The New Off-The-Plan Contract Requirements in ACT

Off-the-Plan Purchases in the ACT: Key Disclosure Rules and Buyer Rights

The ACT has strengthened consumer protections for purchasers of off-the-plan properties through amendments to the Civil Law (Sale of Residential Property) Act 2003 (ACT) and related regulations. These reforms aim to provide greater transparency, improved disclosure and enhanced remedies for buyers.

Disclosure Statement

Before entering an off-the-plan contract, a developer must give a purchaser a Disclosure Statement including:

• a copy of the draft Crown lease plan showing:
  • the proposed unit number, unit entitlement and location;
  • any proposed easements;
  • any proposed restrictions on use.
• the draft Unit Title (Management) Statement for multi-unit developments.
• the draft Rules (equivalent to by-laws).
• any proposed development statement required under the Unit Titles Act 2001 (ACT).

Failure to provide compliant disclosure allows the purchaser to rescind.

Cooling-off Period

The ACT has a 5-business-day cooling-off period under the Civil Law (Sale of Residential Property) Act, applying to off-the-plan contracts unless waived.

Notification of Changes

Developers must disclose “significant variation”, including changes to:

• unit entitlements;
• the plan;
• common property arrangements;
• unit areas;
• easements or covenants;
• the management statement.

A variation is “significant” if it will adversely affect the purchaser. Buyers may rescind if materially disadvantaged.

Settlement Notice Period

Developers must give written notice and provide the registered plan and required documents before settlement can occur. A minimum notice period applies under ACT law or contract terms.

Rescission or Compensation

If a significant variation occurs, purchasers may:

• rescind the contract; or
• claim compensation where the contract provides for it.

Notice generally must be given within the timeframe specified in the legislation.

Deposit Requirements

Deposits must be held in a stakeholder or trust account and cannot be released to the developer until settlement, in accordance with the Agents Act 2003 (ACT).

Sunset Clause Protections

Sunset clauses are regulated. Developers cannot rescind simply because registration is delayed unless strict notice and consent requirements are met.

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