Friday, 19 June 2020
Guidance on using the Electronic Contract for Sale in multi-unit developments
Some members have asked for clarity on how to use the Law Society’s Electronic Contract for Sale when producing contracts for multi-unit developments and ‘off the plan’ sales. The Property Law Committee have provided the following clarification.
When purchasing the electronic contract for the sale of units ‘off the plan’ for marketing purposes, users should:
- select the “Unit” option;
- select either the “Property Address” or the “Development Name” option, depending on the user’s preference;
- in the “Unit Number” field, enter the range of units in the relevant development (eg 1-50);
- in the “Property Address” or “Development Name” field (as the case may be), enter the relevant details;
- in the “Division/District”, “Section”, and “Block Number” fields, enter the relevant details;
- in the “and known as (optional)” field, either leave the field blank or enter the relevant details, depending on the user’s preference;
- select either the “Yes” or “No” option as to whether a Schedule is required, depending on the user’s preference. It is anticipated that most users will select the “No” option, on the basis that they will complete the Word version of the Schedule, which can then be edited / updated as required in due course, including as individual units are sold. In this regard, it is noted that members can download a Word version of the Schedule from the ACT Law Society website;
- if “Yes” was entered for the Schedule field, enter the relevant details;
- the user will then be taken to the review screen, and if all displayed information is correct, select the “next” button; and
- the user will then be taken to the purchase contract screen, and if all displayed information is correct, select the “purchase contract” button.
Following this approach will generate a set of watermarked pages (including the Schedule, if this option was selected by the user), which can then be used as a marketing contract for the development. Of course, the seller will also need to comply with the other documentation requirements of sections 9 and 10 of the Civil Law (Sale of Residential Property) Act 2003, to ensure that the contract for sale complies with those requirements.
As individual sales within the development are negotiated, users should then purchase a property-specific contract for sale for each unit, following the approach outlined above, except that the relevant unit number will be entered in the “Unit Number” field. Following this approach will generate a set of watermarked pages (including the Schedule, if this option was selected by the user), which can then be used as a sales contract for the relevant unit.
All users should refer to the Electronic Contract for Sale User Guide for more information on how to use the electronic contract.