Other changes to the Land Sales Act and the Body Corporate and Community Management Act for the sale of “off the plan” property are:
1. Further Statements for Variations of Plans
The seller must, by way of a further statement, disclose any changes between the original plans provided to the buyer and the registered plans.
The further statement must be provided at least 21 days prior to settlement.
The buyer can terminate the contract within 21 days after receiving the further statement if the buyer would be materially prejudiced due to the changes.
2. Option Agreements – simplification of disclosure when entering a subsequent contract
Option Agreements now need to have a disclosure statement (with disclosure plan); however, if the parties are the same when the option is exercised and a contract is entered into, a further disclosure statement is not required.
3. Pre settlement requirements for land subdivisions
The Act now requires that the seller of a proposed lot in a land subdivision must provide a copy of the registered survey plan and surveyor certificate to the buyer at least 14 days prior to settlement.
The surveyor’s certificate must confirm there are no differences between the registered survey plan and the disclosure plan provided to the buyer (as amended by the last provided further statement – if any).
Accordingly, if the seller wants settlement 14 days from notice of registration, surveyor’s certificates and copies of the registered plan (as lodged for registration) will need to be provided to buyers prior to registration of the plan.
Sellers are no longer required to provide copies of the as constructed plans.
There are no similar requirements for proposed lots sold in a body corporate.
4. No transitional provisions
The Act provides that any contracts executed following commencement will need to comply with the new provisions. This means that any contracts prepared prior to commencement and not fully executed at the date of commencement will need to be re-issued.
Following commencement, sellers will need to be careful in ensuring the version of contract signed by a buyer is correct before counter- signing.
5. Payment of monies by a purchaser
Deposits have always been payable to trust accounts, however any holding deposits or deposits paid under intentions to buy must also be paid to a trust account.