Conveyancing (Sale of Land) Regulation 2022

The Regulation operates within the framework of the Conveyancing Act 1919, and several key concepts run throughout its provisions. The term “the Act” is defined in Schedule 6 as the Conveyancing Act 1919. “Off the plan contract” has the same meaning as in Part 4, Division 10 of the Act - essentially a contract for the sale of a lot in a proposed plan of subdivision or a lot in a strata plan that is not yet registered, or within 12 months of registration where occupation certificate requirements apply. “Prescribed documents” means the documents listed in Schedule 1, Part 1 that must be attached to a contract under section 4 of the Regulation. These include a planning certificate (unless the land is not in a local government area), diagrams from a recognised sewerage authority showing sewer lines and infrastructure, a property certificate and plan for Torrens title land, deeds and instruments creating easements, profits à prendre, restrictions on use or positive covenants, and a range of documents specific to strata schemes, community schemes, precinct schemes, neighbourhood schemes, development schemes, building management statements, swimming pool compliance certificates, and the prescribed warning notices about smoke alarms and loose-fill asbestos insulation. For off the plan contracts, Part 2 of Schedule 1 adds documents such as a proposed schedule of finishes, section 88B instruments, draft by-laws, draft management statements, draft strata development contracts, and draft building management statements.

The concept of “adverse affectation” is central to the warranties in Schedule 2. Part 3 of Schedule 2 lists the specific adverse affectations: proposals by Transport Asset Holding Entity, Sydney Metro, Sydney Trains or Transport for NSW for road or railway realignment; proposals to acquire land for schools; proposals by energy distributors or electricity network operators; heritage listings and orders; proposals under the Pipelines Act 1967; proposals by the Land and Housing Corporation; boundary or encroachment disputes; certain environmental and building orders; building product rectification orders; affected building notices under the Building Products (Safety) Act 2017; building work rectification orders under the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020; claims about positive covenants; strata renewal proposal resolutions; lease breach notices; rights of way under the Mining Act 1992; water licences; stock disease and chemical residue instruments; soil conservation notices; native vegetation directions; tree dispute applications and orders; coastal protection orders; biosecurity emergency orders, control orders, biosecurity directions and undertakings; mandatory code compliant certificates for set aside areas; and remediation orders under the Biodiversity Conservation Act 2016.

The “implied terms” in Schedule 3 include terms about objections and requisitions for encroachments, land tax certificates, compensation for changes in off the plan contracts, determination of compensation claims, settlement of compensation, occupation certificates for strata units bought off the plan, and occupation certificates for land and house packages. The “current land tax certificate” is defined in Schedule 6 as a certificate issued under the Land Tax Management Act 1956 section 47 in the year of completion or within 3 months before service, relating to the land or the land from which lots are to be created.

“Cooling off period” is a right to rescind under Part 4, Division 8 of the Act, and the Regulation prescribes the statement that must be included in any contract for residential property (Form 1 in Schedule 5) and in any option (Form 2). The cooling off period is 10 business days for off the plan contracts and 5 business days otherwise, but does not apply if the purchaser gives a section 66W certificate, if sold by auction, if passed in on the same day, or if the contract arises from exercise of an option (except an option void under section 66ZG). Rescission during the cooling off period forfeits 0.25% of the purchase price.

