Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Legal

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The latest NSW 2014 edition of the Contract for Sale and Purchase of Land features a number of changes to the 2005 edition, including new clauses on electronic conveyancing.
The new 2014 edition of the Contract for Sale and Purchase of Land was issued by the Joint Copyright Holders, Law Society of New South Wales and the Real Estate Institute of New South Wales, last month.
While the 2005 edition of the contract was issued in both paper and electronic formats, the new contract has been released in an electronic format only, <a href="https://www.cbp.com.au/People/Gary-Newton?utm_source=Mondaq&amp;utm_medium=syndication&amp;utm_campaign=author-bio-link">CBP Lawyers</a> has advised.
Although the contract is largely the same as the 2005 edition, it contains a few changes:
<ul>
<li>The contract has been renamed, from "Contract for Sale of Land" to "Contract for Sale and Purchase of Land". </li>
<li>The front page of the contract has a few changes, including the addition of buyer's agent as well as storage spaces as an improvement and solar panels as a possible inclusion. </li>
<li>There are a few new boxes to tick, including the vendor agreeing to accept a deposit bond and the parties electing to use the new electronic conveyancing for completing the purchase. </li>
<li>One change that was badly needed was the removal of references to "vendor's duty". Although it was still relevant at the time the 2005 edition was being prepared, shortly after release the vendor's duty was scrapped. </li>
<li>A new clause on "breach by the vendor" has been added. This new clause 8.2 is important because in the previous drafts of the contract there had been extensive clauses in relation to termination for default by the purchaser, but there was no corresponding clause in relation to default by the vendor. This lack of mutual breach clauses could be seen as being an unfair contract term. The new clause restores the balance. </li>
<li>There is a new clause 30 on electronic conveyancing. Given the rollout of electronic conveyancing over the last year and the fact that it is expected that the first settlements of transfers in NSW will occur using the new electronic system at the time of publication of this article, the joint copyright holders thought it would be a good idea to put in an extensive clause that dealt with all of the key steps and processes required in order to complete a matter using the new electronic conveyancing.</li>
</ul>
Gary Newton, a partner at CBP Lawyers<a href="https://www.cbp.com.au/People/Gary-Newton?utm_source=Mondaq&amp;utm_medium=syndication&amp;utm_campaign=author-bio-link"></a>, says the new clause 30 on electronic conveyancing sets out a mechanism for the party's representatives to confirm if it is proposed that the matter will proceed using electronic conveyancing and a mechanism for a party's representative to notify the other party that the matter will need to default to the paper environment, as well as the payment of fees and costs associated with that change.
The electronic conveyancing clause sets out:
<ul>
<li>How to go about creating the work space </li>
<li>How to populate the work space with data </li>
<li>How to send certain invitations to join the work space </li>
<li>Subsequent communications between the parties as they prepare for settlement </li>
<li>Time frames for the supply of adjustment figures, completion of a financial settlement schedule and digital signings of all things necessary for each settlement</li>
</ul>
Newton, who is the author of the new book Real Property Law (4th edition, 2014) and is the co-author and co-editor of a new book titled Annotated Conveyancing of Real Property Legislation in NSW, noted the new clause 30 on electronic conveyancing provides a default mechanism for the provision of settlement documents outside the work space if not otherwise agreed by the parties and sets out the consequences of the computer systems of the land registry, the Reserve Bank of Australia or the electronic platform being inoperative at the completion time.
"Finally, the electronic conveyancing clause provides for amendment of other clauses of the contract as necessary, for example clause 16 is amended such that the place for settlement becomes the work space," he advised.
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jchancellor-FAypfDUnLy

Contract changes that buyers and sellers of land in NSW should know about

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GUEST OBSERVATION
Back in 2010 we received an enquiry about the real estate auction method in NSW and the sharp, deceptive practices that are sometimes used to enforce a contract.
A consumer buyer, whom we spoke to, believed they were induced to enter into a contract at auction by misleading and deceptive conduct and was considering a civil action against the agent and vendor involved. After listening to their concerns we decided to invest some time into completing a legal study of the real estate auction method, while obtaining some powerful legal advice along the way to substantiate the findings.
This is what we found.
The Statute of Frauds, is an Act passed in England in 1677. What has this got to do with modern-day Australia? Well, back in the 17th century, the law of contract was beginning to take shape. In particular it was becoming possible to enforce executory (future) promises.
