Contract Compliance In Challenging Times

As market and liquidity conditions continue to change so too does the focus on the integrity of contracts, especially presale commitments, in projects - both existing and those looking for funding.

Background

Most Australian jurisdictions have consumer protection legislation that impacts on the sales process for projects sold off the plan or otherwise. Increasingly these legislative measures are the focus of contract termination disputes driven by the challenging market conditions. Compliance can offer an escape route on site acquisitions or commitments and review of obligations against consumer protection legislation is fast becoming part of mitigating exposure.

Moreover, in a market where liquidity is short, the sale of a property holding may not be the best strategy in an insolvency or work out arrangement and the banks and others are looking at the viability of holding assets or developing them. It's fair to assume that sales processes will be scrutinised by