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Developers could be fined under proposed greater protections for off-the-plan buyers that is being considered by the NSW Government.
And government is seeking public feedback on the off-the-plan reforms that could prevent lengthy delays that leave new homebuyers out of pocket.
The government says that 5 per cent of 180,000 residential purchases in NSW during the last financial year were off-the-plan, in which there is an agreement to buy a property before it is even built or the land is even subdivided.
Potential reforms aim to tighten contract rules to give buyers a clearer understanding of when they can expect to move into their new home, reduce uncertainty and scrap the ability for developers to draw the contract out by limiting sunset clauses.
TRANSPARENCY
Customer Service Minister Jihad Dib says the reforms are about greater certainty and transparency for buyers.
He says there is a “crucial role” for off-the-plan contracts but wants to cut down on abuses.
“… we don’t want situations where businesses try to run down the clock on a contract to sell to a higher bidder or mislead consumers by unfairly changing the goalposts for when they can move into their dream home,” he says.
“These reforms are designed to provide greater transparency as well as encourage the delivery of new homes. These proposals are about encouraging developers to be upfront about timelines and challenges to assist homeowners.”
“We encourage people to have their say on these proposals which aim to boost consumer confidence in the off-the-plan contract process and help NSW achieve our housing targets.”
NSW Registrar General Danusia Cameron says off-the-plan buyers need more information than other buyers because they are not able to inspect a property before buying it.
“It is important that the laws governing off-the-plan contracts also arm buyers with appropriate safeguards, meet the needs of the community and address emerging issues in the sector to ensure there is continued confidence.”
The government also wants to make it easier to remove private, outdated agreements from land titles (obsolete restrictive covenants) which can bind future landowners indefinitely.
Consultation is open until March 7.
For NSW residents to have a say, visit: www.haveyoursay.nsw.gov.au/offtheplan-contracts-covenants