The Regulation primarily affects vendors and purchasers of land in New South Wales, but its reach extends to a wide range of professionals and entities. Vendors - including developers, builders, investors, and private sellers - must ensure that every contract for the sale of land (unless exempt) has the prescribed documents attached from Schedule 1 Part 1, includes the prescribed warranty from Schedule 2 Part 1, and incorporates the prescribed implied terms from Schedule 3. For off the plan contracts, vendors must also prepare and attach a disclosure statement containing the information required by sections 12 and 13, including draft plans, draft management statements and other documents from Schedule 1 Part 2. Purchasers gain statutory rights to rescind or claim compensation if the vendor fails to comply. Conveyancers and solicitors advising either side must know the precise document list for each type of land (Torrens title, strata, community, etc.) and the specific timing requirements for serving land tax certificates and occupation certificates. Real estate agents who prepare or facilitate contracts must be aware of the cooling off statement requirements and that the statement must be clearly legible and prominently located (sections 16(2) and 20(2)). Mortgagees exercising a power of sale are not exempt from the document and warranty requirements for contracts relating to an estate or interest in a mortgage (see section 15(2)), except that certain exemptions in Schedule 4 Parts 1 and 5 apply - but section 15(2) specifically removes the exemption for contracts for sale by a mortgagee or for sale of the equity of redemption. Similarly, for cooling off under section 17(2) and options under section 19(2), mortgagees exercising a power of sale are not exempt from Division 8 or Division 9 of the Act. The Regulation also prescribes certain bodies as “recognised sewerage authority” and adds specific entities into the list in section 14: Sydney Water Corporation, Hunter Water Corporation, East Australian Pipeline Pty Limited, and Jemena Gas Networks (NSW) Ltd - these are relevant to the warranty that the land does not contain part of a sewer belonging to a recognised sewerage authority and to the document requirement for diagrams from a recognised sewerage authority. Lessors and lessees in leasehold strata schemes are affected by the prescribed documents and the warranty regarding lease breaches (adverse affectation item 23). Owners corporations and strata committees are touched by the requirement to include by-laws, strata plans, and strata development contracts. Local councils are involved through planning certificates and swimming pool certificates. The Secretary of the Department of Customer Service has a role in appointing arbitrators for compensation claims under off the plan contracts (Schedule 3, section 5(3)). The Regulation also affects options: grantors and grantees of options to purchase land must comply with the implied warranty in section 18 and Schedule 2 Part 2, and include the cooling off statement from Form 2. Exemptions in Schedule 4 Parts 4 and 5 apply to certain options, for example options contained in a will or lease.

The Regulation imposes a range of duties on vendors and grants corresponding rights to purchasers. The primary duty is under section 4: the vendor must attach the documents listed in Schedule 1 Part 1 to the contract for sale. This includes a planning certificate, sewage diagrams, property certificate and plan for Torrens title land, instruments creating easements etc., strata documents, community scheme documents, swimming pool compliance documents, and the prescribed warning notices. The duty can be satisfied by attaching copies (section 3(2)). For off the plan contracts, section 13 prescribes additional documents that must be included in a disclosure statement: the documents in Schedule 1 Part 2, including if proposed, a schedule of finishes, section 88B instruments, draft by-laws, draft management statements, draft strata development contracts, and draft building management statements. The disclosure statement may be satisfied by attaching the documents to the contract (section 13(2)). Section 6 provides exceptions: the Division does not apply to a contract listed in Schedule 4 item 9 (contracts arising from an option where the proposed contract and prescribed documents were attached to the option), and the warning notice in Schedule 1 item 16 need not be attached if it is printed in the contract.

The vendor gives a prescribed warranty under section 5 and Schedule 2 Part 1. The warranty is that as at the date of the contract and except as disclosed: the land is not subject to an adverse affectation; it does not contain part of a sewer belonging to a recognised sewerage authority; the planning certificate specifies the status of the land per the Environmental Planning and Assessment Regulation 2021 Schedule 2; there is no matter justifying an upgrading or demolition order (or a building information certificate has been issued since that matter arose); no charge is payable under section 88F of the Act for a positive covenant; and the land is not subject to an annual charge for coastal protection services under the Local Government Act 1993. The warranty can be disclosed by attaching documents describing the adverse affectation, or instruments, or Gazette pages (Schedule 2 Part 1 clause 2). For options, section 18 prescribes the same warranty (Schedule 2 Part 2) provided the proposed contract and prescribed documents are attached to the option.

