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CONVEYANCING (SALE OF LAND) AMENDMENT BILL 1990
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The Auctioneers and Agents (Sale of Land) Amendment Bill 1989 is cognate with
this Bill.
The objects of this Bill are to amend the Conveyancing Act 1919 in relation to the
sale of residential property, by omitting Division 8 of Part 4 and substituting new
Divisions 8 and 9, and to make other consequential or machinery amendments.
The new Division 8 deals with the sale of residential property by contract, and:
continues the requirement for the contract to be available for inspection as
soon as residential property is advertised (failure to do this is an offence)
- proposed section 66R, and
provides a cooling off period of 5 business days (with some exceptions),
during which the purchaser may rescind the contract - proposed sections
66S, 66T and 66U; and
requires the purchaser to forfeit 0.25 per cent of the purchase price of the
property on rescinding the contract, unless the vendor waives this forfeiture
- proposed section 66V; and
provides for the cooling off period to be shortened or waived, but only if the
purchaser gives the vendor a certificate signed by a lawyer - proposed
sections 66S, 66T and 66W, and
requires a statement relating to the cooling off period to be included in the
contract (on pain of rescission without forfeiture) - proposed section 66X.
The new Division 9 deals with options to purchase residential property, and:
(a) requires such an option to include terms, conditions and warrantics
prescribed by regulations (similar to the vendor disclosure and warranty
provisions of section 52A of the Principal Act) - proposed section 66ZA;
and
* Amended in committee - see table at end of volume.
Conveyancing (Sale of Land) Amendment 1989
provides a cooling off period running from the grant of the option and
ending 5 business days after the option is granted (with some exceptions),
during which the purchaser may rescind the option - proposed sections
66ZB, 66ZC and 66ZD; and
requires the purchaser to forfeit 0.25 per cent of the purchase price of the
property on rescinding the option, unless the vendor waives this forfeiture
- proposed section 66ZE; and
provides for the cooling off period to be shortened or waived, but only if the
purchaser gives the vendor a certificate signed by a lawyer - proposed
sections GGZB, 66ZC and 66ZF; and
provides that the option is void if it is not signed by both parties or if it is
exercisable within 42 days - proposed section 66ZG; and
requires a statement relating to the cooling off period to be included in the
option (on pain of rescission without forfeiture) - proposed section 66ZH;
and
requires the option to be accompanied by the proposed contract for the sale
of the property (on gain of rescission without forfeiture) - proposed section
66ZI.
For the purposes of each of the Divisions, residential property is defined as land
containing not more than two places of residence (and no other improvements),
vacant land on which the construction of a single place of residence alone is not
prohibited, or a strata lot comprising a single place of residence alone, but excluding
land or a strata lot used wholly for non residential purposes or land that is more than
2.5 hectares in area.
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides for the proposed Act to commence on a proclaimed day.
Clauses 3 and 4 are formal provisions giving effect to the Schedules of
amendments.
SCHEDULE 1 - AMENDMENT OF CONVEYANCING ACT 1919
Schedule 1 (1) makes a consequential amendment to section 6, to include a
reference to the regulations made under proposed section 66ZA, so that those
regulations (together with similar regulations under section 52A also relating to
vendor disclosure and warranties) will be able to affect certain other Acts mentioned
in section 6.
Schedule 1 (2) makes a machinery amendment to section 52, to include a reference
to the new Divisions being inserted by the Bill, so that they apply to land under the
Real Property Act 1900. This is contemplated by section G of the Principal Act.
Schedule 1 (3) inserts new Divisions 8 and 9 into Part 4 (in substitution for the
existing Division 8). The effect of the new Divisions is as described above.
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1920
Schedule 2 makes a consequential amendment to the Second Schedule to the
Stamp Duties Act 1920, by omitting paragraph (33) of the General Exemptions from
Stamp Duty. That paragraph provides for the exemption of "A preliminary
agreement under section 66Q of the Conveyancing Act 1919". This omission is
consequential on the omission by the Bill of the provisions of the Conveyancing Act
1919 relating to preliminary agreements.
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