure Statements from 1 December to avoid the risk of purchaser rescissions. The NSW Law Society released the Contract for the Sale and Purchase of Land 2019 Edition yesterday.
If you'd like to know more about how these changes will affect your business, or need help in getting ready for them, please get in touch.