Implied terms are prescribed in Schedule 3. Section 7 prescribes the term in Schedule 3 section 1 relating to objections and requisitions for encroachments: nothing in the contract prevents the purchaser from making an objection about encroachments, unless the encroachment is disclosed and clearly described and the contract expressly precludes objection. Sections 8 prescribes land tax certificate terms: if completion is 14 days or less after the contract, the vendor must serve a current land tax certificate on the day the contract is made (Schedule 3 section 2); if more than 14 days, the vendor must serve the certificate at least 14 days before completion (Schedule 3 section 3). Section 9 prescribes terms for all off the plan contracts: the terms in Schedule 3 sections 4 to 6 give the purchaser a right to claim compensation of up to 2% of the purchase price instead of rescinding under sections 66ZO or 66ZP of the Act, with detailed procedures for claim notices, arbitration, and settlement. Section 10 prescribes an additional term for strata lots bought off the plan: the vendor must serve an occupation certificate at least 14 days before completion (Schedule 3 section 7). Section 11 prescribes a similar term for land and house packages (Schedule 3 section 8).

The purchaser’s right to rescind is set out in section 21. For contracts, the purchaser may rescind for failure to attach prescribed documents, failure to attach a disclosure statement for off the plan contracts, or breach of the prescribed warranty. For options, rescission is available for breach of the prescribed warranty. The right is conditional: the breach must constitute failure to disclose a matter affecting the land, the purchaser must have been unaware of the matter, and the purchaser would not have entered into the contract or option had the purchaser been aware. Additionally, for breach of the warranty about upgrading or demolition orders, a building information certificate must not have been issued since the contract or option. Section 22 sets the time limits: for failure to attach documents or disclosure statement, within 14 days after the contract is made (unless completed); for breach of warranty, before completion; for an option, before the earlier of exercise or expiry. Notice must be in writing and can be served under section 170 of the Act or contract provisions. Section 23 sets the effect: rescission is ab initio - the contract is rescinded from the time it was made, and the option from the time granted. The vendor must refund the deposit and any other money paid. No damages, costs or expenses are payable, except liability under other terms or warranties, adjustments if purchaser took possession, or reimbursement for expenses incurred in complying with orders.

The cooling off period: for residential property contracts, the purchaser may rescind within 5 business days (10 for off the plan) by giving notice, forfeiting 0.25% of the purchase price (Schedule 5 Form 1). The prescribed statement must be included in the contract. For options, the same cooling off right applies (Form 2). Section 17 and 19 list exemptions: for example, if the purchaser gives a certificate under section 66W or 66ZF, if sold by auction, or if the contract arises from an option where the proposed contract and prescribed documents were attached (except options void under section 66ZG).

The Regulation itself does not create criminal penalties or fines. Its enforcement mechanism is primarily through the purchaser’s statutory right to rescind the contract or option, and to claim compensation in the case of off the plan contracts. Section 21 of the Regulation, read with sections 52A(6) and 66ZA(2) of the Act, gives the purchaser a right to rescind if the vendor fails to attach the prescribed documents or breaches the prescribed warranty. This is a potent remedy because rescission is retrospective: the contract is treated as if it never existed, and the vendor must refund all money paid (section 23(1)(a) and (2)). The vendor cannot retain any deposit or other sums, except the forfeited 0.25% if the purchaser rescinds during the cooling off period. Furthermore, the vendor is not liable for damages or costs from the rescission itself, but that does not affect liability for breach of other terms or warranties in the contract (section 23(5)). Therefore, if the vendor’s failure also amounts to a breach of another contractual term, the purchaser may have additional claims for damages.

For off the plan contracts, Schedule 3 sections 4 to 6 provide an alternative remedy of compensation of up to 2% of the purchase price if the purchaser chooses not to rescind. That compensation regime has its own enforcement mechanics: if the parties cannot agree within one month of the claim notice, an arbitrator must be appointed; the arbitrator’s decision is final; the compensation amount is settled as an adjustment on completion or held by the deposit holder if not finalised. Failure to appoint an arbitrator leads to withdrawal of the claim.

