Parliament was quick to respond on the issue. The purchasers were entitled to cooling off rights – which they exercised. In the recent case of BP7 Pty Ltd v Gavancorp Pty Ltd NSWSC 265, the NSW Supreme Court held that:Ī contract arising from the exercise of a put option was not contemplated by section 66T(d) of the Conveyancing Act 1919 However, whether contracts arising from the exercise of a put option attract cooling off rights has always been a grey area. Section 66T(d) of the Conveyancing Act 1919 makes it clear that a cooling off period does not apply in contracts arising from a call option. When you purchase residential property in NSW, you have a 5-business day cooling off period after you exchange contracts. Schedule 1, Part 2 of the 2022 Regulation sets out the additional disclosure requirements of vendors in off the plan sale contracts, including (where applicable):Ī put and call option deed is an agreement where one party agrees to sell a property if requested by the buyer (a call option) and the other party agrees to buy the same property if requested by the seller (a put option). The Disclosure Statement must also annex documents such as a copy of the draft plan prepared by a surveyor, a draft floor plan, schedule of finishes and draft by-laws.ĭespite the 2019 changes to the legislation, the additional disclosure requirements were not added to the relevant regulations until now. Vendors now need to attach a Disclosure Statement to the contract which sets out key information like the sunset date and other conditional events. In 2019, the Conveyancing Act 1919 and the Real Property Act 1900 were amended to include additional disclosure obligations on vendors under off the plan contracts. Off the plan contracts – changes in 2019Īn off the plan contract is a contract for the sale of a residential lot that has not been created at the time the contract is entered into. The purpose has not changed since the 2017 Regulation. Rights and remedies of purchasers when those disclosure obligations have not been complied with. ![]() The purpose of the 2022 Regulation is to set out the:ĭisclosure obligations of vendors in conveyancing transactions and During this period, anything done in compliance with the 2017 Regulation will be taken to comply with the 2022 Regulation. There will be a 6-month transitional period from 1 September 2022 until 28 February 2023. The Conveyancing (Sale of Land) Regulation 2022 ( 2022 Regulation) commenced on 1 September 2022 and has now replaced the Conveyancing (Sale of Land) Regulation 2017 ( 2017 Regulation).
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