Changes to laws governing NSW planning certificates - How do they affect you?

Following recent changes to planning regulations in New South Wales, vendors entering into contracts for sale need to be vigilant in ensuring that section 149 planning certificates comply with the new regulations and the requirements of the Conveyancing Act 1919 (NSW) or run the risk of having the contract rescinded.

A new General Housing Code has been introduced along with amendments to the Environmental Planning and Assessment Regulation 2000 (NSW). The amendments change the information to be included in section 149(2) planning certificates that are required to be attached to a contract for sale under the Conveyancing Act 1919 (NSW).

Section 149(2) planning certificates now need to contain a disclosure as to whether complying development can be carried out on the land. For any contracts for sale entered into on or after 27 February 2009, a purchaser can seek to have the contract rescinded if the vendor fails to provide this information, along with other mandatory disclosures and vendor warranty obligations.

In this update, we look at the reforms, what is now required and what can occur if you fail to comply.