An Act to amend the Conveyancing Act 1919 to prevent a developer from unreasonably rescinding an off the plan contract for a residential lot under a sunset clause.
This Act is the Conveyancing Amendment (Sunset Clauses) Act 2015.
This Act commences on the date of assent to this Act.
Omit “and 9” from section 52 (2). Insert instead “, 9 and 10”.
Insert after Division 9:
In this section:
For the purposes of this section, a lot is created when the plan creating the lot becomes a registered plan.
A vendor may rescind an off the plan contract under a sunset clause if the subject lot has not been created by the sunset date, but only if:
(a) each purchaser under the contract, at any time after being served with the notice under subsection (4), consents in writing to the rescission, or
(b) the vendor has obtained an order of the Supreme Court under this section permitting the vendor to rescind the contract under the sunset clause, or
(c) the regulations otherwise permit the vendor to rescind the contract under the sunset clause.
It is a term of an off the plan contract that a vendor who is proposing to rescind the contract under a sunset clause must serve each purchaser under the contract notice in writing at least 28 days before the proposed rescission that specifies why the vendor is proposing to rescind the contract and the reason for the delay in creating the subject lot.
A sunset clause cannot automatically rescind an off the plan contract and, if it purports to do so, it is to be read as if it instead permits the contract to be rescinded on or after the sunset date in accordance with this section.
The Supreme Court may on the application of a vendor under an off the plan contract make an order permitting the vendor to rescind the contract under a sunset clause but only if the vendor satisfies the Court that making…