Selling property– What you need to know about the recent law changes

For NSW property owners who are looking to sell, you should be aware of changes to the Conveyancing (Sale of Land) Regulation 2017 that were effective from 1 September 2017.  

According to the announcement made by the Office of the Registrar General, ‘the Regulation simplifies existing provisions, updates terminology and references to other Acts and introduces some new disclosure requirements’.

Here we cover the key changes, and what you need to know to ensure your upcoming sales are completed as seamless transactions.

Additional documents for contracts for sale

Moving forward, sellers should be aware of the need to include additional documents in their contracts.

These documents include:

1.      Additional sewer diagram showing the location of sewer lines;

2.      All strata by-laws in force (if a strata title property); and

3.      Warning statement – loose fill asbestos.

If the above documents are not included in the contract, a purchaser may have the right to rescind. If your contract does not include these documents or warning statements, be sure to add them in before sharing with a potential buyer!

 Vendor warranties

In addition to the existing warranties, a vendor must also warrant that the following adverse affectations do not affect the land. If they do effect the land, then the vendor is obligated to disclose these details within the contract, and hence prior to the sale.

The vendor must warrant that the land is not affected by:

1.     Strata renewal (collective sale) under the Part 10 of Strata Schemes Development Act 2015;

2.      An order from Council under 121B of the Environmental Planning and Assessment Act 1979 in relation to the below:

a.      Discontinuing use of the premise;

b.      Demolishing / cease demolition of a building;

c.      Completion of necessary building works.

Austlii have an exhaustive list which can be found here.

3.      Rights of way under the Mining Act 1992.

 Need help navigating through your property contract? Get in touch now and find out how Fern Lawyers can help!