Homeowners Unaware they are Giving Away their Property Rights
The State Government is moving to make changes to consumer property laws after it was revealed that homeowner residents that signed solar panel ‘rent-to-buy’ contracts had ended up having the contractor placing a caveat on their property.
A caveat is a legal document or clause which can stop the owner from securing a mortgage, renovating and even selling their home unless they clear the debt that’s in the signed contract.
The issue was brought to light after some property owners who had signed contracts for solar panels were not told of the clause in the contracts, which allowed the solar panel supplier to file a caveat on their house in the event that the bill was unpaid.
John Rau, Business Services and Consumers Minister, said that the government will introduce a bill into Parliament which will require any charging clauses to be witnessed and signed separately from the rest of the supplier contract to eliminate confusion for homeowners.