❓ The Minister for Consumer Protection outlines actions taken by the Carpenter government to address unscrupulous developers exploiting sunset clauses in off-the-plan property sales, including investigations, consumer advisories, and legislative reviews.
AnsweredQoN 668Legislative Assembly
QuestionView source ↗
PROPERTY BOUGHT OFF-THE-PLAN - CONDUCT OF PRIVATE DEVELOPERS
Will the minister advise what initiatives the Carpenter government has taken to stamp out the conduct of unscrupulous private developers when consumers buy property off-the-plan? Mrs M.H. ROBERTS
Will the minister advise what initiatives the Carpenter government has taken to stamp out the conduct of unscrupulous private developers when consumers buy property off-the-plan? Mrs M.H. ROBERTS
AnswerView source ↗
I thank the member for Mindarie for the question on this very important issue. There are some very clear benefits as well as some potential risks in buying land off-the-plan. The Department of Consumer and Employment Protection has been receiving complaints from a range of consumers who have made offers to purchase land or property off-the-plan and the developer has cancelled the sales contract under what is commonly termed a sunset clause of the contract. The sale is withdrawn because certain milestones have not been met. The most common reason that developers give for failing to meet their contractual obligations relate to planning approvals not being secured within a certain period or that the land title is not available within the stipulated time frame. The majority of complainants who have had their contracts cancelled are then invited to make offers to purchase the same block of land off-the-plan at significantly increased prices. In some cases the original offer to purchase has been in place for up to two years. The Department of Consumer and Employment Protection is currently investigating these complaints under the Consumer Affairs Act 1971. In addition, the Department of Consumer and Employment Protection has investigated specific developments to determine whether there is sufficient evidence to support a case for a breach of the Fair Trading Act 1987; that is, whether misleading or deceptive conduct has taken place during the contract period. The list of developments about which the Department of Consumer and Employment Protection has received complaints include Esperance stage 3, Gingin, Secret Harbour, Geraldton, High Wycombe, Donnybrook, and Southern River in Gosnells. As recently as yesterday I released a consumer protection advisory note that will assist consumers when buying land or property off-the-plan. The advisory note has been developed over the past two months in full consultation with other government agencies, including the Department for Planning and Infrastructure and the Department of Land Information, and also bodies such as the Housing Industry Association, the Master Builders Association of Western Australia, the Builders’ Registration Board of Western Australia and the Urban Development Institute of Australia. The advisory note is to be widely distributed by the Department of Consumer and Employment Protection, including in regional Western Australia, and it is also available on the department’s web site. The current review of the Consumer Affairs Act 1971 and of the Fair Trading Act will give consideration to whether legislative changes can be put in place to better protect consumers. Several members interjected. The SPEAKER : I call to order the members for Dawesville and Roe. Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
Mrs M.H. ROBERTS replied: I thank the member for Mindarie for the question on this very important issue. There are some very clear benefits as well as some potential risks in buying land off-the-plan. The Department of Consumer and Employment Protection has been receiving complaints from a range of consumers who have made offers to purchase land or property off-the-plan and the developer has cancelled the sales contract under what is commonly termed a sunset clause of the contract. The sale is withdrawn because certain milestones have not been met. The most common reason that developers give for failing to meet their contractual obligations relate to planning approvals not being secured within a certain period or that the land title is not available within the stipulated time frame. The majority of complainants who have had their contracts cancelled are then invited to make offers to purchase the same block of land off-the-plan at significantly increased prices. In some cases the original offer to purchase has been in place for up to two years. The Department of Consumer and Employment Protection is currently investigating these complaints under the Consumer Affairs Act 1971. In addition, the Department of Consumer and Employment Protection has investigated specific developments to determine whether there is sufficient evidence to support a case for a breach of the Fair Trading Act 1987; that is, whether misleading or deceptive conduct has taken place during the contract period. The list of developments about which the Department of Consumer and Employment Protection has received complaints include Esperance stage 3, Gingin, Secret Harbour, Geraldton, High Wycombe, Donnybrook, and Southern River in Gosnells. As recently as yesterday I released a consumer protection advisory note that will assist consumers