The state’s primary real estate body has applauded a New South Wales Government move to address sunset clauses in off-the-plan sales.
Victor Dominello, NSW Minister for Innovation and Better Regulation, announced the government would be considering changes to the Conveyancing Act 1919.
The changes would allow only the purchaser to rescind off-the-plan contracts.
The government would also seek to compel a vendor who terminates a contract under a sunset clause, and resells the same unit, to pay damages to the original purchaser equal to the difference on the sale price between the two contracts.
Malcolm Gunning, president of the Real Estate Institute of NSW, says changes are needed to protect buyers.
“The current legislation is allowing developers to take advantage of a fast moving property market that has exceeded expectations in recent times.”
Gunning says the issue needs to be addressed and laws changed.
“Purchasing a property is a huge commitment and sunset clauses in their current form can see consumers exploited.
“We applaud the government for their proactive response to this issue.”