Developers take heed. Update to changes to the Sale of Land Act- means some extra protection for buyers, where property is not yet owned by the developer.
Update to e-Bulletin Issue #66
On 3 April 2017, the Sale of Land Amendment Act 2016 (the Act) came into effect in Western Australia. The legislation introduces greater protections for consumers when signing sales contracts for land that is not yet owned by the developer.
Landgate have now clarified and updated information that was previously communicated which also includes variation to the Approved form of the statutory warning that must be used. This e-Bulletin replaces issue 66 Changes to the Sale of Land Act – what you need to know.
Developers often sell lots before they have completed the purchase of the parent lot that will be subdivided to create those lots. This is because they need the commitment of purchasers in order to cover their upfront financial requirements, including the cost to purchase the parent lot that will be subdivided. This can expose the purchaser to risk, for example, if the finance for the development falls through or if an unscrupulous developer absconds with the deposit monies. The Act provides the necessary protections for both the consumer and the developer in these instances.
Changes to the Act, which will affect you and your clients in cases where the seller does not yet own the land, include the following:
For more information on the Act, visit the Landgate website.
Please note the CPD core activity ‘Managing risk in relation to legislative changes’ covers the amendment to the Sale of Land Act in relation to off-the-plan sales.
Source: Commerce - Settlement industry bulletin issue 68: Update to changes to the Sale of Land Act
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