The law of evidence, however, was still back in the dark ages. It did not allow anyone to give evidence to support their own case. It was possible to prove a case by simply getting 12 of your mates to come along and swear, for example, that so and so made a promise to pay some money.
This laid the way open to make fraudulent claims by simply getting others to commit perjury on your behalf. The answer was provided by the Statute of Frauds which stipulated that certain contracts had to be evidenced in writing. Not all contracts – only a limited class of contracts.
To this day, the same statutory provision, re-enacted (or even still applying in their own right in NT and WA) in the states and ACT, governs at least contracts involving interests in land and one or two other contracts. Still, to this day, the legislation is referred to generally as the Statute of Frauds.
The Statute of Frauds has, it must be said, got a bad smell about it. It can be used as a technical defence to a contract claim. That is, it enables someone who has committed himself or herself to a contract to simply wriggle out of it on the basis that there is not a sufficient writing to satisfy the legislation.
There is no merit, no plausible or understandable excuse for not performing; only a fortuitous, technical defence which would only be apparent to the person after they have talked to their lawyer.
The Statute of Frauds is invoked by a defendant in a breach of contract action. If the defendant can establish that the contract he has failed to perform is legally unenforceable because it has not satisfied the requirement of the statute, then the defendant cannot be liable for its breach.
For example, suppose that a plaintiff claims that a defendant agreed to pay her a commission for selling his building. If the defendant can demonstrate that no commission contract was signed, the statute of frauds will prevent the plaintiff from recovering the commission.
The legal advice we received, would be of interest to many auctioneers’ in NSW and other states in Australia. But firstly we need to establish that a bid is, in effect, an offer of a price for the property being sold, and the fall of the auctioneer’s hammer the acceptance.
Once the auctioneer’s hammer has fallen, the auctioneer has by implication the authority of the highest bidder to sign any memorandum on the bidder’s behalf embodying the conditions of the sale, such memorandum being sufficient to satisfy the requirements of the Statute of Frauds and the Sales of Good Act.
However, if a successful bidder for certain land at an auction sale refused to sign a written sale agreement, it would be difficult to enforce specific performance of an agreement to purchase the property under the Statute of Frauds. This is due to there being no expressed authority under auction laws in NSW and on the bidder’s register, which permits the auctioneer at the fall of the hammer to sign any memorandum or contract of sale on the bidder’s behalf.  
Although, in the old case of Phillips vs. Butler [1945], where a successful bidder declined to sign a contract for the sale of land at the conclusion of an auction, a judge ruled there was an irrevocable authority to sign the contract, due to evidence proving that both parties had finalised a contract and specific performance of the contract in this case was required.
However, this ruling to some may seem straightforward on its face, but not quite.
The auctioneer’s authority to sign on the purchaser’s and, if necessary, the vendor’s behalf is only an irrevocable authority once the contract is final and both parties have agreed to be legally bound.
Further to this, under contract law, for an agreement to be regarded as a contract, it must contain four essential ingredients: if any one of them is absent the agreement will not be legally binding.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
One of the essential ingredients of a contract is the ‘Intention of legal consequences’. The parties to the agreement must understand that the agreement can be enforced by law. For a contract to be binding, it does not have to expressly state that you understand and intend legal consequences to follow.
For commercial contracts your intentions are presumed, for example, to be legally bound. The parties to a contract can decide not to be legally bound by the agreement – this must be clearly stated and is then an agreement that is not legally enforceable.
In NSW under the standard contract for sale of land the following warning statement is located on page 3 of the contract:
“IMPORTANT NOTICE TO VENDORS AND PURCHASERS
“Before signing this contract, you should ensure that you understand your rights and obligations, some of which are not written in this contract but implied by law.”
This provision of the contract gives each party more freedom to further negotiate the terms of the contract before deciding to be legally bound. The negotiation stage of a contract would likely challenge and override the irrevocable authority to sign after the fall of the hammer.
Furthermore, the principles of contract law require that consideration be given for the contract to be valid. Consideration means that something of value for example a deposit was given to the vendor by the purchaser.
