Developers must give owners buying off the plan a disclosure statement as a part of the contract. This document provides greater information at the point of sale about proposed levies, maintenance and mixed uses throughout the building as well as information regarding the development and its progress. Developers also need to provide update statements to notify buyers of any significant changes to the development, including registration of the units plan and any material changes made since the contract was signed.
These extra steps provide buyers with the information they need to rescind a contract if the unit or units plan is not as described. Previously, there was no requirements for a developer to disclose any changes that occurred during construction, and buyers were not always aware of these changes, which could sometimes be substantial, until just prior to settlement. These new requirements give buyers clearer rights to terminate a contract of sale where the end result (i.e. what is actually built) is significantly different to the plan they bought off. The optional disclosure statement template [118.8 KB] may be used for this purpose.
Owners buying within an existing units plan will receive more information about their unit and units plans in general through improvements to the unit title certificate, also known as a section 119 certificate. The certificate includes more details about all funds held by the owners corporation, any sustainability infrastructure built on the units plan, and current insurances, warranties and contracts the owners corporation has entered into. Find out what a unit title certificate must include in the Unit Titles (Management) Certificate Determination 2023.
Also, just before settlement, buyers can request an updated unit title certificate to make sure they are informed of any changes that may have occurred since contracts were exchanged. Buyers should receive any updated information like contributions or insurance that may have changed since the certificate was first issued. Buyers should talk to their solicitors to help secure this updated certificate before settlement. A template for an update certificate [173.9 KB]is available. This template is not compulsory, please refer to the template for further information.
Owners corporations may charge a fee for a request for a unit title certificate or an update certificate. Find out the fees for a unit title certificate and update certificate in the Unit Titles (Management) (Fees) Determination 2023.
Advertising requirements for the sale or lease of a residential property have also changed to include information if the premises is an adaptable housing dwelling. This information helps those people looking for a premise with adaptable housing facilities to identify from advertising whether the premise may be suitable for their needs.
To help owners corporations understand and manage the building and its facilities, from 1 July 2021 developers need to present an initial maintenance schedule for a new complex at the owners corporation's first annual general meeting. The plan needs to detail the expected maintenance tasks and costs and include an asset register, warranties, manuals and contact details for manufacturers and installers. Previously, no such requirement existed, leaving owners and buyers in the dark about ongoing maintenance for these items and their estimated running costs.