There are also indirect consequences: if a vendor fails to attach the required documents, the purchaser’s solicitor is likely to advise the purchaser not to complete, and the vendor may face delay or loss of sale. In practice, the Regulation is enforced through conveyancing practice: contracts that do not comply are often identified by the purchaser’s solicitor before exchange, leading to renegotiation or non-completion. However, the Regulation does not state that a contract is void for non-compliance - rather it gives the purchaser the election to rescind. That election must be exercised within time limits or the right is lost. The Regulation also provides that non-compliance with the form of the cooling off statement does not invalidate the contract if the contract includes an earlier version of the form during the transitional period (section 28(2)). The cooling off statement must be clearly legible and prominently located (sections 16(2) and 20(2)), but the Regulation does not prescribe a penalty for failure - again, the remedy is the purchaser’s right to rescind during the cooling off period (which exists regardless of whether the statement is present).

The Regulation interacts with other legislation that does impose penalties. For example, the Environmental Planning and Assessment Act 1979 creates offences for non-compliance with orders listed in the Schedule 2 warranty, and the Swimming Pools Act 1992 creates offences for non-compliance with pool barrier requirements. The Regulation does not directly enforce those regimes but uses them as triggers for the warranty and document requirements.

The Regulation sits under the Conveyancing Act 1919 and gives effect to several of its provisions, particularly sections 52A (vendor disclosure), 66ZA (warranties in options), 66X and 66ZH (cooling off statements), 66ZM (off the plan disclosure statements), 66ZL (material particulars), and 66ZO/66ZP (purchaser’s rights in off the plan contracts). The Regulation is cross-referenced extensively to other NSW statutes and regulations. The dictionary in Schedule 6 imports definitions from: the Real Property Act 1900 (for computer folio certificate, folio); the Strata Schemes Development Act 2015 (for common property, freehold/leasehold strata scheme, strata development contract, strata management statement, strata plan, development scheme); the Strata Schemes Management Act 2015 (for strata scheme); the Community Land Development Act 2021 (for community plan, community scheme, development contract, management statement, neighbourhood plan/precinct plan, association property); the Environmental Planning and Assessment Act 1979 (for building information certificate, occupation certificate, planning certificate); the Land Tax Management Act 1956 (for current land tax certificate); the Local Government Act 1993 (for section 603 certificate); the Home Building Act 1989 (for loose-fill asbestos insulation references); and the Crown Land Management Act 2016 (for Crown land).

Specific provisions reference the Environmental Planning and Assessment Regulation 2021 for the content of planning certificates (Schedule 2 warranty refers to Schedule 2 of that Regulation) and for the definition of planning certificate (Schedule 6 excludes certificates referred to in section 290(2) of that Regulation). The Regulation also interacts with the Swimming Pools Act 1992 and Swimming Pools Regulation 2018 for swimming pool compliance certificates, the Pipeline Act 1967, the Heritage Act 1977, the Biosecurity Act 2015, the Biodiversity Conservation Act 2016, the Building Products (Safety) Act 2017, the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020, the Dividing Fences Act 1991, the Access to Neighbouring Land Act 2000, the Trees (Disputes Between Neighbours) Act 2006, and many others as listed in the adverse affectations in Schedule 2 Part 3.

The Regulation interacts with the Real Property Act 1900 in several ways: prescribed documents include property certificates and plans issued by the Registrar-General, and for draft plans and disclosure statements, substantial compliance with lodgment rules under that Act is sufficient (sections 12(3) and 13(4)). The Regulation also interacts with the Community Land Development Act 2021 for community, precinct and neighbourhood schemes, requiring location plans and other documents. For strata schemes, the Regulation requires strata plans, by-laws, strata management statements, and strata development contracts as relevant.

The Regulation’s exemptions in Schedule 4 are key to understanding how it interacts with other laws. For example, contracts for the sale of land to Transport for NSW for road purposes are exempt from the document and warranty requirements (Schedule 4 Part 1 item 3). Contracts arising from options in wills or leases are exempt from cooling off (Schedule 4 Part 3 item 11). Options contained in a will or lease are exempt from the option provisions (Schedule 4 Part 4 item 14). Additionally, Part 5 of Schedule 4 exempts certain estates or interests such as mortgages, easements, permissive occupancies, profits à prendre, and most leases (except long leases, Crown leases over 5 years, perpetual Crown leases, and leasehold strata lots) from the operation of the document and warranty requirements, cooling off, and option provisions.

