In September 2021, Holman Webb published an article highlighting the decision of His Honour Justice Darke in the matter of BP7 Pty Limited v Gavancorp Pty Limited [2021] NSWSC 265: Put and Call Option Agreements in Residential Property Transactions.
There has now been a legislative response to this decision.
The Conveyancing (Sale of Land) Regulation 2022 commenced on 1 September 2022.
Regulation 17(3) of the 2022 Regulation provides that “section 66S of the Act does not apply to a contract made in consequence of the exercise of an option to compel the purchase of land”.
This effect of this amendment is that there is no cooling off period for the sale of residential property made in consequence of a Put Option.