Property 101: NSW swimming pool provisions scheduled to make a splash

GUEST OBSERVER

Despite initial predictions of delays to the commencement date for the new swimming pool certification regime under The Swimming Pools Amendment Act 2012 (NSW), the day for compliance is rapidly approaching.

Compliance and Prescribed Documents

In addition to the requirement to have a pool or spa registered on the NSW Swimming Pools Register, from 29 April 2016 owners must include one of the following as a prescribed document attached to a Contract for Sale with respect to a pool or spa on the property:

1. a valid certificate of compliance;

2. an occupation certificate; or

3. a certificate of non-compliance.

Strata Schemes and Off-the-plan Contracts Exempt

Strata Schemes and off-the-plan contracts are notably exempt from the requirement to include a required certificate as a prescribed document. Strata Schemes remain exempt provided they have two or more lots and the off-the-plan contracts are exempt provided they include a sunset clause.

Who Else is Affected

• Landlords: must provide their tenants with a certificate under the Residential Tenancies amendment (Swimming Pools) Regulation 2016.

• Purchasers: where a certificate of non-compliance is attached to a Contract for Sale, the purchasers may have time restrictions as to rectification works. Please contact us if you have a pool that is non-compliant with current regulations.

Option Deeds

A warning for owners and developers both buying and selling properties under Option Deeds – it remains to be seen how the act will address Option Deeds which were entered into prior to 29 April 2016 with a date for the exercise of option falling after 29 April 2016.

Under an Option Deed whereby the option is exercised after 29 April 2016, a Contract for Sale may not include a certificate as required under the Conveyancing (Sale of Land) Regulations 2010 as a prescribed document, meaning that upon the exercise of option after 29 April 2016 owners may have breached the Contract for Sale giving rise to the purchaser’s right of rescission.

For more information from Macpherson Kelley click here.