Northern Territory Explanatory Statements

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LAW OF PROPERTY AMENDMENT (SALES OF RESIDENTIAL PROPERTY) BILL 2005

EXPLANATORY STATEMENT
LAW OF PROPERTY AMENDMENT (SALES OF RESIDENTIAL PROPERTY) BILL SERIAL 13
GERRY WOOD MLA - INDEPENDENT MEMBER FOR NELSON

The purpose of this Bill is to amend the Law of Property Act.

These amendments will promote consumer protection by introducing vendor disclosure within sales of residential land and property in the Northern Territory.

This will be done by the vendor obtaining reports or certificates describing the status of the property or various improvements to the property. A cooling-off period will also exist during which the purchaser may reconsider their decision to purchase.


NOTES ON CLAUSES

Clause 1. Short title
When passed, the bill may be cited as the Law of Property Amendment (Sales of Residential Property) Act 2005

Clause 2. Commencement
The Act will come into operation on the date fixed by the Administrator in the Gazette.

Clause 3. Principal Act amended
The Act to be amended is the Law of Property Act.

Clause 4. New Part 6, Division 5
A new Division 5 with new sections will be inserted into the Principal Act:
agent;
bore;
bore status report;
building status report;
encumbrance;
family member;
lawyer;
pest inspection report;
pest treatment report;
prospective purchaser;
related person;
required documents;
rescission notice;
residence;
residential property;
septic tank status report; and
vendor. any encumbrance on the property;
a building status report;
a pest treatment report if the residence is occupied; or if the residence is completed but unoccupied, a pest treatment certificate; or if the residence is still under construction, a written agreement to obtain a pest treatment certificate;
a bore status report if water is supplied from a bore;
an occupancy permit or approval to occupy under the Building Act if relevant;
the relevant certification under the Swimming Pool Safety Act if the residence has a swimming pool;
a septic tank status report if there is a septic tank installed;
a diagram showing the approximate boundary or the 1% annual exceedance probability or seepage line if the property is subject to flooding or seepage within 200m of any residence on the property; and
a storm tide map for the area if the property is in a storm tide hazard area. the vendor or the vendor's agent or lawyer; or
a family member of the vendor or their agent or lawyer; or
a member of a firm that the vendor, their agent or lawyer (or a family member of these persons) is a member of; or
another person carrying on a business in which any of these persons may have a direct or indirect right to participate in the profits of that business. the purchaser is a corporation; or
the property is sold by tender or auction; or
under section 78G, the purchaser waives the cooling-off period.

 


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