As part of legislative review in light of the Government’s commitment to reduce red tape in NSW and remove unnecessary legislation, Land and Property Information is considering the repeal of the Land Sales Act 1964 (‘the Act’). Stakeholder feedback is sought on repeal of the Act.
The Act regulates the sale of land under ‘instalment contracts’, being:
- A contract for the sale of a lot in a subdivision of 5 or more lots, where the contract provides for payment of the purchase by four or more instalments.
- An option to purchase such a lot where the consideration is payable by four or more instalments.
The Act prohibits the selling (as defined in the Act) under an instalment contract unless the subdivision complies with the Act. There are several requirements set out in the Act for the form of, and operation under, such contracts.
The Act was introduced in 1964 to address problems encountered with instalment or ‘terms contracts’ at that time, under which the purchaser would not become the registered proprietor of the land until the final instalment was paid. That model posed significant risks to purchasers. By not having any title to the land until the last payment, purchasers in some developments lost all of their money and the land which they were paying off, where the vendor went bankrupt or where there was money owing to a bank and the bank sold the land. The Act was introduced to provide protective measures for purchasers and regulate sales under such contracts.
In today’s market, however, it is understood that instalment contracts are rare and the problem which the Act was enacted to address is no longer prevalent. Continuing regulation of ‘instalment contracts’ may no longer be warranted. To remove unnecessary legislation and regulatory burden, it is considered that the Act could be repealed. Submissions/comments are sought on repeal.
How to make a submission
If you would like to provide submissions on the repeal of the Land Sales Act 1964, please forward your submissions by 5pm on 11 September 2015 to email@example.com
Where you consider that the Act should be retained, reasons for the retention and/or examples/evidence-based arguments to support that view would be of assistance.
Land and Property Information will review all submissions.
Submissions may be made publicly available. Please clearly identify in your submission if you do not wish for your personal information or parts of your submission to be made public/released and provide the reasons for same. Please note, however, that there may still be situations where the information is required by law to be released or disclosed, including where required by the Government Information (Public Access) Act 2009.