Parliament passed the Sale of Land Amendment Bill 2019 (Vic) (Bill) on 28 May 2019. This Bill brings into effect retrospective legislation relating to sunset dates (also known as latest dates for registration) in the off-the-plan contracts of sale.

What does this mean?

  1. Vendor’s no longer have an automatic right to rescind an off-the-plan contract of sale under the sunset date clause.
  2. Vendor’s may only rescind an off-the-plan contract of sale under the sunset date clause if:
    1. the plan has not been registered by the sunset date; or
    2. an occupancy permit has not been issued by the sunset date.
  3. Vendor’s must obtain the purchaser’s consent to rescind under the sunset date clause.
  4. Vendor’s must give 28 day’s written to purchasers before the proposed rescission setting out:
    1. why the Vendor is proposing to rescind the contract; and
    2. reason for delay in registering the plan or obtaining an occupancy permit; and
    3. noting the purchaser is not obliged to consent to the proposed rescission.

A new section 10F is to be inserted into the Sale of Land Act 1962 setting out the information Vendors will be required to include in a sunset clause.

The amendments contained in the Bill will retrospectively apply to all off-the-plan contracts of sale entered into on and from 23 August 2018.

If you have questions about how the new legislation will affect you please contact Jen Severn at the contact details below.