The new Conveyancing Amendments (Sunset Clauses) Bill 2015 recently assented to impacts all off the plan buyers.
In a nutshell, the bill contains the following:
- Any developer who is the vendor under a contract will be required to give notice to each purchaser before ending a contract.
- The notice must state why they propose to end the contract and they must give reasons for the project’s delay.
- The purchaser must agree to the termination of the contract.
- If the purchaser DOES NOT agree to the termination and the Lot (the subject of the contract) has not been created prior to the sunset date in the contract, then the developer will need to obtain an order from the Supreme Court seeking a court order for rescission of the contract.
- This new legislation applies to ALL contracts created after the law comes into effect.
- It will also apply to contracts where a purported rescission takes place on or after 2 November 2015.
This new legislation carries serious implications for all developers who may have relied on the sunset clauses expiration in order to rescind their contracts.
If you have an off the plan contract and you require any advice, please contact Hones Lawyers.