New legislation introduced to State Parliament today will support the timely release of new subdivided lots, enabling developers to invest while providing better protections for buyers.
The Sale of Land Amendment Bill 2016 will address potential issues buyers may face when purchasing a lot off the plan.
Lands Minister Terry Redman said currently, developers were able to offer land for sale without first obtaining relevant approvals and titles.
"This can be very risky for the purchaser if finance for the development falls through or the developer is unscrupulous and absconds with the purchaser's deposit," he said.
Mr Redman said a 2014 Supreme Court decision had led to legal uncertainty about the ability of developers to enforce sales contracts if they were signed before they owned the land.
"This legal uncertainty has been detrimental to the property industry because developers have been constrained in their ability to deliver new projects and banks have been reluctant to lend money in these circumstances," he said.
The Minister said the Liberal National Government's proposed legislation would enable developers to sell lots off the plan while also providing extra protection for buyers.
"The amendments to the Act will clearly state the obligations of developers and buyers when the developer is not the registered owner of the land at the time of sale," Mr Redman said.
"Sales contracts will make buyers aware of the situation and will provide a deadline for the developer to become the registered owner of the lot.
"Deposits will be held in Australian trust accounts and will be refunded if the developer fails to meet the deadline.
"These amendments will clear up uncertainties relating to the enforceability of sales contracts which will support the release of affordable new lots and subdivisions into the market."
Minister's office - 6552 6700