The Victorian government passed a new regulation that (the new regulation) removes the developer’s ability to use the “Sunset Clause” to deliberately extend the duration and crush buyers. Under the Land Sale Act Amendment Act (Act) of 2019, developers can only exercise the “sunset clause” with the written consent of the buyer or (acquired) the approval of the Victorian Supreme Court.
The new regulations on the “Sunset Clause” will come into force on August 23, 2018 to ensure that any existing and future uncompleted/prospective contract (all) is protected.
The “sunset clause” can usually be found in the uncompleted/prospective contract. It allows developers to terminate a contract when the plan of subdivision cannot complete registration on a specific date. The new regulations protect buyers who are worried that the developer will deliberately delay the completion of the project (time) to terminate the signed contract under the “sunset clause” and then sell it at a higher price.
The bill will also:
• Strengthen existing requirements for sellers or real estate agents to disclose material realities about (sold) properties, and refine guidelines for determining what is significant (eg, whether the house was used as a private drug factory or has occurred Past history such as murder cases).
• It is forbidden to conduct a public auction before 1 pm on the anniversary of the ANZAC. Make the working hours of the real estate industry consistent with the standard working hours of the day.
• Give more protection to those who purchase the “Land Purchase Option” as part of the land reserve plan, including the funds escrowed by the trust to pay for the purchase of the option.
• Prohibit (use) special terms contracts and “pre-rent and buy” contracts, which are powerfully deterred by high fines and imprisonment for violating sellers and third-party intermediaries.
These (to the “sunset clause”) amendments performed a key result of the Consumer Property Law Review’s review of the 1962 Sale of Land Act 1962. The new regulations on the “sunset clause” will come into effect on August 23, 2018, and all other reforms in the amendment will be implemented by March 1, 2020 at the latest. We will continue to provide information for you as the changes take effect.
Https://www.consumer.vic.gov.au/latest-news/sale-of-land-amendment-act-2019-legislation-update