The Regulation also has a transitional interaction: section 26 provides that acts done under the 2017 Regulation continue to have effect, and acts done during the transitional period (to 28 Feb 2023) that complied with the 2017 Regulation are taken to comply with this Regulation. Section 27 temporarily refers to the old Environmental Planning and Assessment Regulation 2000 for planning certificates until 30 Sep 2022. Section 28 allows use of previous forms of the cooling off statements until 31 May 2026.

The Regulation was made on 22 July 2022 and commenced on 1 September 2022, as stated in sections 1 and 2. It replaced the Conveyancing (Sale of Land) Regulation 2017, which was repealed on 1 September 2022 under section 10(2) of the Subordinate Legislation Act 1989. The Regulation has been amended once by an amending instrument identified as 2025 No 50, Schedule 3. The amendment history is noted in the text at various points: section 17 (cooling off exemptions) was amended by 2025 No 50, Sch 3[1]; the heading of Part 4 was amended by Sch 3[2]; sections 19, 21 and 23 were amended by Sch 3[3]; section 28 (transitional provision for forms) was inserted by Sch 3[4]; Schedule 4 (exempt contracts, options and land) was amended by Sch 3[5]; Schedule 5 (forms) was amended by Sch 3[6] and [7]; and Schedule 6 (dictionary) was amended by Sch 3[8] and [9]. The specific content of these amendments is not detailed in the text, but we know from the note to section 17(3) that it was repealed, and the transitional provision for forms in section 28 was inserted. The amendments appear to be relatively minor, likely updating cross-references or responding to changes in other legislation. The Regulation itself is relatively recent and has not undergone major structural changes. The 2025 amendments are in force as of the date of the text provided. The Regulation also contains internal transitional provisions for its own commencement: section 26 provides that acts under the 2017 Regulation continue to have effect, and acts done during the transitional period (1 Sep 2022 to 28 Feb 2023) are taken to comply with the 2022 Regulation if they complied with the 2017 Regulation. Section 27 provides a temporary reference to the old Environmental Planning and Assessment Regulation 2000 for planning certificates for September 2022. Section 28 allows the use of previous versions of the cooling off forms in Schedule 5 until 31 May 2026.

The Regulation itself does not cite any case law, and there is no reference to litigation within its text. As a relatively new instrument (in force from 1 September 2022, with one set of amendments in 2025), there is unlikely to be a substantial body of decided cases interpreting its specific provisions. However, the provisions it prescribes - such as the implied warranty in Schedule 2 and the implied terms in Schedule 3 - have been the subject of litigation under the predecessor regulation. The warranty regarding “adverse affectations” and the requirement to attach documents have been central to disputes where purchasers seek to rescind after discovering undisclosed matters such as proposed road widenings, heritage orders, or sewer lines. The courts have considered the meaning of “adverse affectation” and the sufficiency of disclosure. Similarly, the term “upgrading or demolition order” (defined in Schedule 2 Part 1 clause 4(c)) has been litigated. The definition of “material particular” for off the plan contracts (section 24) and the exclusion of certain changes (e.g., lot number or street name changes) may also be the subject of disputes. The requirement that a draft plan need not include the location or area of a parking or storage area (section 12(2)) could give rise to arguments about whether a change in parking allocation is a material particular. The exemption for contracts arising from options where the proposed contract and prescribed documents are attached (Schedule 4 item 9) has been examined in the context of whether the attachment was sufficient. The cooling off provisions, particularly the 0.25% forfeiture, have been considered in cases where a purchaser rescinds without proper notice. Because the Regulation is subordinate legislation that gives effect to the Act, most litigation focuses on whether the vendor complied with the prescribed requirements. Practitioners should be aware that the courts interpret the disclosure obligations strictly against vendors, given the protective purpose of Part 4 of the Act. However, without specific cases cited in the source, we cannot name any.

