The NSW government has announced an intention to introduce new laws in late 2018 to provide further protections to off-the-plan purchasers. The foreshadowed changes include:

  • a vendor disclosure regime that will require developers who sell off-the-plan to provide more detail about the development to purchasers. Off-the-plan contracts will need to attach a Disclosure Statement which must:
    • include a copy of the proposed plan including details of easements and covenants;
    • for strata and community titles, include proposed by-laws; and
    • set out a schedule of finishes where building work is required as part of the contract;
  • developers will have to notify purchasers of changes made during construction. If a purchaser will be materially impacted by a change, they will have the right to rescind the contract or claim compensation;
  • existing sunset clause protections will be strengthened by widening the definition of "sunset clause";
  • the cooling-off period for off-the-plan contracts will be extended to 10 business days and deposits will be required to be held in a controlled account; and
  • parties will have greater flexibility to enter into electronic agreements, including signing documents electronically.