Under auction conditions in NSW, it doesn’t state that all bids must be unconditional and at the fall of the hammer is forming of the contract. Surprisingly, there is such a thing called conditional bidding and this is permissible at auctions in NSW and in the other states as well. It is advised that such information be disclosed to bidders prior to commencement of the auction; this not only will prevent allegations of mismanagement and fraud, but should also come as a timely reminder, that a successful bidder is not always a true unconditional bidder.
All estate agents should be aware, that all financial institutions have never operated in line with real estate auction conditions, therefore, any winning bidder who is still subject to a loan doc approval with the bank, should be given the courtesy and respect of their offer being made subject to finance.
In other words, if the winning bidder was restrained from signing the contract under auction conditions, due to unavoidable circumstances relating to finance approval, the contract of sale, should therefore be entered into under private treaty conditions and not under the traditional auction conditions. The contract would need to include also, a seller’s warning statement and remain on the market until such time the contract is unconditional.
National Unfair Contract Terms Laws (part of the Australian Consumer Law)
One of the most significant reforms for New South Wales businesses and consumers are the provisions addressing the use of unfair contract terms in standard form consumer contracts, contained in Part 2-3 of the Australian Consumer Law (commenced on 1 July 2010 at the Commonwealth level.
This law has the potential to create a basis for a significant amount of litigation. The definition of ‘unfair’ adopted in Part 2-3 may cause uncertainty over the enforceability of contract terms which favour one party over another, providing all consumers additional grounds upon which to challenge and potentially avoid their contractual obligations.
While there have not yet been any instances of enforcement of the national unfair contract terms law, publications released by the ACCC give some indication as to what will be considered to be an ‘unfair term’ under these provisions.
A term of a consumer contract will be void if:
<ul>
<li>The term is unfair; and</li>
<li>It is a standard form contract.</li>
</ul>
A consumer contract is defined as a contract for the supply of goods or services or a sale or grant of an interest in land to an individual whose acquisition of the goods, services or interest is wholly or predominantly for personal, domestic or household use or consumption.
For example, a buyer acquiring an off the plan apartment for investment purposes will not be a ‘consumer’ because of their reasons for buying. However, if it is for their own occupation the buyer will be a ‘consumer’.
The test for unfairness, under Sch 2, s. 24(1) of the Act and s. 12BG of the ASIC Act, states that a term of a consumer contract is unfair if it:
<ul>
<li>Would cause a significant imbalance in the parties’ rights and obligations arising under the contract and</li>
<li>Is not reasonably necessary to protect the legitimate interests of the party who would be advantaged by the term and</li>
<li>Would cause detriment (whether financial or otherwise) to a party if it were to be applied or relied on.</li>
</ul>
All three limbs of the unfairness test must be proven, on the balance of probabilities, to exist for a court to decide that a term is unfair.
In light of the unfair contract law, businesses should prepare themselves and adjust the way in which they deal with individual consumers in the following ways:
<ol>
<li>Be aware and take note of whether a consumer is purchasing for investment purposes or for their own personal use;</li>
<li>Be willing to negotiate the terms of the contract with the consumer and keep detailed records of any negotiations;</li>
<li>Obtain an acknowledgement from the consumer that they are aware of and understand any terms  in the contract which may be seen to favour one party over another; and</li>
<li>Have your standard form consumer contracts reviewed to ensure that their terms are not at risk of being voided for being ‘unfair’.</li>
</ol>
Finally, the law in NSW requires that an agent must also; act honestly, fairly and professionally with all parties in a transaction. An agent must not mislead or deceive any parties in negotiations or a transaction.
Silent Auction – The Alternative Method
<a href="https://www.wikihow.com/Run-a-Silent-Auction" target="_blank">Silent auctions</a> are auctions held without an auctioneer. People place their bids on sheets of paper instead. They're often used by charities to raise money, but actually can be a useful method in real estate.
When there are multiple buyers under Private Treaty - converting to either a “Sale by Tender method (where buyers get one opportunity to put forward their most competitive offer and once the vendor makes their final decision on a specified time and date, the decision is announced) or “Silent Auction Method” makes perfect sense to avoid engaging in misleading and deceptive conduct.
As previously mentioned, the auction is "silent" in that there is no auctioneer selling the property and bids are written on a sheet of paper. After each pre-determined round, the agent announces the highest bidder. Bids continue to escalate in subsequent rounds. At the end of the final round, the highest registered bidder is the purchaser.
