There has been a massive increase in the number of off-the-plan contracts over recent years in NSW.
In 2006/07 there were just 2,148 off-the-plan contracts, contributing to 1.25 per cent of all residential property sales across the state.
Last financial year there were 29,022 off-the-plan sales, accounting for about 11.5 per cent of all residential property sales in NSW.
That’s why the State Government is moving to bolster protection for property buyers who opt for off-the-plan contracts.
It is now seeking public feedback on a raft of proposals aimed at bolstering protections for home buyers purchasing a property off-the-plan.
The review will examine the modern application of the Conveyancing Act and tackle a number of issues around off-the-plan contracts.
This includes information developers must disclose to buyers, cooling off periods, holding of deposits and sunset clauses.
“For many, purchasing a property is one of the most significant financial decisions they will make in their lifetime,’ says State Member for Wollondilly Jai Rowell.
“It shouldn’t be a feeding frenzy for developers trying to shaft locals taking their first few steps into the market,” he said.
“More than ever it is vital that home buyers have all the relevant information they need to make an informed decision.
“Plus NSW is booming and buying off-the-plan is becoming increasingly popular.’’
The Liberal MP says that the proposals put forward by the State Government are “absolutely trying to deliver stronger protections for home buyers, but it doesn’t stop there.
“It also will bring much improved clarity for developers,’’ Mr Rowell says.
In November 2015 the State Government introduced laws to stop the misuse of sunset clauses in off-the-plan contracts.
Under these laws, a developer requires either the permission of the purchaser or court approval before the sunset clause can be triggered to terminate a contract.
The discussion paper for the latest review is available for comment at www.registrargeneral.nsw.gov.au
Submissions close on January 30, 2018.