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Retrospective changes to ‘off the plan’ sunset clauses passed in parliament30 May, 2019
The Sale of Land Amendment Bill 2019 (Vic) was passed in Parliament on 28 May — meaning the retrospective changes to off the plan sunset clauses will come into operation as soon as the bill receives royal assent.
The new requirements will prevent a vendor rescinding residential off the plan contracts based on a sunset clause without:
- at least 28 days’ written notice to purchaser
- a purchaser’s consent
The ‘notice’ and ‘consent’ provisions will apply to sunset clauses in all residential off the plan contracts with retrospective operation from 23 August 2018.
A sunset clause is a provision in a residential off the plan contract,that provides for the contract to be rescinded if the relevant plan of subdivision has not been registered, or occupancy permit has not been issued by the nominated sunset date. Sunset clauses in existing contracts purporting to provide for automatic rescission will be taken to be substituted by the new requirements.
LPLC has established a Sunset Clause Adviceline (+61 3 9672 3800) to support practitioners. On referralfrom LPLC,30 minutes free legal advice is available from external panel solicitors, for insured practitioners to risk manage the chance of potential claim exposures arising from the proposed retrospective changes to sunset clauses.
For more detailed information about these changes see our March 2019 bulletin Retrospective changes proposed for residential ‘off the plan’ sunset clauses back in parliament