It is time for conveyancing in NSW to move into the modern era, and to help with the push towards e-conveyancing a new 2014 Contract for Sale and Purchase of Land has been introduced which will take effect from November 2014. A key driver for the new Contract was the introduction of unfair contract terms in Australian consumer Law, which left the current contract open for challenge. There will be a transitional phase and the 2005 Contracts will be available until at least the end of next year (i.e. Dec 2015).
The major changes:
- The variable information on page 1 will have more space and expand over 2 pages. Also words have been changed and definitions revised to eliminate any ambiguity (and to show legislative changes) such as completion date will now be known as date for completion;
- There will be updated legislative reference, for example in relation to swimming pool compliance (a quick reminder that all Vendors will need to have a Certificate of Compliance by 29 April 2015);
- Clause 3 has been added which deals substantively with deposit bonds or guarantees. The Vendor will have to elect whether a deposit bond is to be used, as the default choice will be ‘no’;
- Clause 5 has been added and allows the Vendor to annex requisitions on title to the Contract. If such requisitions are annexed to the Contract it is deemed that the purchasers have made those requisitions;
- Clause 8.2 has been added which allows the purchaser protection where a vendor defaults in an essential respect. Under the old Contract the purchasers had no such right and the Vendor had all the rights;
- And finally, Clause 30 has been added to allow electronic transactions. The Vendor will need to indicate whether the conveyance will proceed electronically (this will be indicated on the front page of the contract, the default is ‘NO’). Once a purchaser is found they will need to confirm whether they are happy to proceed with the electronic transaction within 14 days, if the purchaser does not advise then the transaction will default to paper. It also enables the parties to default to paper in case all parties of the transaction are not a part of PEXA.
Whilst there have been other changes the above provide a brief look at most of the major changes. We will keep our Agents and clients informed of when the new Contract will be available. If you have any questions in the meantime please contact our Department Manager Holly Gilholme on 07 5506 8202 or email email@example.com.