NEW LAWS TO PROTECT OFF-THE-PLAN BUYERS IN CANBERRA
Off-the-plan home buyers in Canberra have good news. ACT ‘s Attorney-General, Shane Rattenbury, has made an announcement for off-the-plan homebuyers. Consequently, new legislation has come into effect on Tuesday, November 9, 2021.
The newly introduced laws declare:-
- Property developers would not be allowed to rescind or cancel home sales
- Additionally, provisions would be made to cover many more delay events rather than targeting the sunset clauses.
THE MAIN FOCUS OF NEW LAWS
- The Attorney-General states is as an effort to eliminate the mal-practices of home sellers or developers. Developers try to follow practices to cancel the home sale. They were taking the advantage of the home rising prices.
- The new legislation will not be retrospective or backward looking.
- The developers will pay the legal costs of home sales cancellation.
THE REASON BEHIND THE NEW LAWS COMMENCEMENT
The new laws is prompted by a lot of complaints from people against property developer. They have invested in off-the-plan property from the 3 Property Group (3PG). However, earlier this year the developers cancelled the sale using the sunset clause.
As a result of cancellation, investors lost access to valuable government support programs. Also, they lost many home deals.
THE OBLIGATION OF THE HOME SELLERS OR DEVELOPERS UNDER CHANGED LEGISLATION
Under the ammended laws, the home sellers/developers should:-
- Give a homebuyer 28 days’ notice in writing. Notice should clarify the developer’s willingness to rescind a sale. Also, the homebuyer must give their consent to this proposal.
- In the absence of agreement, the ACT’s Supreme Court will decide. The Court’s decision will establish the deal cancellation as fair and equitable or otherwise.
However, the Supreme Court will have to consider numerous factors before giving final verdicts. For example:-
- Inability of getting development approval from the government. However, material cost increased significantly.
- Other reasonable delay provisions
The 3PG Company claimed that unfortunate events had hit them hard. They argue to support all the laws and the law’s reforms. Also, the company added that it favors fair law for all the affected parties.
IMPACT OF NEW LAWS IN CANBERRA
On October 11, 2021 Shane Rattenbury informed the ABC that 3PG group actions are ‘unconscionable.’ Also, the developers using the sunset clause to cancel the home sale was ‘very concerning.’
As a result, he has instructed his Directorate to change this law section. This action try to limit the developers trying to use laws to their benefit.
The new laws ensure no potential power imbalance between home developers and off-the-plan home buyers.