Vigilance is crucial as there is no transitional period.
The new form must be used for all contracts issued or signed (by either the seller or buyer) on or after 1 August 2013 and a failure to do so may allow a buyer rights of termination.
Other important amendments
Other welcome amendments remove the requirement of the seller to provide the buyer with a full copy of the Community Management Statement prior to entry into a contract for the sale of a community title lot.
Disclosure statements will also be amended to remove the requirement for the provision of the following:
- A statement about the extent to which the lot owner’s contributions are based on the contribution schedule lot entitlements;
- S statement about the extent to which the lot owner’s contributions are based on the interest schedule lot entitlements; and
- A statement that the entitlements are set out in the community management statement.
A failure to provide the Community Management Statement or the statements listed above previously allowed buyers a statutory right of termination. We join with the industry in applauding the winding back of some of these measures that often saw form triumph over substance.
What do I need to do?
Failure to use the correct version Form 14 can have dire consequences for the seller in that it may afford the buyer termination rights.
Accordingly, sellers and seller’s agents should take a prudent approach to ensuring the correct form is in use.
Any contract package issued to a buyer on or before 31 July 2013 with the superseded Form 14 (version 10) must have been fully signed by both the buyer and seller on or before 31 July 2013. It is paramount that any contract package issued but not signed by both the buyer and the seller on or before 31 July 2013 be withdrawn and reissued on or after 1 August 2013 utilising the new Form 14 (version 11). Any contract issued to a buyer containing the former version 10 Form 14 that is received on or after 1 August 2013 will not be able to be accepted and will need to be reissued using the new Form 14 (version 11).