Developers will now have more time to amend their off-the-plan sales contracts, as the default implementation date for the consumer laws is likely to be delayed until 30 June 2012.
You may recall our recent eAlert and the series of changes that have been made to contracts of sale due to the consumer laws in the Consumer Affairs Legislation Amendment (Reform) Act 2010 (Vic).
The new consumer law requires three notices to be displayed on the front page of any off-the-plan contract, which means that developers, agents and financiers will need to amend or have their contracts reissued for any unsold lots.
The government is seeking to delay the implementation of the consumer laws as they relate to contracts of sale so that a new standard form contract of sale can be created. All off-the-plan sales contracts, including the industry "standard form" contract in the Estate Agents (Contracts) Regulations 2008 (Vic) will need to be amended to take into account:
- the changes to the notice requirements for off-the-plan sales
- changes to the cooling-off exceptions
- changes to the Estate Agents Act 1980 (Vic) as a result of the consumer laws, which also include changes that relate to company charges, which will come under the new Personal Property Securities Register.
The delayed default implementation date may still be amended by the government, but it is unlikely to be as soon as 1 September 2011 as originally proposed.
We will provide further updates as they occur, but if the legislative amendments are finalised to delay the relevant trigger date to 30 June 2012, existing contracts do not need to be amended at this time to include the notice requirements.
Please contact us if you have any queries regarding the new notice requirements and your contracts of sale.>
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