What are prescribed documents?
These are documents that must be included in a Contract of Sale in NSW according to The Conveyancing (Sale of Land) Regulation 2010 under Schedule 1 Prescribed Documents.
The documents are prepared by the Vendor’s Conveyancer/Solicitor to inform the potential buyer of relevant information about the property the buyer needs to be aware of.
1. Section 149 (2) Certificate – (Council zoning of land residential or commercial etc.)
2. Service Drainage Diagram – (Location of services)
3. Title & Title notations – (Owners & restrictions on Land use)
4. Deposit Plan or Strata Plan – (Location of Lot)
Is attaching prescribed documents compulsory?
YES in New South Wales it is compulsory for the agent to have a copy of the Schedule 1 Prescribed Documents with the Contract of Sale BEFORE they can market the property in accordance with the Conveyancing (Sale of Land) Regulation 2010 (NSW).
To protect the Purchaser.
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The Conveyancing Act and Conveyancing (Sale of Land) Regulations provide that if the Prescribed Documents are not included in the sale of land contract, the buyer may rescind (pull out of) the contract for the seller’s failure to attach to the contract the documents prescribed at any time within 14 days after the making of the contract, unless the contract has been completed.
Although under the general law and the Conveyancing (Sale of Land) Regulation 2010 (NSW) there are significant disclosure requirements on vendors in that vendors need to disclose “prescribed documents”, a purchaser should, after exchange, make enquiries to determine whether any of the “prescribed warranties” have been breached – e.g. unapproved Council Structures or Boundary disputes.
NOTE: if a Contract of Sale is exchanged in haste sometimes by Sales Agents – and any of the Prescribed Documents are missing – the Purchaser can rescind the Contract within 14 days of exchange of Contracts (under the Conveyancing Sale of Land Act) And if Standard Conditions are not present the Purchaser can rescind the Contract anytime up to Settlement – been established by case law.
Currently (as at August/September 2016) the NSW Office of the Registrar General are conducting a Review of the Conveyancing (Sale of Land) Regulation 2010 and the Conveyancing Process in New South Wales.
Among the issues under review are documents and it has already been suggested in the Review that the following documents should be made additional compulsory attachments to be included in the contract for sale of land:
A. Pest and Building Inspection Reports
B. Strata Record inspection Report C.
Sewerage Location diagram