Several provisions in the Regulation contain traps for the unwary. First, the implied term about objections and requisitions for encroachments (Schedule 3, section 1) provides that nothing in the contract can prevent the purchaser from making an objection about encroachments, unless two conditions are met: the encroachment must be “disclosed and clearly described in the contract”, and the contract must contain an express term precluding objection. A generic disclosure that there may be encroachments is unlikely to satisfy the “clearly described” test. The term expressly excludes dividing fences under the Dividing Fences Act 1991, so fence encroachments are not affected.

Second, the timing of the land tax certificate is critical. If the contract fixes completion within 14 days of the contract date, the vendor must serve the certificate on the day the contract is made (Schedule 3 section 2). If completion is more than 14 days away or no date agreed, the certificate must be served at least 14 days before completion (section 3). The purchaser does not have to complete until the certificate is served. Failure to serve in time delays completion and may cause the vendor to be in default. The certificate must be “current” - issued in the year of completion or within 3 months before service (Schedule 6 definition).

Third, for off the plan strata units, the vendor must serve an occupation certificate at least 14 days before completion (Schedule 3 section 7). This applies unless the contract expressly provides that the parties agree an occupation certificate will not be issued before completion and that occupation will not commence before issuance (section 10(d)). If the contract does not contain that express agreement, the vendor cannot force completion without serving the occupation certificate. The definition of occupation certificate includes interim and final certificates (section 7(3)).

Fourth, the compensation regime for off the plan contracts (Schedule 3 sections 4-6) has specific procedural steps. The purchaser must serve a claim notice within 14 days of receiving the notice of changes or registered plan (section 4(2)). The claim notice must specify the amount, the change, why the purchaser would not have entered into the contract, and how materially prejudiced (section 4(4)). If not resolved within one month, an arbitrator must be appointed; if no arbitrator within 2 months of claim notice or 1 month of completion, the Secretary may appoint one (section 5(2)-(3)). The arbitrator cannot award more than the claim amount (section 5(4)). If no arbitrator appointed within 4 months of claim notice or 3 months of completion, the claim is taken to be withdrawn (section 5(7)). After that, the purchaser cannot rescind either (section 5(5) says “the purchaser is no longer able to rescind”). So the purchaser must act quickly.

Fifth, the warranty about coastal protection charges (Schedule 2 Part 1 item 1(f)) is easily overlooked. The vendor warrants the land is not subject to an annual charge under section 496B of the Local Government Act 1993. If it is, the vendor must disclose it, possibly by attaching a section 603 certificate (Schedule 2 Part 1 clause 3). Failure to disclose gives the purchaser a right to rescind.

Sixth, the exemption for contracts arising from options (Schedule 4 items 8-10) is nuanced. Item 9 exempts a contract arising from exercise of an option if the proposed contract and prescribed documents were attached to the option. This means a vendor can avoid the document attachment requirement at the contract stage if they attached everything to the option. But careful: if the option is void under section 66ZG of the Act (e.g., not in writing or missing essential terms), the contract is not exempt (item 9 says “other than an option that is void under the Act, section 66ZG”).

Seventh, the definition of “off the plan contract” includes not only contracts entered into before registration of the strata plan, but also within 12 months after registration if an occupation certificate is required and the contract does not expressly provide otherwise (section 10). Practitioners selling newly registered units within that window must still comply with the disclosure statement and implied term requirements.

Eighth, the documents prescribed for disclosure statements do not need to include the provision for allocation of costs of shared expenses in a draft strata management statement or building management statement (section 13(3)). So if the vendor later adds cost allocations, that may be a material particular change triggering the right to rescind or claim compensation under section 66ZO/66ZP.

Ninth, the transitional provision for forms (section 28) allows the use of previous versions of the cooling off statements until 31 May 2026. But only for contracts and options entered into before that date. After that, the current forms must be used. Using an old form after the date may not invalidate the contract, but it is safer to use the current version.

