Have your say about off the plan contracts
The NSW Government is seeking community and industry feedback on issues affecting those buying residential land in NSW off the plan, as reforms introduced in 2019 undergo further review.
NSW Registrar General Danusia Cameron said the Government has released a discussion paper outlining options to bolster existing consumer protections and address emerging issues in the sector.
“The NSW Government wants to ensure buyers are protected and that the off the plan contract laws continue to meet the needs of the community effectively,” Ms Cameron said.
“I encourage those in the conveyancing and property sector to contribute to the consultations.”
The discussion paper considers introducing minimum readiness requirements before residential land can be sold off the plan, enhancing disclosure requirements for off the plan contracts and imposing penalties for developers who sell land off the plan without appropriate disclosure.
The paper also canvasses expanding existing sunset clause protections to include other conditional events such as the need for development approval by a certain date.
In 2019, the Government introduced new disclosure requirements for developers selling property off the plan that gave buyers more information up front and remedies including compensation in some cases if there are changes to what was disclosed in the contract.
“Despite these changes, reports continue to emerge of cases where developers are seeking to exploit the power imbalance between the parties to off the plan contracts and buyers are missing out on purchasing their dream homes months after contracts are signed,” Ms Cameron said.
“The discussion paper responds to community concerns about developers selling land off the plan before they own the land to be subdivided, or before having lodged a development application.”
The discussion paper has been released on the NSW Government’s Have Your Say website.
The public consultation is now open and due to close on Friday, 23 December 2022.
To read the discussion paper or make a submission visit the Have your say web page.