2025 Changes to the Conveyancing Act and Real Property Act
The Conveyancing and Real Property Amendment Act 2025 received assent on 15 August 2025. Some important changes to be aware of include:
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 26. Things to note about the amendment:
- 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.
The change to the definition of option has meant that small changes had to be made 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 – while changes to the form of cooling off notices commenced on 15 August 2025, a transitional provision applies so that a contract or option can include either the old or new form of cooling off notice up until 31 May 2026.
- This provision was included as section 28 Conveyancing (Sale of Land) Regulation and means that a contract or option will not be invalidated simply because it has not been updated to include the new prescribed form. Contracts exchanged on and from 1 June 2026 will need to include the new form of cooling off notice prescribed by the amendments.
The Bill expanded the types of interest that can be released by way of a s 88B instrument lodged with a plan. Interests that will be able to be released 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 s 88D or s 88E
COMMENCEMENT – this amendment has not yet commenced. It will commence on proclamation, after updates to NSW LRS processes.