There are variations to silent auctions which may include sealed bids. The highest bidder pays the price he or she submitted. However, the capability of inducing bidders into error or refusing to disclose any competing bid relevant to the decision of the other party, would likely lead to an allegation of misleading and deceptive conduct. All agents must engage in full disclosure, but set pre-determine bidding increments at the start, to avoid non - genuine bidding on the day.
It is important to point out under the standard sales agency agreement, that services detailed in the agreement can be varied providing it is in writing and signed by both parties. Furthermore, the definition of an "auction" under the Property Stock and Business Agents Act 2002 refers to the person who claims the property submitted for sale at a certain price is named by the person acting as auctioneer. As with silent auctions there is no auctioneer. This gives real estate agency businesses the flexibility to draft terms and conditions that are not based on the unnecessary and unproductive rules of public auctions – only laws applicable to contract law and consumer law.
In closing the purpose of this article is to alert all agents, with intention of preventing any future allegations and claims of fraudulent misrepresentation in tort, when facilitating the sale of a property at auction.
Article continues on the ext page. Please click belown.
<hr class="system-pagebreak">
A RECENT COURT RULING:
Auctions — Did residential property bidder engage in misleading and deceptive conduct? (Carter &amp; Anor v Delgrove Holdings Pty Ltd &amp; Anor[2 September 2013] FCCA 783.)
This is an interesting decision from the Federal Circuit Court of Australia for its consideration of when the provisions of the Australian Consumer Law will apply to the sale of residential property.
Facts
The respondents were engaged in the business of property acquisitions for the purposes of deriving rental income. The first respondent was a company which was the trustee of a family trust and the second respondent was a director of the first respondent and a beneficiary of the family trust.
The second respondent attended the auction of the vendor applicants’ home in Western Australia. During the course of the auction, he placed a bid for $3.6 million. He was the only genuine bidder at the auction.
As the reserve price had not been met, the auctioneer suspended the auction to consult with the vendor. After gaining approval to sell at $3.6 million, the auctioneer recommenced the auction, inviting further bids. There were no further bids. The property was then knocked down to the second respondent. However, after the other potential bidders had left the property, he refused to sign the contract or pay the requested deposit asserting that he no longer wanted to buy the property.
When the respondents refused attempts at settlement, the property was placed upon the market again. Additional costs were incurred in respect of the marketing of the property. The property did not sell.
The vendor brought an application against the respondents for (inter alia) damages for misleading or deceptive conduct under s 18 of the Australian Consumer Law (ACL).
Section 18 of the ACL provides that “A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive”.
The respondents countered that the matter involved the sale of a private house without any business character and was not conduct in trade or commerce for the purposes of the ACL.
Decision
The court held that the s 18 misleading and deceptive conduct provision did apply even though the matter involved the sale of a private house without any business character.
It sufficed that the respondents were engaged in commercial activity (acquiring properties to rent out). However, despite the finding that s 18 applied, no damages were awarded because the vendor could not demonstrate that the loss incurred resulted from the respondents’ conduct.
George Rousos is director and training Consultant with <a href="https://www.itc.nsw.edu.au/" target="_blank">Industry Training Consultants</a>.
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How the auction system is being derailed by contract and consumer laws

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Home owners won't lose protections and rights when new home building reforms come in, NSW Fair Trading Minister Matthew Mason-Cox has claimed.
His reassurance comes after a recent court decision in favour of Brookfield Multiplex in a case regarding commercial property. The High Court's ruled that Brookfield Mutliplex was not liable for alleged building defects in a commercial development was a complex and technical decision,
According to Mason-Cox, the owners corporation deemed not vulnerable in legal terms, with no duty of care from Brookfield Multiplex to a commercial property owners corporation.
"I have obtained legal advice from the Crown Solicitor's Office that confirms the decision does not affect the consumer protections offered by the state's home building legislation,'' Mason-Cox said.
"This case refers to the law of negligence and involved a commercial development.
"The case does not affect the separate NSW statutory scheme of a residential development.
"Consumers continue to enjoy all the protections afforded to them by home building laws, including the statutory warranty scheme. Any suggestions to the contrary are simply false.''
A number of reforms relating to home owner rights have been passed in the Home Building Amendment Act 2014.
Some claim the reforms will <a href="/expert-insights/investing/nsw-home-owners-dodgy-construction-claims-curbed-by-government">degrade consumers' rights</a> when their building is found to be defective, with a government-granted six-year warranty for "structural defects" now applicable only for "major defects".
