Is the property you are selling considered residential under the Conveyancing Act 1919 (NSW) or is it rural property?
You have been approached by a landowner to sell a large parcel of land which has a residential dwelling on it. So you proceed as though this is the sale of a residential property without considering the sale on its individual facts.
Residential property under section 66Q of the Conveyancing Act 1919 (NSW) is defined as anything nonresidential, or with a land area of less than 2.5 hectares (6.2 acres). As such, property in excess of 2.5 hectares (whether it be solely residential or farmland) is considered rural. Now we know this, what size if the property you have been approached to sell? Does it exceed 2.5 hectares?
If it does exceed this land area or is non-residential (used solely for farming purposes or otherwise), the details below will apply.
Marketing rural property
Under section 63 of the Property, Stock and Business Agents Act 2002 (NSW) the requirement for an agent to hold a copy of the proposed Contract for Sale states this only necessary in relation to residential property. As such, marketing of a property deemed rural under the above definition can be marketed prior to the agent holding a copy of the proposed Contract for Sale.
Cooling off periods and Rural Property
Section 66X of the Conveyancing Act 1919 (NSW) requires every contract for the sale of residential property to contain a clause which provides for a 5 business day cooling off period. This, as you can appreciate, causes confusion because the standard clauses in a Contract for Sale contain this cooling off provision. However, if you look closely once again it only applies to residential property.
Therefore, if you have established the property is not a residential property under s66Q of the Conveyancing Act 1919 (NSW), then there is no legal obligation for the Contract for Sale of a rural property to contain a cooling off period.
If you have any questions about this topic or other conveyancing related enquiries, please contact Kylie Fuentes.