Written by Jodie Masson and Kate Clissold on August 15, 2017
The Conveyancing (Sale of Land) Regulation 2017 was published on 28 July and will come into effect on 1 September 2017. The regulations contain changes to vendor disclosure requirements and include new prescribed documents that must be included in contracts for the sale of commercial or residential properties. It is important to stay up to date with these changes to avoid a potential breach that could occur if you fail to include prescribed documents or warning statements.
Changes to Schedule 1 of the regulations contain new provisions for sewerage diagrams and strata by-laws, and have also introduced new warning requirements for loose-fill asbestos in certain properties.
Sewerage Service Diagrams showing the location of sewer lines in relation to the property are now required in addition to previously required sewerage infrastructure location diagrams (or ‘service location diagrams’), whenever both are available from the relevant authority. The two diagrams must be attached to the contract as prescribed documents.
In addition to this, a new warning requirement has been added with the introduction of a ‘loose-fill asbestos insulation warning’. This warning must be attached to the contract to alert parties to the possibility of Loose Fill Asbestos being present in the property and will be required in contracts exchanged on or after 1 September 2017. The previously required warning statement relating to Swimming Pools is no longer in the Regulation.
If you fail to include one of these prescribed documents in the contract, the purchaser is given a right to rescind the contract within 14 days of exchange.
The changes also relate to contracts involving strata schemes. The regulations now require that all strata by-laws in place for a strata scheme must be attached to the contract. Previously, only some exclusive-use by-laws needed to be included. Schedule 3 has also been amended to include new adverse affectations that a vendor must disclose, or otherwise warrant that they do not affect the land. These include situations relating to Strata Renewal, where the owners’ corporation have established a committee to conduct further investigation on a strata renewal proposal, but there are no minutes recording this resolution. Other adverse affectations added include orders under s121B of the Environmental Protection and Assessment Act 1979 (Item 12), and Rights of way under s235C of the Mining Act 1992 (Item 17).
For further information on these changes or the regulations contact Jodie Masson or Kate Clissold.
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To assist in leveraging the benefits of commercial listings, the REINSW has recently published an article in which our Ole Mitrevski provides some insights into what businesses prioritise when looking for commercial space
Read the article here – Locations or amenities: leveraging the benefits of your commercial listing
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Well done to the team in getting this very significant deal through to its successful conclusion at the end of last year! Special shout out to Jodie Masson, Ben Malone, Rachael Bass and Nicole Caryofyllis for all their hard work. We really value the opportunity to work with such great clients and such a landmark asset. Hopefully 2019 will bring us some more opportunities to work on deals like this…
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