Increased Protections For Off The Plan Purchases - Ironfish

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Increased Protections For Off The Plan Purchases

The NSW Parliament has approved amendments to the Conveyancing Act 1919 which will strengthen protections for buyers who purchase properties off the plan.

The new laws are intended to prevent rogue developers from rescinding on contracts using the sunset clauses to make windfall profits. Some NSW consumers reportedly had their contracts rescinded by a developer using the sunset clause, only for the land or apartment to be re-sold the same day for a higher price.

Effective from 2 November 2015, developers must gain the consent of a purchaser before rescinding a contract using a sunset clause. If consent is not given then the developer must apply to the Supreme Court to justify the proposed termination.

Input from 639 people was received during the three week public consultation that closed on 14 October 2015. Industry groups were also consulted.

The amendments passed with bipartisan support.

To read the media release click here.

Source: News Release, Property Council of Australia, 25 November, 2015

http://www.propertycouncil.com.au/Web/Content/News/NSW/2015/Increased_protections_for_off_the_plan_purchases.aspx