Reminder: Cooling off warning notices from 2 June 2020
A new form of warning notice relating to cooling off periods in residential contracts was prescribed by the Conveyancing (Sale of Land) Regulation 2017 to reflect the extended 10 day cooling off period for off the plan contracts introduced late last year.
To assist conveyancing practitioners to adjust to the change, transitional provisions allowed contracts for established properties (i.e. not off-the-plan) to use the old form of warning notice for 6 months after commencement of the new requirement. This transitional period will end on 1 June 2020.
From 2 June 2020, all residential contracts for sale (whether for off-the-plan or established properties) will need to use the new form of warning notice relating to cooling off rights to comply with vendor disclosure requirements.
The Law Society of NSW has updated the standard form Contract for Sale of Land to include the new form of warning notice, which is prescribed by Schedule 5, Form 1 of the Conveyancing Sale of Land Regulation 2017.
Practitioners should ensure draft contracts are updated to comply with the new warning notice requirement.
For more information about changes to off-the-plan contracts, please see our off-the-plan page.
Note: Updated on 26 May 2020 to confirm transitional period ends on 1 June 2020.