An off the plan purchase is where a property is sold without the lot being created at the time the Contract was entered.
From the 1 December 2019 Vendors are to have the following annexed to the Contract:-
- Disclosure Statement https://www.registrargeneral.nsw.gov.au/__data/assets/pdf_file/0006/567663/Disclosure-Statement-Form-Off-the-Plan-Contracts.pdf
- A draft plan prepared by a surveyor.
- Any restrictions or easements are to be identified and a draft Section 88B Instrument.
- Any proposed schedule of finishes.
- A draft floor plan and location plan (for strata titles).
- Proposed by- laws (for strata titles).
If any of the above documents are not attached to a Contract then a purchaser can rescind the Contract within 14 days of exchange.
Other changes include:-
- The cooling off period has been extended from 5 business days to 10 business days.
- Deposits paid by purchasers are to be retained by a stakeholder in a trust or controlled money account. The deposit monies can no longer be released to the vendor/developer prior to settlement. Purchasers can still use bank guarantees or deposit bond, if agreed by the vendor.
- A final registered plan and any associated documents must be provided to the purchaser at least 21 days before settlement. Purchasers are not required to settle within that 21 day period.
If you need any assistance in regards to an off the plan purchase, kindly contact our property department team on 02 4721 6200.
Written by Megan Johnson