Effective from 1 October 2010, is a new Form 30c Warning Statement Version 6. The current version of the Form must be used from 1 October 2010.
Failure to use the correct form can lead to the Buyer terminating the Contract under Section 370 within 90 days of receiving a copy of the relevant Contract unless settlement occurs earlier.
We have attached a copy of the new Version 6 Warning Statement and suggest that you save a copy to your database.
If a Buyer elects to terminate a Contract under the Cooling Off Period, the Seller must refund the deposit within 14 days of termination.
Please feel free to contact us should you have any queries regarding the changes.
CHANGES TO PAMD ACT & BCCM ACT – EFFECTIVE 1 OCTOBER 2010
(see also Fast Facts 30 Aug 2010)
Q. What changes are about to commence affecting the process for entering contracts?
A. A simplified process for entering into contracts for the sale of residential houses, land and units will commence as of Friday 1 October 2010.
Note: 1. The new laws will apply to any contract entered into before 1 October and settled after that date and any contract entered into on or after that date.
2. There will be a new PAMD Form 30c – this is not yet available.
As there will be a new PAMD Form 30c from 1 October, if a contract is posted before that date you must necessarily use the old version of the Form 30c. If the contract is not received in the post until on or after 1 October the contract will have the wrong version of the Form 30c. The contract may be terminated. Therefore, we suggest you either hold off sending documents, if they will not be received in the ordinary course of post before 1 October, or hand deliver or courier the documents to a buyer in those last few days before 1 October.
Summary Of The New Procedure For Entering Contracts From 1 October 2010.
1. When the Seller/Agent gives a proposed Buyer a proposed contract (whether or not the Seller has signed it) –
(i) attach a Warning Statement PAMD Form 30c ( and if a unit, a BCCM Form 14) to the proposed contract in a secure way eg. stapled or bound ( If sent by email or fax, at the same time as the proposed contract.), so that all documents appear to be a single document.
(ii) give a clear statement to the Buyer, directing the Buyers attention to the Form 30c and if applicable Form 14 and the proposed contract. This can be done by a simple letter. Eg.“ Your attention is drawn to the Warning Statement, ( if a unit, the Information Statement ) and the proposed relevant contract accompanying this letter.”
2. The new legislation makes no distinction between giving documents to a buyer by hand, post, fax or email etc. The current technical differences for sending documents by hand, post, fax email etc will no longer apply.
3. It is no longer essential that the Form 30c and Form 14 are the top pages and attached in the correct order. However, we recommend the Form 30c and if applicable, ,the Form 14 are attached in that order and then behind those attach the contract documents. We also recommend the Buyer be required to sign the Form 30c before they sign the contract to limit a buyers rights to terminate under s.370 PAMD Act).
4. Use the correct versions of the PAMD Form 30c and BCCM Form 14.
5. If negotiations take place before the contract is finalised, as long as the property and parties remain the same, it will not be necessary to keep repeating the procedure in paragraph 1(i) and 1(ii) above
6. It is an offence under the Act not to give the documents referred to in paragraph 1 above.
7. Where the Seller gives the Buyer the contract after being signed by all parties there must be a Form 30c (and if a unit, the Form 14) attached to the relevant contract..
8. Terminating a contract – where no PAMD Form 30c attached, when a buyer is given a proposed contract –
(i) The Buyer can terminate at any time before settlement.
(ii) The Buyer cannot terminate if they signed a Warning Statement attached to a proposed contract before the Buyer signed the proposed contract.
(iii) Termination must happen not more than 90 days after the day the Buyer receives a copy of the contract from the Seller.