What it does
The Conveyancing (Sale of Land) Regulation 2022 (NSW) is the subordinate instrument that gives operational detail to the vendor disclosure and purchaser protection provisions in Part 4, Divisions 8, 9 and 10 of the Conveyancing Act 1919 (the Act). It prescribes the documents that must be attached to a contract for the sale of land under section 52A(2)(a) of the Act, the warranties that are implied into contracts and options under sections 52A(2)(b) and 66ZA(1), and the additional terms that are implied into contracts under section 52A(2)(b). The Regulation also prescribes the information that must be included in a disclosure statement for off the plan contracts under section 66ZM(2), the content of the cooling off statement required for residential property contracts under section 66X(1) and for options under section 66ZH(1), and the circumstances in which a purchaser may rescind a contract or option for failure to attach prescribed documents or for breach of the prescribed warranty. It sets out the procedure for rescission and its financial consequences, including the vendor’s obligation to refund the deposit and any other money paid, and confirms that rescission does not render either party liable for damages or costs except in specific circumstances. The Regulation came into force on 1 September 2022, replacing the 2017 Regulation, and includes savings and transitional provisions for contracts and options entered into during a transitional period ending 28 February 2023. The text is structured in six parts: Part 1 contains definitions and commencement; Part 2 deals with contracts for sale and is divided into four Divisions covering documents and warranties, implied terms (including specific terms for land tax, off the plan contracts, strata units bought off the plan, and land and house packages), disclosure statements for off the plan contracts, and miscellaneous provisions including exemptions; Part 3 addresses cooling off periods for residential property; Part 4 deals with options, including an implied warranty and cooling off statement; Part 5 sets out purchasers’ remedies; Part 6 contains miscellaneous provisions including the definition of material particulars for off the plan contracts, savings, and transitional provisions. Six Schedules contain the detailed content: Schedule 1 lists the prescribed documents (Part 1 for contracts, Part 2 for disclosure statements); Schedule 2 contains the prescribed warranties (Part 1 for contracts, Part 2 for options) and the list of adverse affectations in Part 3; Schedule 3 sets out the prescribed terms (objections and requisitions, land tax certificates, compensation for off the plan changes, occupation certificate requirements); Schedule 4 lists exempt contracts, options and land; Schedule 5 contains the prescribed forms for cooling off statements; Schedule 6 is the dictionary.