This article is from the Australian Property Journal archive
THE Victorian government said the sun has set on dodgy property developers with new laws preventing developers from changing off-the-plan apartment sale contracts without the buyer’s permission.
Minister for Consumer Affairs Marlene Kairouz said the Sale of Land Amendment Bill 2018 will restrict the use of sunset clauses without the purchaser’s consent.
The changes implement key outcomes of the Consumer Property Law Review’s examination of the Sale of Land Act 1962 (The Act).
Further reforms to the Act and reforms to the remaining Acts examined as part of the Review – the Owners Corporations Act 2006, Estate Agents Act 1980 and Conveyancers Act 2006 – are still under consideration.
The changes will apply to all existing off-the-plan contracts.
The changes mean off-the-plan contracts cannot be terminated by a vendor under a sunset clause without the written consent of the purchaser or by order of the Supreme Court of Victoria.
Kairouz said this will prevent some developers from ripping people off.
She added that off-the-plan contracts commonly include a sunset clause provision that allows a vendor to terminate the contract where the plan of subdivision has not been registered by a specified date.
“Developers can exploit the sunset clauses by deliberately delaying completing construction of their project, in order to terminate signed contracts of sale, and re-sell the property at a higher price.
“We’re giving Victorians who buy off-the-plan more control and peace of mind by cracking down on dodgy developers.
“This is about restoring balance and improving consumer protections so that Victorians can enter the property market with confidence.” The Minister said.
The government will also introduce protections for people who purchase options to buy land as part of land banking schemes, including requiring money paid for options to be held in a trust.
Australian Property Journal
