Sale Of Land Amendment Act 2016 Passed By State Parliament

Sale Of Land Amendment Act 2016 Passed By State Parliament

Western Australia Minister for Lands Terry Redman

New Laws Passed For Buying Lots Off The Plan

Victor P Taffa

  • Sale of Land Amendment Act 2016 passed by State Parliament
  • Legislation will protect buyers and support investment of subdivisions

State Parliament has passed new laws supporting the release of new subdivisions onto the property market while also protecting buyers.

Sale of Land Amendment Act 2016 clarifies the obligations of developers and buyers when purchasing a lot off the plan and provides greater transparency for buyers.

Lands Minister Terry Redman said until now, developers were able to sell lots in subdivisions before obtaining relevant approvals and land titles but the new legislation would make clear developers’ obligations.

“Under the new laws, developers will be required to meet a number of consumer protection measures before entering into sales contracts.” Mr. Redman said.

“These include becoming the registered owner of the lot by a deadline set out in the sales contract and having all deposits held in trust accounts.”

“Having deposits held in trust accounts will ensure buyers are able to obtain refunds should finance for the development fall through.”

Sales contracts will also contain warnings that the developer is not the current registered owner of the lot and will explain the purchaser’s rights.

“Sales contracts will now make buyers aware of the developer’s situation and will provide a deadline for the developer to become the owner of the lot.” Mr. Redman said.

“These amendments will clear up uncertainties, better protecting buyers while also supporting the release of affordable new lots and subdivisions into the market.”

Fact File

  • Sale of Land Amendment Act 2016 is the result of consultation with the property sector
  • The new laws will be enacted from March 31, 2017