The ACT government has passed new legislation that will protect buyers from sunset and development delay clauses.
The Legislative Assembly approved the Civil Law Amendment (Sale of Residential Property) Bill 2021, which was introduced last month to put in place protection for off-plan buyers and limit the rights of developers to terminate contracts.
Under the new law, developers will only be able to use sunset and development delay clauses to revoke contracts if the buyer consents or is authorized to do so by an order. Supreme Court of ACT.
Under this new law, a developer who wishes to terminate a contract must provide 28 days written notice to the buyer, which indicates the reason for the proposed termination of the contract.
If the buyer does not agree, then the developer must apply for a Supreme Court order to allow termination of the contract.
However, it is important for the promoter to ensure that their reasoning presented to the Supreme Court is fair and equitable.
It is also crucial to note that if the developer decided to pursue the matter in the Supreme Court, he would be required to pay the buyer's fees unless he did so. was able to establish that the latter "unreasonably withheld his consent." ”
Attorney General Shane Rattenbury has said this new law will boost the confidence of all parties involved in off-plan contracts, especially after the recent trend for developers to terminate contracts, resulting in personal distress for some buyers.
“The housing market is already stressful for buyers, and it is often the first-time buyers who consider off-plan purchases,” he said.
“It was important to act quickly to address these concerns and protect consumers from terminations occurring in bad faith. "
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Photo by Daniel McCullough on Unsplash.
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