2025 Changes to the Conveyancing Act and Real Property Act
The Conveyancing and Real Property Amendment Act 2025 received assent on 15 August 2025 and provisions have been commencing in phases. Some important and upcoming changes to be aware of include:
The Amendment Act expands the types of interest that can be released by way of a section 88B instrument lodged with a plan. Interests that will be able to be released under the Conveyancing Act are:
- a positive covenant for maintenance or repair (created under s 88BA)
- a public positive covenant
- a restriction on the use of land imposed by a prescribed authority under section 88D or s 88E
Commencement – this amendment has not yet commenced. It will commence on Monday 3 August 2026, after updates to NSW LRS processes - see the published commencement proclamation. Look out for additional guidance about the practical changes in the coming weeks.
Changes for options to compel a purchase and the associated definition of 'option' (discussed below), led to a small change to the prescribed form of cooling off notice set out in Schedule 5 to the Conveyancing (Sale of Land) Regulation, not only for option contracts but for all contracts for the sale of residential property.
- Commencement and transitional arrangements – the changes to the form of cooling off notices commenced on 15 August 2025, a transitional provision applies so that a contract or option exchanged on or before 31 May 2026 can include either the old or new form of cooling off notice: see section 28 Conveyancing (Sale of Land) Regulation.
- Contracts exchanged on and from 1 June 2026 must include the new form of cooling off notice prescribed by the amendments.
Note: the standard form Contract for the sale and purchase of land (2026 Edition) was updated in early 2026 to incorporate the new form of cooling off notice.
The vendor disclosure requirements and cooling off provisions that apply to an option to purchase residential property now also apply to options to compel a purchase (commonly known as 'put options'). This amendment resolved uncertainty around the application of the legislation to put options which was highlighted by the Supreme Court's decision in BP7 Pty Ltd v Gavancorp Pty Ltd [2021] NSWSC 265. Aspects to note about the amendment include:
- Division 9 of the Conveyancing Act 1919 - has been amended so that cooling off rights, plus the terms, conditions and warranties prescribed by the Conveyancing (Sale of Land) Regulation apply generally to options. A new definition of 'option' includes both:
- an option to purchase residential property, and
- an option to compel the purchase of residential property.
- No cooling off period for certain contracts - section 66T (d) of the Conveyancing Act 1919 applies so that contracts made in consequence of the exercise of an option (both to purchase and to compel the purchase) have no cooling off period. This replicates an exemption currently provided for by section 17(3) of the Conveyancing (Sale of Land) Regulation.
Commencement - these obligations commenced on 15 August 2025.