There are new laws that apply to off-the-plan contracts and these changes are welcomed by Hunter Legal & Conveyancing as they provide stronger protections and greater transparency to purchasers of residential property off-the-plan contracts.
These new laws include disclosure requirements. The vendors will have to attach a disclosure statement and draft documents must be attached to the contract that outlines key information, like sunset dates (the day by which the developer can fulfil their obligations as stipulated in the contract) and other conditional events.
What will be your rights as a purchaser?
Purchasers can rescind the contract within 14 days of exchange if the Disclosure Statement, draft plan or relevant prescribed documents are NOT attached to an off-the-plan contract before it is signed.
A disclosure statement MUST include a draft plan, prepared by a registered surveyor. The draft plan must show the following:
- The proposed lot number
- Area of the subject lot and sufficient information to identify the location
- Any proposed easements or a nonpossessory interest in the land similar to the better-known easement, which gives the holder the right to take natural resources such as petroleum, minerals, timber, and wild game from the land of another affecting the lot in question; and
- The site of any restrictions proposed on the use of the land or positive covenant affecting only part of the lot in question.
For Strata lots the following applies:
- If the lot is a proposed strata lot, the location of parking and storage areas don’t need to be identified on the draft plan, and there doesn’t need to be provision for the allocation of the costs of shared expenses in a building management statement or strata management statement
- The draft floor plan and draft location plan must be shown
The lots in a proposed community, precinct or neighbourhood scheme must show the draft location diagram, draft detail plan and the draft community, precinct or neighbourhood property plan.
In addition to the above, other draft documents must also be provided. These are:
- Any s88B instrument proposed to be lodged with the plan
- Any proposed schedule of finishes; and
- There are other documents for specific lot types as detailed in the table below:
Type of Lot
Lots in a proposed strata scheme
· The draft by-laws
Lots in a proposed community, precinct or neighbourhood scheme
· Draft management statement; and
· Draft of any proposed development contract
Land that comprises or includes a lot in a proposed development scheme
· Draft strata development contract
Lots in a proposed strata scheme that relates to a part strata parcel
· Draft strata management statement required under section 99 of the Strata Schemes Development Act 2015 for the registration of the strata plan
Land that will be subject to a building management statement under Division 3B of Part 23 of the Conveyancing Act 1919
· Draft building management statement