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Whether you’re purchasing a strata title as a residential property or as an investment property, it’s best you gain an understanding of the legal requirements regarding the contract and the disclosure statement.
When the contract is entered into, its provisions must include the disclosure statement and all material accompanying the disclosure statement. The buyer may rely on information in the disclosure statement to be up to date and accurate.
The buyer may terminate the contract if the disclosure statement is inaccurate or despite reasonable efforts by the buyer, the buyer has not been able to verify the information contained in the disclosure statement. The termination of the contract requires the buyer to give written notice to the seller within 14 days of the buyer receiving the contract.
(1) This section applies if –
(a) the seller is the original owner for the community titles scheme; and
(b) the buyer reasonably believes –
(i) the contribution schedule lot entitlements for the lots included in the scheme are inconsistent with the contribution schedule principle on which they were decided; and
(ii) the buyer would be materially prejudiced if compelled to complete the contract.
(2) Subject to subsection (3), the buyer may terminate the contract at any time before it settles by giving signed, dated notice of termination to the seller.
(3) The termination must happen not later than 30 days, or a longer period agreed between the buyer and seller, after the buyer’s copy of the contract is received by the buyer or a person acting for the buyer.
(4) The notice of termination must state that the contract is terminated under this section.
If the buyer terminates the contract under this part, the seller must repay to the buyer any amount paid to the seller towards the purchase of the lot the subject of the contract within 14 days after the termination.
(1) If the seller is the original owner, and the buyer gives the seller a power of attorney to act for the buyer, the power may be exercised only in ways, and only for purposes, disclosed in a written statement given to the buyer before the power is given.
(2) The statement must include a detailed description of the circumstances in which the power may be exercised.
(3) A power of attorney mentioned in subsection (1), unless it sooner expires, expires 1 year after it is given.
(1) This section applies to a contract entered into by a person (the seller) with another person (the buyer) for the sale to the buyer of a lot intended to come into existence as a lot included in a community titles scheme when the scheme is established or changed.
(2) The contract is taken to include a term (the deemed term) providing that, despite any other term of the contract, settlement must not take place earlier than 14 days after the seller gives advice to the buyer that the scheme has been established or changed.
(3) The deemed term has priority over any other term of the contract relating to settlement.
(4) Without limiting subsection (3), any notice the seller gives to the buyer is void to the extent it is inconsistent with the deemed term.
(1) This section applies to a contract entered into by a person with another person (the buyer) for the sale to the buyer of a lot intended to come into existence as a lot included in a community titles scheme when the scheme is established or changed.
(2) When the contract is entered into there must be a proposed community management statement for the scheme as established or changed.
(3) The buyer may terminate the contract if –
(a) there has been a contravention of subsection (2); and
(b) the contract has not already been settled.
If you find the process of the Sale of a Lot to be complex or confusing, call our friendly staff at Holland Searches – Varsity Lakes on 0481 258 182 and we’d be happy to answer your questions or arrange a free consultation.