However, Mason-Cox says the amendments "provide significant protection for consumers and offer clarity about rights and responsibilities of builder's liabilities, particularly in relation to defects".
"The Home Building Amendment Act 2014 was passed by Parliament in May and is expected to start in mid-January," said Mason-Cox.
"Under the new Act, if a strata scheme discovers a major defect up to six years after the building has been built, then they can pursue their builder under the statutory warranties in the Act to rectify that defect.
"In particular, our reforms ensure that all home owners continue to have the benefit of a six year warranty for major defects and two years for minor defects."
Fire safety and waterproofing will be considered "major elements" of a building under the changes.
"By clarifying the nature of major defects, this key reform will save owners, and owners corporations, tens of thousands of dollars in legal costs incurred in protracted litigation," claimed Mason-Cox.
"We are also introducing changes to the licensing system, making it harder for unscrupulous builders to illegally 'phoenix', which is where a failed company starts up under a new or similar name to avoid scrutiny by consumers or NSW Fair Trading."
Individuals who were once involved in companies closed by their directors to avoid their obligations will now risk having their licence applications denied or their licenses revoked.
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Home owner rights still strong, despite building reforms: NSW Fair Trading

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The ‘cooling off period’ is a right that the buyer has when they sign the contract for sale of a residential property. It provides them a number of days to back out of the contract.
If you don’t know what a cooling off period is, you can <a href="/expert-insights/buying/what-is-the-cooling-off-period-investment-terms-explained">read more about it in our quick explainer here</a>.
The terms of the contract vary from state to state, though there are many similarities.
Consumer Affairs Victoria details six occasions where a buyer, usually, cannot cool off. They also note that a clause in a contract cannot be used to remove the right to cool off where it is allowed.
<ol>
<li>On commercial or industrial properties. 
</li>
<li>On rural properties larger than 20 hectares. 
</li>
<li>On a property sold at public auction, or within three clear business days before or after an auction. 
</li>
<li>If they are an estate agent or an agent's representative. 
</li>
<li>If they are a company. 
</li>
<li>If they have previously entered into a contract of sale with the seller for the same property with substantially the same terms.</li>
</ol>
Ensure you obtain legal advice around the nature of your cooling off period.
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Six times the “cooling off period” does not apply: Consumer Affairs Victoria

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Is e-Conveyancing going to be a way of ensuring that foreign nationals comply with Australian foreign investment rules?
The Real Estate Institute of Australia suggests that this might be exactly the case.
As part of the House of Representatives Standing Committee on Economics’ public hearings into the Inquiry into Foreign Investment in Australian real estate, REIA board member First National's Ray Ellis is to address the inquiry and detail the possibility of using e-Conveyancing to improve compliance.
This would ensure greater inter-departmental and agency communication, including with the Department of Immigration, with REIA CEO Amanda Lynch noting that later in the year the first national e-Conveyancing platform will be rolled out.
“While it is important to stress that the new online platform is heavily regulated with keen focus on protecting privacy of individuals, it will be capturing a rich set of data including identification where the transaction involves foreign nationals,” said Lynch.
“Lawyers and conveyancers will have to verify the identity of the clients they represent and reflect the client’s foreign residency status while filling the form in an online workspace,” she said.
They will reflect the paper versions of transfer in each state and territory, with the same data fields, however will store data electronic – something that matches the expectation for 85% of all property transactions over the next two years to be electronic, explained Lynch.
Monitoring could more easily be undertaken under this system.
“The transition towards e-Conveyancing provides the opportunity for easier detection of irregular activity,” said Lynch.
“The last thing that the sector wants to see is unnecessary red tape around foreign investment in Australia and here is an ideal platform that is available for all property purchases, not just those involving foreign investment,” she said, noting the REIA supports both foreign investment in Australia, and the current guidelines.
Ellis noted that the issue isn't that foreign investment happens, but that it is inadequately monitored and regulated.
"Australia has long depended upon migration and foreign investment. It’s vital to a thriving economy in a country with a comparatively small population," he said.   "However, there appears to be evidence that some wealthy foreign investors have been purchasing existing homes and leaving them vacant to avoid detection by the Foreign Investment Review Board (FIRB)."
He noted that there is currently an $85,000 fine for breaching this law.
