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Off-the-plan contracts undergo review

2 January 2018

Feedback is being sought on proposals aimed at bolstering protections for home buyers purchasing a property off-the-plan. The NSW Government has released a Discussion Paper for comment until 30 January 2018. Find out more here.

Minister for Finance, Services and Property Victor Dominello said the review will examine the modern application of the Conveyancing Act and tackle issues around off-the-plan contracts. This includes the information that developers must disclose to buyers, cooling off periods, holding of deposits and sunset clauses.

Minister Dominello said: “Purchasing a property is one of the most significant financial decisions a person or couple will make in their lifetime. It is vital that home buyers have all the relevant information they need to make an informed decision.

“NSW is booming and buying off-the-plan is becoming increasingly popular. But there are risks involved and buyers must look beyond glossy brochures and fancy display centres. The proposals are designed to both strengthen protections for home buyers and provide clarity for developers.”

The number of off-the-plan contracts has increased significantly in recent years. In 2006/07 there were 2,148 off-the-plan contracts, contributing to 1.25% of all residential property sales, compared to 29,022 in the last financial year, which is about 11.5%.