Including unfair contract terms (UCT) in commercial contracts has always been a violation of the Australian Consumer Law (ACL). Since November 9, 2023, the definition of UCT has been expanded, and penalties for any such violations have been increased. This directly affects contracts related to real estate.
Penalties for violations by businesses are particularly severe, with maximum fines of AUD 50 million per breach, or three times the value of the benefit gained from the violation, or 30% of the adjusted total turnover during the violation period, whichever is greater.
This affects a range of real estate contracts, including off-the-plan contracts, house and land contracts, and put and call option agreements, which may be impacted by the new UCT regime.
Ensure Legal’s property and commercial clients should review their documents and consider whether the new UCT laws apply.
