CHANGES FOR SALESPEOPLE AND LICENCE HOLDERS WHEN CHECKING THE CONTRACT FOR THE SALE OF LAND
New South Wales Estate Agents should be aware of changes to the vendor disclosure requirements.
Commencing on 1 September 2017, The Conveyancing (Sale of Land) Regulation 2017 (‘the Regulation’) will introduce changes to the vendor disclosure obligations affecting Contracts for the Sale of Land (CSOL) and options for the purchase of residential property.
Schedule 1 changes to the prescribed documents and warnings in a CSOL including:
- Clause 2 requires the following diagrams to be attached to a CSOL:
- A sewerage infrastructure location diagram (service location diagram); and
- A sewer lines location diagram (sewerage service diagram).
- Clause 8 provides all strata by-laws in force for the relevant strata scheme must be attached to the CSOL as prescribed documents.
- Clause 16 provides that a new warning statement in the prescribed form must be included in the Contract which alerts potential purchasers to the possible presence of Loose Fill Asbestos in certain properties.
- The previous warning statement relating to Swimming Pools has been removed from the Regulation.
Schedule 3 changes to the list of adverse affectations which a vendor warrants (unless disclosed) do not affect the land including:
- Clause 12 provides an adverse affectation includes where an order under section 121B of the Environmental Planning and Assessment Act 1979to demolish, remove, repair or make structural alterations to a building that has not been fully complied with.
- Clause 15 provides an adverse affectation includes where the owners corporation has passed a motion under Part 10 of the Strata Schemes Development Act 2015 that:
- a strata renewal proposal warrants further investigation;
- a strata renewal committee has been or is required to be established to give effect to this resolution; and
- minutes of the meeting recording the resolution have not been prepared.
- Clause 17 provides an adverse affectation includes rights of way under s235C of the Mining Act 1992
The Regulation commences on 1 September 2017. The Conveyancing (Sale of Land) Regulation 2010 continues to be in force up to and including 31 August 2017.
Lisa Jemmeson of Jemmeson & Fisher cautions agents and implores them to ensure that are up to date with all relevant legislation. Agents will be aware of the obligations placed on them by the Rules of Conduct. The Property, Stock and Business Agents Regulations, Schedule 1, provides for the general rules of conduct applying to all licensees and registered persons. It includes that an agent must have a knowledge and understanding of the Act and the regulations under the Act, and such other laws relevant to the category of licence or certificate of registration held (including, laws relating to residential tenancy, fair trading, competition and consumer protection, anti-discrimination and privacy) as may be necessary to enable the agent to exercise his or her functions as agent lawfully.
Real Estate Agents therefore need to be fully conversant with these changes, particularly the changes to prescribed documents to the Contract for the Sale of Land.
Disclaimer: The information in this article is correct as at 9 August 2017. This information is not to be taken as legal advice and at all times we recommend you seek independent legal advice regarding your own individual circumstances for your legal representative.
For further information, please contact:
Phone: (02) 9267 6263
Phone: (02) 9267 6263