"Foreign developer investment, when compliant with our laws, creates jobs and benefits the construction industry. However, if foreign residential property investors believe they can buy existing properties and leave them vacant, to avoid detection, this is clearly against the rules and objectives of the FIRB scheme and measures should be put in place to address this cavalier attitude," he said.
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How e-Conveyancing can help ensure foreign investors comply with rules: REIA

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GUEST OBSERVATION
Looking to ensure a smooth property transaction? Congratulations, you’ve already taken the first step, which is to begin to learn about how property transactions usually work.
The more you know about the process, the easier it is on the blood pressure. Buyers, sellers and conveyancing solicitors all agree that the best surprise at settlement is no surprise at all.
Most property transactions go through six steps:
<ol>
<li>Financing 
</li>
<li>The execution of the contract of sale 
</li>
<li>Review of searches and removal of conditions 
</li>
<li>Preparation of settlement figures 
</li>
<li>Settlement 
</li>
<li>Post settlement matters</li>
</ol>
At each step there may be twists and turns, but these too are generally somewhat predictable. 
Step one – Obtain financing 
Finding the home of your dreams and only then going to look for money guarantees anxiety. 
Most buyers seek preapproval for a mortgage before they go house hunting. That way they know what they can afford.
First time home buyers should explore <a href="/expert-insights/buying/the-national-guide-to-first-home-buyer-grants">whether they are eligible for a First Home Owner Grant scheme</a> (FHOG scheme).  
Step two – Exchange of contracts
Supposing that buyer and seller have met and agreed upon a price, step two is the exchange of contracts. The seller’s real estate agent, conveyancer or solicitor generally prepares the contract, which will set out the description of the property, price, warranties, contingencies and other terms and conditions. 
The buyer’s solicitor will carefully review the contract and negotiate any changes before the parties sign and the buyer pays the deposit. This is known as the “exchange of contracts”.
During a <a href="/expert-insights/buying/what-is-the-cooling-off-period-investment-terms-explained">“cooling off” period</a>, of a few business days, the buyer may withdraw from the agreement, forfeiting the deposit but incurring no legal penalty. 
As an aside, we advocate retaining a conveyancing solicitor rather than a conveyancer because the solicitor has the legal background to evaluate any unanticipated legal issues that may arise in the course of the conveyance.
Step three – Searches and inspections 
The buyer’s obligation to buy the property is generally contingent on satisfactory results from things like pest inspections and property searches. The buyer’s solicitor will order and review the property searches.
In New South Wales, these include a title search, zoning search, strata plan search and a historical search. If there are termites or a problem with the title, for example, the parties may choose to re-negotiate or walk away.
Step four - Pre-settlement Process
This is where the number crunching begins. Smart clients ask for an itemised list of estimated costs before the work begins. In addition to fees for legal services, a buyer should anticipate charges for inspections, searches and building insurance. 
There may also be a category of fees associated with the mortgage, including mortgage insurance, establishment and registration of the mortgage and mortgage duty. Other miscellaneous costs may include photocopying, certificate fees charged by water, utility, roads and school authorities, adjustment for council and water rates, stamp duty and the goods and services tax.
Your job, as a client, is to make a complete pest of yourself at this point. Ask to be updated regularly on costs and ask for an explanation of what those costs are if they seem mysterious.
Step five – Settlement 
This is the exciting part – when the purchase of your property is finalised.
Your conveyancer or solicitor (known as your settlement agent) will meet with your lender and a seller's representative to sign and exchange documents and cheques. The documents will then be lodged with the Titles Office to register you as the new property owner.
Do not be alarmed if at the settlement the costs change to adjust for taxes, rental fees and fees for the release of an existing mortgage. In the spirit of being a nuisance, you should ask your solicitor to estimate these costs for you in advance.
Step six – Post settlement Matters
Remember that the job is not done until the paperwork is finished, so step six involves notifying relevant authorities of the change in ownership and lodging transfer documents with the Land Titles Office. This is often done by the buyer’s lending institution, but to be secure buyers should follow up to confirm with the lender.
Property transactions involve money, quite a lot of it. Where there is money, there can be complications. You can minimise these, however, by understanding the process and insisting that you be updated regularly on costs and progress.
Rolf Howard is managing partner of <a href="https://www.owenhodge.com.au/">Owen Hodge Lawyers</a>. 