Tenth, the purchaser’s right to rescind for breach of warranty is only available if the breach constitutes a failure to disclose a matter affecting the land, the purchaser was unaware, and the purchaser would not have entered into the contract or option (section 21(3)). So if the purchaser actually knew of the adverse affectation, or would have proceeded anyway, the right is lost. Also, for the warranty about upgrading or demolition orders, a further condition applies: a building information certificate must not have been issued since the date of the contract or option.

Compliance requires a systematic approach tailored to the type of land and the nature of the transaction. The first step is to identify whether the contract is for residential property, commercial land, off the plan strata, community scheme, or a land and house package. For any contract for the sale of land (unless exempt under Schedule 4), the vendor must ensure that all documents listed in Schedule 1 Part 1 are attached before the contract is made. This includes obtaining a planning certificate from the local council under section 10.7(2) of the Environmental Planning and Assessment Act 1979, diagrams from the relevant sewerage authority (if available in the ordinary course of administration), a property certificate and plan from the Registrar-General (for Torrens title land), copies of all deeds and instruments creating easements, profits à prendre, restrictions on use, or positive covenants that appear on the property certificate, and any documents specific to the type of land (strata plan and by-laws, community plan and management statement, swimming pool certificate if applicable, and the prescribed warning notices about smoke alarms and asbestos). The prescribed warranty in Schedule 2 Part 1 must be included in the contract. The vendor should review all disclosures to ensure that any adverse affectation listed in Schedule 2 Part 3 is either disclosed in the contract or addressed by one of the permitted disclosure methods (attaching a document describing the effect, an authority statement, the instrument, or the Gazette page). The implied terms from Schedule 3 must also be incorporated: the term about objections and requisitions (section 1), the appropriate land tax certificate term (section 2 or 3), and for off the plan contracts, the compensation terms (sections 4-6) and if applicable the occupation certificate term (sections 7 or 8). The contract must also include the cooling off statement in the prescribed form (Schedule 5 Form 1 for contracts, Form 2 for options), clearly legible and prominently located.

For off the plan contracts, additional steps are required. The vendor must prepare a disclosure statement that includes a draft plan meeting the requirements of section 12: proposed lot number, location, area, easements, restrictions, positive covenants, and for strata schemes the draft floor plan and location plan, and for community schemes the draft plans. The disclosure statement must also include the documents listed in Schedule 1 Part 2: proposed schedule of finishes, section 88B instruments, draft by-laws, draft management statements, draft strata development contract, draft strata management statement (if required), draft building management statement. The vendor must be aware that the draft plan does not need to show the location or area of parking or storage areas (section 12(2)), and documents do not need cost allocation provisions (section 13(3)). Substantial compliance with lodgment rules under the Real Property Act 1900 is sufficient.

For options, the grantor must attach the proposed contract and the prescribed documents to the option, and include the warranty in Schedule 2 Part 2 and the cooling off statement in Form 2. If the option is exercised, the resulting contract may be exempt from the document requirements if the option already had the prescribed documents attached (Schedule 4 item 9).

Timing is critical. The land tax certificate must be served on the day of the contract if completion is within 14 days, otherwise at least 14 days before completion. The occupation certificate (for strata off the plan or land and house packages) must be served at least 14 days before completion. The cooling off period runs for 5 business days (10 for off the plan) from the date of the contract or option, and the vendor should not complete within that period unless a waiver certificate is given.

Practitioners should keep a compliance checklist: (1) determine if any exemption applies (Schedule 4 Parts 1, 2, 3, 4, 5); (2) obtain and attach all Schedule 1 Part 1 documents; (3) include Schedule 2 Part 1 warranty; (4) include Schedule 3 implied terms; (5) for off the plan, prepare disclosure statement with Schedule 1 Part 2 documents; (6) include cooling off statement; (7) serve land tax certificate on time; (8) serve occupation certificate on time; (9) for options, attach proposed contract and prescribed documents; (10) record service of notices; (11) retain copies of all documents; (12) comply with transitional provisions if using old forms before 31 May 2026. Non-compliance exposes the vendor to rescission and refund obligations. The safest approach is to treat the prescribed documents and warranties as mandatory unless the contract clearly falls within a specific exemption.