The Victorian State Government has recently announced delays to the commencement of two important pieces of legislation affecting property transactions in Victoria.
Delay 1: Commencement of national Personal Property Securities Register
We recently updated you about the new national Personal Property Securities Register that was due to commence on 31 October 2011.
The office of the Attorney-General has now announced that the PPS Register will not commence on 31 October 2011 but will come into effect in early 2012. A formal announcement confirming an actual commencement date is expected shortly.
Though the PPS Register will be a register for the recording of security interests against assets other than land, it has the potential to affect many standard property transactions including contracts of sale for land involving goods that are subject to security interests or leases for retail and commercial premises.
When the PPS Register commences, it will be particularly important for vendors of real estate to ensure that the contract they enter into adequately addresses any personal securities that may exist over goods transferred under the contract.
Delay 2: New warnings to purchasers in off-the-plan contracts of sale
The commencement of legislation requiring vendors under off-the-plan contracts of sale to provide new warnings to purchasers has also delayed.
The warnings, which are required pursuant to the Consumer Affairs Legislation Amendment (Reform) Act 2010 (Vic), must be published on the front page of all off-the-plan contracts of sale in Victoria giving notice to purchasers that:
- the purchaser may negotiate with the vendor about the amount of the deposit payable under the contract;
- a substantial period of time may elapse between the day of sale and the day on which the purchaser becomes the registered proprietor of the lot; and
- the value of the lot may change between the day of sale for that lot and the day on which the purchaser becomes the registered proprietor.
The Act originally called for the notices to be included in all contracts entered into after 1 September 2011. However, this date has been extended by the Consumer Acts Amendments Act 2011 (Vic) and now only contracts entered into after 30 June 2012 will require these warnings.
Keep checking the media section of the Robertson Hyetts website for further updates.
If you would like further information please contact Mark Donaldson.