The South Australian government has just introduced its final stages of reform to the South Australian Planning Code (‘the code’) under the Planning, Development and Infrastructure Act 2016 (SA) on 19 March 2021.[1] As such, there have been some changes to disclosure requirements under Forms 1 and 2 of the Land and Business (Sales and Conveyance) Regulations 2010 (SA) that those practicing in real estate and conveyancing need to be aware about.
Aluminium Composite Panels
Under the LBSCR 2021 amendments, vendor disclosure Forms 1 and 2 must now include a statement to address whether the vendor has disclosed to the purchaser the presence of any aluminium composite panels (‘ACP’) installed on the exterior of the building. The statement must note disclosure has been made surrounding the risk posed as a result of that installation, the need of remediation to reduce that risk, and whether the required work has been under taken as to require no further action on their part.[2]
Limited Transition Period
Vendors should endeavour to comply with these new changes as soon as practicable because there is a very limited transitional period for compliance with the new attachments to Forms 1 and 2.
ACP Disclosure Requirements
Forms served on the purchaser before 22 March 2021 will not be required to comply with the ACP disclosure attachment requirements.[3] Where a Form is served on a purchaser after 22 March 2021, that notice will be defective and this could either allow the purchaser to cool off the sale, or sue the vendor for damages in failing to comply with ACP disclosure requirements.[4]
Failure To Comply
A vendor who fails to comply with the Form disclosure requirements may also be in breach the Land and Business (Sale and Conveyance) Act 1994 (SA) for failing those requirements and could be liable for a maximum fine of $10,000.[5]
For the convenience of complying with these new disclosure requirements, the Consumer and Business Services have published template Forms, which vendors may include in their existing templates. Alternatively, updates to Form 1 were made available through the South Australian Integrated Land Information System from Friday 19 March 2021.
If you have any further questions, or wish to discuss further, please do not hesitate to contact our office on (08) 8410 9294 or via our contact us page – contact us.
[1] Land and Business (Sale and Conveyancing) (Planning, Development and Infrastructure) Variation Regulations 2021 (SA) s 2 (‘LBVR 2021’), amending Land and Business (Sale and Conveyancing) Regulations 2010 (SA) (‘LBSCR 2010’).
[2] LBSCR 2010 (n 1) sch 1, Forms 1-2, as amended by LBVR 2021 (n 1) pt 2 r 5(4)– (5).
[3] LBVR 2021 (n 1) sch 1, r 1(4), amending LBSCR 2010 (n 1).
[4] Attorney-General’s Department South Australia, Consumer and Business Services, Vendor Disclosure Updates (web page, 22 March 2021) Vendor disclosure updates (cbs.sa.gov.au); Land and Business (Sale and Conveyancing Act 1994 (SA) s 15 (‘LBSC Act’).
[5] LBSC Act (n 4) s 14.