Finally the state government has acted and last night introduced a Bill to simplify the contracts process for residential real estate. It’s not a massive change but it is a welcome one.
Currently a buyer must be given a warning statement before signing a contract and if the order of the documents isn’t spot on there can be a loophole to terminate. One famous case saw a judge deem a contract invalid because it had a clear plastic cover (the warning was not then the first page!).
Once the law’s through the warning will still be needed and it’ll have to be signed before the contract, but its position in the gigantic wad of paper won’t be regulated.
Jeremy Streten from lawyers Rostron Carlyle says it’s a welcome change. “These changes will greatly assist vendors and real estate agents who found it difficult to comply with the overly proscriptive requirements of the Act.” “Further the changes should ensure that developers are given comfort when commencing developments that a buyer will not find a technical breach of the Act to avoid the contract.”
We wrote last May that a simplification was on the cards and hopefully parliament will push this through. Of course the change won’t become law until October. Don’t want to rush these things…