when buying land or property off-the-plan. The advisory note has been developed over the past two months in full consultation with other government agencies, including the Department for Planning and Infrastructure and the Department of Land Information, and also bodies such as the Housing Industry Association, the Master Builders Association of Western Australia, the Builders’ Registration Board of Western Australia and the Urban Development Institute of Australia. The advisory note is to be widely distributed by the Department of Consumer and Employment Protection, including in regional Western Australia, and it is also available on the department’s web site. The current review of the Consumer Affairs Act 1971 and of the Fair Trading Act will give consideration to whether legislative changes can be put in place to better protect consumers. Several members interjected. The SPEAKER : I call to order the members for Dawesville and Roe. Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
I thank the member for Mindarie for the question on this very important issue. There are some very clear benefits as well as some potential risks in buying land off-the-plan. The Department of Consumer and Employment Protection has been receiving complaints from a range of consumers who have made offers to purchase land or property off-the-plan and the developer has cancelled the sales contract under what is commonly termed a sunset clause of the contract. The sale is withdrawn because certain milestones have not been met. The most common reason that developers give for failing to meet their contractual obligations relate to planning approvals not being secured within a certain period or that the land title is not available within the stipulated time frame. The majority of complainants who have had their contracts cancelled are then invited to make offers to purchase the same block of land off-the-plan at significantly increased prices. In some cases the original offer to purchase has been in place for up to two years. The Department of Consumer and Employment Protection is currently investigating these complaints under the Consumer Affairs Act 1971. In addition, the Department of Consumer and Employment Protection has investigated specific developments to determine whether there is sufficient evidence to support a case for a breach of the Fair Trading Act 1987; that is, whether misleading or deceptive conduct has taken place during the contract period. The list of developments about which the Department of Consumer and Employment Protection has received complaints include Esperance stage 3, Gingin, Secret Harbour, Geraldton, High Wycombe, Donnybrook, and Southern River in Gosnells. As recently as yesterday I released a consumer protection advisory note that will assist consumers when buying land or property off-the-plan. The advisory note has been developed over the past two months in full consultation with other government agencies, including the Department for Planning and Infrastructure and the Department of Land Information, and also bodies such as the Housing Industry Association, the Master Builders Association of Western Australia, the Builders’ Registration Board of Western Australia and the Urban Development Institute of Australia. The advisory note is to be widely distributed by the Department of Consumer and Employment Protection, including in regional Western Australia, and it is also available on the department’s web site. The current review of the Consumer Affairs Act 1971 and of the Fair Trading Act will give consideration to whether legislative changes can be put in place to better protect consumers. Several members interjected. The SPEAKER : I call to order the members for Dawesville and Roe. Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
The list of developments about which the Department of Consumer and Employment Protection has received complaints include Esperance stage 3, Gingin, Secret Harbour, Geraldton, High Wycombe, Donnybrook, and Southern River in Gosnells. As recently as yesterday I released a consumer protection advisory note that will assist consumers when buying land or property off-the-plan. The advisory note has been developed over the past two months in full consultation with other government agencies, including the Department for Planning and Infrastructure and the Department of Land Information, and also bodies such as the Housing Industry Association, the Master Builders Association of Western Australia, the Builders’ Registration Board of Western Australia and the Urban Development Institute of Australia. The advisory note is to be widely distributed by the Department of Consumer and Employment Protection, including in regional Western Australia, and it is also available on the department’s web site. The current review of the Consumer Affairs Act 1971 and of the Fair Trading Act will give consideration to whether legislative changes can be put in place to better protect consumers. Several members interjected. The SPEAKER : I call to order the members for Dawesville and Roe. Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
Several members interjected. The SPEAKER : I call to order the members for Dawesville and Roe. Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
The SPEAKER : I call to order the members for Dawesville and Roe. Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
[See paper 1878.]
