Sale of Land Amendment Bill 2016 presentation ... - … · Sale of Land Amendment Bill 2016 Amending the Sale of Land Act 1970

Sale of Land Amendment Bill 2016

Amending the Sale of Land Act 1970

Increased consumer protection: •  A purchaser must get a pre-contractual warning:

•  Setting out that the vendor is not the owner; and

•  Explaining the purchaser’s rights.

•  If no warning then purchaser can terminate as the contract is void.

What do the amendments to the Sale of Land Act 1970 do?

Increased consumer protection continued: •  Contract to include that vendor will have the title

within 6 months or other date as agreed in writing (the ‘vendor’s condition’).

•  If the contract has no ‘vendor’s condition’, then it is void and the purchaser can terminate.

•  The vendor must inform the purchaser on

progress towards meeting the vendor’s condition, when requested in writing.

What do the amendments to the Sale of Land Act 1970 do?

Increased consumer protection – the vendor: •  Must use reasonable endeavours to

become the owner within 6 months.

•  Must notify the purchaser within 10 days of the vendor’s condition being satisfied.

•  Will have an enforceable contract if these conditions are met.

Deposits must be held in an Australian trust account by a licensed 3rd party •  Trust accounts are auditable. Greater penalties for breaches of the Act: •  Developers are subject to an increase of

fines from $750 to $100,000 for breaches of the Act.

Consultation

Extensive 1 year consultation led to the proposed amendments •  Industry came to Government requesting the

change of legislation.

•  Key Government agencies were consulted with.

•  Before drafting, Landgate consulted widely on the required changes.

•  Key stakeholders also provided comment on the draft bill.

Application of the amended legislation

•  Not retrospective.

•  Applies to contracts created after the Bill is proclaimed.

Summary of benefits

•  Greater consumer protection.

•  Greater certainty for land developers.

Any Questions?