March 21, 2013
At Scanlan Carroll we have been assisting clients to buy and sell property for more than twenty years. We have a comprehensive knowledge of the conveyancing process as well as established relationships with developers, agents, banks and others in the conveyancing industry. Our depth of experience enables us to deal efficiently with any issues which arise in the course of a property transfer transaction including lost title applications, adverse possession claims and caveat and mortgage matters.
Buying off the plan – Recent reforms
Buying or selling “off the plan” can be an advantageous for both vendors and purchasers but parties need to be aware of their rights and obligations.
Recent reforms to the Sale of Land Act 1962 (Vic) have meant that additional notices must be placed on the front page of the contract of sale. Notices to the purchaser must state:
(a) that subject to the limit set by subsection (1)(b), the purchaser may negotiate with the vendor about the amount of deposit moneys payable under the contract; and (b) that a substantial period of time may elapse between the day on which the purchaser signs the contract for sale and the day on which the purchaser becomes the registered proprietor of the lot; and (c) that the value of the lot may change between the day on which the purchaser signs the contract for sale of that lot and the day on which the purchaser becomes the registered proprietor."
Failure to include this notice may mean that the purchaser can pull out of the contract at any time up until settlement.
The repeal of s9AA(1)(a)(ii) means that the deposit on an off the plan sale may no longer be paid into a special purpose account by the vendor. The deposit now may only be paid to a statutory body or authority unless the contract provides that it may be paid to a legal practitioner, conveyancer or licensed estate agent acting for the vendor to be held by that person on trust for the purchaser until the registration of the plan of subdivision.
Whether you’re a developer looking to ensure your contracts are up to date and compliant or a purchaser looking to minimise their risk, please don’t hesitate to contact either myself or Foula Markos of our office to discuss your situation.
Rob Roy Rankin - Scanlan Carroll Business Lawyers
(03) 9853 0311 www.sclegal.com.au