Mrs M.H. ROBERTS replied: I thank the member for Mindarie for the question on this very important issue. There are some very clear benefits as well as some potential risks in buying land off-the-plan. The Department of Consumer and Employment Protection has been receiving complaints from a range of consumers who have made offers to purchase land or property off-the-plan and the developer has cancelled the sales contract under what is commonly termed a sunset clause of the contract. The sale is withdrawn because certain milestones have not been met. The most common reason that developers give for failing to meet their contractual obligations relate to planning approvals not being secured within a certain period or that the land title is not available within the stipulated time frame. The majority of complainants who have had their contracts cancelled are then invited to make offers to purchase the same block of land off-the-plan at significantly increased prices. In some cases the original offer to purchase has been in place for up to two years. The Department of Consumer and Employment Protection is currently investigating these complaints under the Consumer Affairs Act 1971. In addition, the Department of Consumer and Employment Protection has investigated specific developments to determine whether there is sufficient evidence to support a case for a breach of the Fair Trading Act 1987; that is, whether misleading or deceptive conduct has taken place during the contract period. The list of developments about which the Department of Consumer and Employment Protection has received complaints include Esperance stage 3, Gingin, Secret Harbour, Geraldton, High Wycombe, Donnybrook, and Southern River in Gosnells. As recently as yesterday I released a consumer protection advisory note that will assist consumers when buying land or property off-the-plan. The advisory note has been developed over the past two months in full consultation with other government agencies, including the Department for Planning and Infrastructure and the Department of Land Information, and also bodies such as the Housing Industry Association, the Master Builders Association of Western Australia, the Builders’ Registration Board of Western Australia and the Urban Development Institute of Australia. The advisory note is to be widely distributed by the Department of Consumer and Employment Protection, including in regional Western Australia, and it is also available on the department’s web site. The current review of the Consumer Affairs Act 1971 and of the Fair Trading Act will give consideration to whether legislative changes can be put in place to better protect consumers. Several members interjected. The SPEAKER : I call to order the members for Dawesville and Roe. Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
I thank the member for Mindarie for the question on this very important issue. There are some very clear benefits as well as some potential risks in buying land off-the-plan. The Department of Consumer and Employment Protection has been receiving complaints from a range of consumers who have made offers to purchase land or property off-the-plan and the developer has cancelled the sales contract under what is commonly termed a sunset clause of the contract. The sale is withdrawn because certain milestones have not been met. The most common reason that developers give for failing to meet their contractual obligations relate to planning approvals not being secured within a certain period or that the land title is not available within the stipulated time frame. The majority of complainants who have had their contracts cancelled are then invited to make offers to purchase the same block of land off-the-plan at significantly increased prices. In some cases the original offer to purchase has been in place for up to two years. The Department of Consumer and Employment Protection is currently investigating these complaints under the Consumer Affairs Act 1971. In addition, the Department of Consumer and Employment Protection has investigated specific developments to determine whether there is sufficient evidence to support a case for a breach of the Fair Trading Act 1987; that is, whether misleading or deceptive conduct has taken place during the contract period. The list of developments about which the Department of Consumer and Employment Protection has received complaints include Esperance stage 3, Gingin, Secret Harbour, Geraldton, High Wycombe, Donnybrook, and Southern River in Gosnells. As recently as yesterday I released a consumer protection advisory note that will assist consumers when buying land or property off-the-plan. The advisory note has been developed over the past two months in full consultation with other government agencies, including the Department for Planning and Infrastructure and the Department of Land Information, and also bodies such as the Housing Industry Association, the Master Builders Association of Western Australia, the Builders’ Registration Board of Western Australia and the Urban Development Institute of Australia. The advisory note is to be widely distributed by the Department of Consumer and Employment Protection, including in regional Western Australia, and it is also available on the department’s web site. The current review of the Consumer Affairs Act 1971 and of the Fair Trading Act will give consideration to whether legislative changes can be put in place to better protect consumers. Several members interjected. The SPEAKER : I call to order the members for Dawesville and Roe. Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
The list of developments about which the Department of Consumer and Employment Protection has received complaints include Esperance stage 3, Gingin, Secret Harbour, Geraldton, High Wycombe, Donnybrook, and Southern River in Gosnells. As recently as yesterday I released a consumer protection advisory note that will assist consumers when buying land or property off-the-plan. The advisory note has been developed over the past two months in full consultation with other government agencies, including the Department for Planning and Infrastructure and the Department of Land Information, and also bodies such as the Housing Industry Association, the Master Builders Association of Western Australia, the Builders’ Registration Board of Western Australia and the Urban Development Institute of Australia. The advisory note is to be widely distributed by the Department of Consumer and Employment Protection, including in regional Western Australia, and it is also available on the department’s web site. The current review of the Consumer Affairs Act 1971 and of the Fair Trading Act will give consideration to whether legislative changes can be put in place to better protect consumers. Several members interjected. The SPEAKER : I call to order the members for Dawesville and Roe. Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
Several members interjected. The SPEAKER : I call to order the members for Dawesville and Roe. Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
The SPEAKER : I call to order the members for Dawesville and Roe. Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
Mrs M.H. ROBERTS : I table a copy of the consumer protection advisory note headed “Buying land or property off-the-plan”. If members have a particular interest in the matter, I have brought some spare copies with me. [See paper 1878.]
[See paper 1878.]
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