New laws announced by the NSW State Government today will deter rogue developers from rescinding off-the-plan contracts for financial gain, and ultimately protect buyers and reputable industry operators, the Urban Development Institute of Australia (UDIA) NSW said.
UDIA NSW Chief Executive Stephen Albin said it is critical for the future of the industry that the rogue operators be stamped out to maintain confidence and integrity in the field.
"We are pleased to see the Minister has been swift in his efforts to close this loophole as the behaviour of a few unethical developers needs to be stopped," he said.
He said with tighter definitions, the Government's proposal will now not impact on development finance and the recognition of pre-sales as part of that finance.
"While we are broadly supportive of the initiative, the devil will be in the detail so we will be taking a close look at the legislation when it is available."Mr Albin said 639 submissions were received during the recent public consultation period, which represents only 2.3 per cent of dwellings completed over the past year of available government data.
"With only 639 complaints out of around 27,350 new houses that were developed over the past year, the issue is clearly occurring on the fringes of the industry," he said.
"It is critical that business dealings within the industry continue to be conducted in good faith and with integrity."