The NSW government has announced changes to the Conveyancing Act that will increase the protections for home buyers purchasing residential properties off-the-plan. Off-the-plan purchases are those made before the property has been built, and may expose purchasers to associated risks.
The reforms will affect disclosures, cooling off periods, the holding of deposits and sunset clauses by
- allowing buyers to terminate the contract or claim compensation if they are materially impacted by any changes to the plan that was disclosed,
- imposing a requirement that buyers be provided with a copy of the proposed plan, proposed by-laws and a schedule of finishes,
- extending the cooling off period to ten business days