In 2026, every contract for the sale of land in New South Wales is influenced by a Supreme Court decision handed down in late 2025. The case of Ahmau Developments Pty Ltd v Preet exposed a critical inconsistency in the 2022 standard form Contract for the Sale of Land—specifically, the overlap between Clause 28 (off-the-plan/section 10 contracts involving unregistered plans) and Clause 29 (general conditional contracts).
Justice Parker found that developers could use Clause 29 as a “back door” to terminate contracts that should properly fall within Clause 28. This created a significant risk for buyers. Following the decision, the Law Society of NSW and the Real Estate Institute moved to implement a revised 2026 standard contract, which all buyers and sellers should now understand.
Julian and Renee at Flash Conveyancing regard this as a key development. The Court’s findings have led to three critical reforms in the 2026 edition:
- Clause separation: Matters governed by Clause 28 are now expressly excluded from Clause 29.1, preventing overlap and limiting misuse.
- Higher obligation standard: The vague requirement to do “everything reasonable” has been replaced with “whatever is reasonably necessary”, raising the bar on developers to progress registration without undue delay.
- Stronger buyer remedies: Specific performance is reinforced, reducing the ability for developers to argue that a contract is frustrated simply because a date has passed.
As a result of Ahmau Developments v Preet, contracts now require closer scrutiny. The 2022 edition contained loopholes that could expose buyers, whereas the 2026 edition introduces stronger safeguards.
Key practical impacts include:
- Termination risk is now more tightly controlled, with Clause 28 clearly governing off-the-plan arrangements.
- The “reasonably necessary” standard limits minimal-effort compliance by developers.
- Developer discretion to unilaterally rescind contracts has been significantly curtailed.
There has also been an important update to the statutory cooling-off notice under the Conveyancing and Real Property Amendment Act 2025 (NSW):
- The revised cooling-off notice may be used for contracts exchanged between 15 August 2025 and 31 May 2026.
- From 1 June 2026, the updated notice is mandatory for all residential contracts and option agreements.
Flash Conveyancing Advice:
Ensure you are using the 2026 edition of the contract. If you are purchasing off the plan, confirm that Clause 28 protections are fully effective and that Clause 29 cannot be used as a workaround. The 2022 edition should be approached with caution, as it does not adequately address the risks identified by the Supreme Court.
Flash Conveyancing, led by Julian & Renee, are specialists in property transactions across New South Wales. With extensive experience across councils including Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby and Parramatta, they provide a personalised and reliable approach to every settlement. Whether you are buying or selling across Greater Western Sydney, your transaction will be handled with care, clarity and confidence.