Rolf concentrates on business planning and formation, directors’ duties, corporate governance, fund raising and business succession. His major interest is to assist business owners and their financial advisers plan and implement strategies to build and exit from successful businesses.<a href="https://www.owenhodge.com.au/" style="line-height: 1.3em;"> </a>
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The six steps to ensure a smooth property transaction

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GUEST OBSERVATION
Buying a property is one of the most important financial decisions you will ever make.
It's easy to get swept up in emotions when you think you've found "the one", especially when you're a first home buyer or you've been searching for ages. But it's very important to carefully consider the legal and financial implications before you sign a contract. Thorough research could save you a fortune and ensure you avoid a serious mistake.
From the hundreds of real estate contracts I've read during my career, below are my top five legal tips to keep in mind when you're considering a purchase:
<ol start="1">
<li>
Carefully inspect the property and check the condition of everything before you sign the contract. A standard clause in the contract makes the vendor (or seller) only responsible for delivering the property to you at settlement in the condition it was on the day of sale, fair wear and tear excepted. So if the central heating wasn't working on the day you signed the contract, bad luck. Turning on all appliances and checking all light fittings beforehand will give you an accurate picture of the state of the property; you may be able to negotiate on price if something like an oven or garage door isn't working. 
</li>
<li>
Understand the zoning of the land and how it may affect your use of the property. Beware of flood paths or special building overlays, especially if there is a basement car park involved. It is prudent not to purchase a lower basement level car park in a flood zone (keep in mind that some apartments are sold with particular car parks allocated). The zoning of the land can prevent commercial or business activities being conducted. If you'd like to run a business from home, whether it's a professional service, childcare, wholesaling or anything else, always check if the planning scheme will allow it. You may require a permit or your proposed use may even be prohibited. Check with the local council if you're in any doubt. 
</li>
<li>
Beware of water easements. It is illegal to build on top of water drains and sewerage pipes without the permission of the water company. Look carefully at the water easement plan in the contract. You will not be allowed to build anything, even a deck, on top of a water easement and even if permission is granted, the water company can destroy any structure if they need access - and you are solely responsible for the cost. Look out for garages, carports and decks on the property: could they be built over water easements? If so, has permission been given? If not, the Council and water company could come knocking in the future and you'll be responsible, not the previous owner, unless you negotiate the wording of the contract. 
</li>
<li>
Don't be seduced by display units and rent guarantees. Spacious and well-lit display units are not a representation of your finished off-the-plan apartment. The fine print of the contract will make it very clear that you cannot rely on what you see in a display unit. Rather, carefully check the plans for your chosen apartment that are included in the contract. Use a tape measure to actually measure out the size of the apartment. How does it compare to your current home? What is the orientation of the apartment? Will it have enough natural light? North-facing properties are always preferable. And as for rent guarantees: these often aren't worth the paper they're written on. These guarantees are often provided by companies that are financially worthless or are wound up and closed by the time any purchaser may want to enforce a guarantee. Instead, do your homework about the rental market in the area. What rent could you achieve if all or most of the apartments in the building were all released onto the rental market at the same time? Always budget for conservative rent receipts. 
</li>
<li>
Don't rush, get advice and read the fine print. Resist any pressure from the real estate agent to quickly sign the contract. Never sign on the spot without getting advice – if possible, legal advice but at the very least advice from someone experienced in the property market. Remember that real estate agents are looking out for the vendor's best interests, not yours. If it's a private sale, take the contract home and 'sleep on it'. If there's an upcoming auction, request the contract at least a week in advance, to give you enough time to properly consider everything. Speak to your accountant and lender: can you afford it? Are there tax implications? Read the fine print and never assume that it's straight-forward. One hour of your life spent checking or consulting with a lawyer may save you an enormous amount of grief and money. Remember, buying a property is a life-changing decision.</li>
</ol>
Note: the above is general information and should not be considered as legal advice.
Kate Ashmor is president of <a href="https://www.australianwomenlawyers.com.au/" target="_blank">Australian Women Lawyers</a> (AWL) and a commercial lawyer for the Victorian government.
This article originally appeared on <a href="https://www.womensagenda.com.au/personal-freedom/investment/top-five-legal-tips-for-buying-property/201407234364#.U9GUM-OSy0d">Women’s Agenda</a>. 
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