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The ACT’s 2021 off-the-plan sales reforms have improved buyer confidence, according to a recent review.
In late 2021, the ACT government stepped up sunset clause protections following “a concerning number of complaints” about off-the-plan sellers who had cancelled contracts without good cause.
Under the reforms, developers must obtain either the buyer’s consent or a Supreme Court order before they can cancel a contract under a delay-event clause.
In a recent review of the Civil Law (Sale of Residential Property) Act 2003, the territory government confirmed that the reforms have made a positive difference in the market.
“Buying a home can be a daunting and complex process in itself; buyers shouldn’t need to contend with unfair contract cancellations as well,” said Attorney-General Shane Rattenbury.
“This review shows our 2021 reforms are making a real difference by improving the fairness and transparency in the market. We’ve listened to the community, and we’re pleased to see these reforms have delivered increased protections for home buyers,” he said.
In particular, the review discovered that the reforms led to a decrease in the number of rescissions overall, reducing the number of times contracts have been cancelled and increasing certainty for off-the-plan buyers.
The review also found that both consumers and industry stakeholders agree that the changes have improved protections for buyers.
Looking forward, the ACT government reported that there is “a desire for further protections, including enhanced pre-settlement inspections and clearer communication about delays”.
“We value the feedback we’ve received from the community and will continue to monitor the effectiveness of these reforms,” said Rattenbury.
“We’re also exploring additional measures to further strengthen consumer protections and ensure a fair playing field for both buyers and sellers,” he said.
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