Review of off the plan contracts and covenants laws

Have your say on options to reform the laws affecting off the plan contracts and covenants. 

The Office of the Registrar General has published a discussion paper, Contracts and Covenants: reform proposals to support the development of land, exploring options to: 

provide greater protections to buyers in off the plan contracts, while balancing the flexibility developers require to complete a project; and 
simplify the process for removing obsolete covenants from land titles, to help unlock potential development sites and remove unnecessary red tape.

Share your feedback in a survey, submission or story at Off the plan contracts and covenants review | Have Your Say, by 7 March 2025.

Off the plan contracts 

Off the plan contracts are crucial for supporting essential housing supply initiatives in NSW. These contracts allow buyers to purchase property early in the development process, giving developers the confidence and financial security to start the project sooner. The discussion paper explores several options for reform, including: 

Making sunset clauses mandatory in contracts so that buyers can withdraw if sunset events do not occur by a set time. 
Requiring developers to disclose the status of the development against construction milestones. 
Limiting the developer’s ability to extend sunset dates and potentially introducing penalties for not meeting those dates. 
Protecting buyers’ contractual interests by allowing a form of caveat to be recorded on the title to the development land.

Covenants 

Restrictive covenants are private agreements between landowners that limit how land can be used or developed. These covenants can become outdated due to changing building styles and public expectations. The discussion paper proposes several reforms, such as: 

Expanding the category of covenants deemed 'obsolete' and removable after 12 years. 
Imposing time limits on new covenants, lapsing after 12 or 20 years. 
Extending the Supreme Court’s power to extinguish covenants under s 89 of the Conveyancing Act.

Please visit the consultation page at Off the plan contracts and covenants review | Have Your Say for more information and to provide your feedback by 7 March 2025.