While most of the Homeowners Code focuses on the provision of information to the buyer, there are important provisions for conveyancers:

Contracts must clearly state the termination rights under the Code, and comply with the Unfair Terms in Consumer Contracts Regs 1999. Presumably, this means that sellers’ solicitors will now need to add a paragraph to their standard contracts explaining the termination rights.

The contract should state the anticipated date by which notice of completion should be served. The contract can no longer remain silent (as is the case for most developers’ sale contracts).

The homebuyer will have the right to terminate the contract if there has been a substantial and significant change to the home, or if there is unreasonable delay in finishing the construction of the home and serving the notice to complete. The Code sets out a specimen clause and states that if the house has not been completed within six months (12 months for apartments) then the homebuyer will have a right to terminate. This is a very important change and will be a welcome relief from homebuyers who might otherwise have been locked into sale contracts for lengthy periods, with their deposits held by homebuilders as agents.

See introductory article in [2010] SJ 23 March 16.