Summary of changes to the Joint Form of General Conditions 2018

The Real Estate Institute of Western Australia (“REIWA“), in conjunction with the Law Society of Western Australia, recently released the 2018 Joint Form General Conditions for the Sale of Land (“2018 General Conditions”) which replaces the former 2011 version.

The 2018 General Conditions aim to adapt to the ever evolving legal landscape within Western Australia by taking into consideration new legislation and changes to common law.

Some of the major amendments include:

  • Inclusion that notices can be served electronically by email (clause 21 4(a)(3)).
  • Inclusion of matters relevant to chattels covered under the Personal Property Securities Register (clause 2.8).
  • Inclusion of the Foreign Resident Withholding Regime (clause 3.7) (currently annexure #190) Inclusion of Electronic Conveyancing (clause 3.12) (currently annexure #187).
  • Final inspection – a further right to inspect the property if the initial inspection identified items that require rectification by the seller under the contract (clause 5.1(b)).
  • Seller representation and warranty- new provision that if anything occurs between contract date and settlement that results in a warranty or representation being untrue then the buyer does not have any right to terminate or defer settlement unless the event unreasonably affects the proposed use of the property by the buyer or materially affects the value of the Property (clause 9.3).
  • Sub-division – provides for the changes to section 13 of the Sale of Land Act where the seller of a sub-division of land or a strata lot is not the registered proprietor of the land when entering into the contract with the buyer. There are special provisions relating to a Warning Notice, the Deposit, conditions on approval, lodging plans and giving information (clause 13.9). Form 191 “Warning For Purchasers – Sale of Land Act” contains the required warnings.

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