New legislation introduced to State Parliament has been hailed win-win for property buyers and developers. The release of the Sale of Land Amendment Bill 2016 supports the timely release of new subdivided lots, providing better protection for buyers and investment opportunities for developers.
Terry Redman said currently, developers were able to offer land for sale without first obtaining relevant approvals and titles.
“This can be risky for the purchaser if finance for the development falls through or the developer is unscrupulous and absconds with the purchaser’s deposit”, he said.
The bill will address potential issues that buyers currently face when purchasing lots off the plan. Terry Redman said, “[sic] legal uncertainty has been detrimental to the property industry because developers have been constrained in their ability to deliver new projects and banks have been reluctant to lend money in these circumstances.”
“The amendments to the act will clearly state the obligations of developers and buyers when the developer is not the registered owner of the land at the time of sale,” Mr Redman said.
The amendments will include changes to the sales contracts to make buyers aware of the situation and will provide a deadline for the developer to become the registered owner of the lot. Deposits will also be secured in Australian trust accounts and will be refunded if the developer fails to meet the deadline.
(Source: Government of Western Australia media release, ‘New bill a win-win for property buyers and developers‘)
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