Amendments to conveyancing and planning regulations in NSW, effective from 1 October 2022, have the effect of placing some vendors who currently exchange contracts for sale of land at risk of the purchaser having the right to rescind the contract up to the date of completion of the sale.
This is because one of the amendments is to the requirement for the planning certificate to be attached to a contract before exchange. Legislation in NSW requires a planning certificate to be attached to a contract before exchange and contains a warranty in favour of a purchaser that the planning certificate discloses the status of the land in relation to the matters set out in the planning regulations. Planning regulations effective 1 October 2022 have amended what the planning certificate is required to contain and, currently, a few Councils (which issue the planning certificates) are not in a position to issue complying planning certificates. Exchange of a contract with a non-complying planning certificate resulting in a breach of the warranty mentioned gives a purchaser a right to rescind the contract up to the date of completion of the sale except in limited circumstances.
If you have questions regarding the amendments to legislation or the validity of your Council’s planning certificates, contact one of our property, planning and development lawyers today.
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