Building Units and Group Titles Act 1980

Before a contract (the contract) is entered into by an original proprietor and another person (the purchaser) for the sale to the purchaser of a proposed lot, the original proprietor must give the purchaser a disclosure statement complying with this section.

The disclosure statement must—

clearly identify the proposed lot to which the statement relates; and

be accompanied by a disclosure plan, complying with section 49A, for the proposed lot; and

state the date by which the original proprietor must settle the contract for the sale of the proposed lot as provided under section 49B; and

set out or be accompanied by particulars of the proposed lot entitlement of every proposed lot and the proposed aggregate lot entitlement; and

set out or be accompanied by details of any prescribed arrangement entered into in respect of the proposed plan including the terms and conditions of that prescribed arrangement and the cost or estimated costs thereof to the proprietor of each lot; and

set out or be accompanied by the proposed by-laws in respect of the proposed plan; and

be signed by the original proprietor.

The disclosure statement must be substantially complete.

The original proprietor does not fail to comply with subsection (1) merely because the disclosure statement, although substantially complete as at the day the contract is entered into, contains inaccuracies.

If, at any time before the contract for the sale of a proposed lot is settled, the disclosure statement given to the purchaser—

is not accurate as at the time it is given; or

contains information that subsequent to the time it is given becomes inaccurate in any respect;

The further statement must—

be signed by the original proprietor; and

to the extent, if any, the further statement rectifies inaccuracies in the disclosure plan—be certified as accurate by a cadastral surveyor.

The purchaser may avoid the contract if—

it has not already been settled; and

the purchaser would be materially prejudiced, if compelled to complete the contract, given the extent to which the disclosure statement was, or has become, inaccurate; and

the avoidance is effected by written notice given to the original proprietor within 21 days, or a longer period agreed between the purchaser and original proprietor, after the original proprietor gives the purchaser the further statement.

Subsections (4) to (4B) continue to apply after a further statement is given on the basis that the disclosure statement under subsection (1) is taken to be constituted by the disclosure statement and any further statement.

If the original proprietor fails to give the purchaser a disclosure statement in compliance in every respect with subsections (1) to (3) or a further statement, the purchaser may avoid the contract by written notice given to the original proprietor if—

the contract has not already been settled; and

for a failure to give a further statement under subsection (4)—the purchaser would be materially prejudiced if compelled to complete the contract, given the extent to which the disclosure statement was, or has become, inaccurate.

If the purchaser avoids a contract under this section, the original proprietor must, within 14 days after the avoidance, repay to the purchaser—

any amount paid to the original proprietor towards the purchase of the proposed lot; and

any interest accrued on the amount since it was paid.

However, if the amount or interest is held by an entity in a trust account kept as required under an Act, the requirement under subsection (6) applies subject to compliance with the law governing the entity’s trust account.

An amount repayable under subsection (6) may be recovered as a debt.

Save as prescribed by subsections (4) to (5) this section applies so as not to render illegal or void any contract or to empower any party to avoid the contract.

Any covenant, agreement or condition expressed or implied in any contract, agreement or document whatsoever legally binding, or intended legally to bind, the purchaser in respect of the sale to that purchaser of any proposed lot to which this section applies, or in a separate document, whereby it is agreed between the original proprietor and the purchaser that this section or any provision hereof shall not apply in respect of that sale, or shall so apply subject to exceptions, limitations or restrictions, or otherwise affecting or prejudicing the rights and remedies had by the purchaser under this section or any provision hereof, shall be absolutely void and of no legal effect whatsoever.

In this section—

The provisions of this section do not apply to any contract, agreement or document or any management or other agreement entered into before the commencement of this Act.