Largely because of legislative changes, the Law Society of New South Wales periodically reviews and reissues the standard clause pages for the contract used when selling a property.
Despite the last edition being released only 2 years ago, there is another edition about to be released, mostly because of the introduction of legislation requiring purchasers to withhold part of the purchase price when the vendor was not an Australian resident.
What were the major changes in the 2014 edition?
More room provided in pages 1 and 2 to include all required information.
Space for the nomination of a buyer’s agent – a change that was requested by the Real Estate Institute.
In light of the new concept of unfair terms in contracts introduced by the Australian Consumer Law (sections 24 and 25), clause 8 was amended to give the purchaser a right to terminate the contract.
Dealing with the use of deposit bonds – this includes specifying the process to be followed with providing and returning the deposit bond.
Dealing with the common practice of vendors attaching to the contract a form of requisitions to be asked, and often the form of the answers.
The use of electronic certificates of title (e-CTs).
Clauses dealing with electronic conveyancing (aka PEXA).
What are the major changes in the 2016 edition?
Amendments to deal with the Foreign Resident Withholding Tax – such as a space for the entry of the duty assessment number allocated by the OSR.
Changes to terminology – e.g. the Registrar General division of LPI will become the Office of the Registrar General.
The obligation on the vendor to provide either a Certificate of Compliance or Certificate of Non-Compliance if the property has a swimming pool.
Introducing an obligation on the vendor (not the purchaser) to obtain a land tax certificate which is current for the year in which it is served on the purchaser.
Referring to an off-the-plan vendor’s obligation to comply with the newly introduced legislation governing a vendor’s right to rescind the contract during the sunset period (following the court’s decision in Jobema Developments Pty Ltd v Zhu and Ors  NSWSC 3).
If you require assistance with the sale or purchase of property, contact the team at Shire Legal on 95263444 or firstname.lastname@example.org.