The proposed Conveyancing (Sale of Land) Regulation 2022 (proposed new Regulation) is intended to replace the existing Conveyancing (Sale of Land) Regulation 2017 from 1 September 2022.
The Regulations have not yet come into effect but when they do, they will impose even stricter Vendor disclosure requirements, and will require some Vendors to add additional prescribed documents to a Contract for Sale (relating to matters of title and a property’s use). Failure to comply with such disclosure requirements will provide Purchaser’s with additional remedies to rescind the Contract for Sale following exchange.
The new Regulation will include a new section titled “Purchaser Remedies”. The new Regulation will clearly set out the circumstances in which a Purchaser may rescind a Contract or an Option to Purchase residential property. Some examples for which a Purchaser may rescind a Contract for Sale or Option include:
1. The Vendors failure to attach prescribed documents to the Contract for Sale;
2. Vendor’s failure to attach a Disclosure Statement to an off the plan Contract;
3. Breach of a warranty prescribed under the Conveyancing Act;
4. A Purchaser under an Option to purchase residential property to which a Contract for Sale is attached may also rescind the Option for breach of a prescribed warranty.
With the above changes due to be enacted in September 2022, we invite both Vendors and Purchaser’s thinking of selling or acquiring property to contact our team of highly qualified Property Solicitors on (02) 4627 3333 for advice before you proceed.
This article was published on 20/09/22 and the information is valid only to the date of publishing. This article should be considered merely general and non-specific on the subject matter and is not and should not be considered or relied on as legal, advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.