The NSW Government is proposing reforms to hold developers accountable for delays in delivering off-the-plan homes, aiming to boost consumer protection and housing supply. Developers amd builders should be aware of these potential changes, as they could impact contract terms and development timelines.
Key proposed reforms:
- Mandatory sunset clauses – Buyers could withdraw from contracts if developers fail to meet deadlines.
- Clear construction milestones – Developers may be required to disclose project status to buyers.
- Stricter extension rules – Sunset date extensions may be limited to unavoidable factors like weather or supply issues, with penalties for inaction.
- Easier removal of outdated land restrictions – The Government aims to streamline the process of removing obsolete covenants that limit development potential.
Why it matters:
- These reforms could create stricter project timelines, requiring better planning and communication.
- Developers may face financial penalties if they fail to deliver on contracts.
- Increased transparency could build buyer confidence but also add compliance requirements.
Industry perspective:
Minister for Customer Service and Digital Government Jihad Dib stated:
"We know most developers do the right thing, but we don’t want businesses running down the clock on contracts to sell at a higher price."
Registrar General Danusia Cameron added:
"Off-the-plan buyers need more information and support as they cannot inspect properties before purchase. These reforms aim to improve confidence in the process."
The public consultation is open until 7 March 2025, with legislation expected in 2025. Builders and developers can provide feedback via the NSW Government’s Have Your Say platform: