Solicitors and conveyancers for vendors and developers need to be aware of the additional vendor disclosure obligations in force since 1 December 2019.
The changes have come into effect following the commencement of the Conveyancing Legislation Amendment Act 2018 and the Conveyancing (Sale of Land) Amendment Regulation 2019.
The amendments attempt to protect purchasers against detrimental and unforeseen changes made to a property they are purchasing in what is often a long period between signing a contract for sale and settlement.
The new obligations require additional documents to be attached to a contract for sale, and create a continuing obligation on vendors to notify the purchaser of key changes to their lot before completion.
It is essential that these additional obligations are met as purchasers may otherwise be granted the right to rescind the contract, and in some instances be able to seek compensation from the vendor.