All Topics / Help Needed! / Cancelling Cash Offer Development Purchase

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of sam2009856sam2009856
    Member
    @sam2009856
    Join Date: 2006
    Post Count: 79
    October 11, 2007 - 6:35 am

    Hi Everyone

    I purchased a duplex block of land in January 2008 off the plan.  Paid a small deposit $10,000, cash offer.  To settle January 2009.

    I made a cash offer because that is all the developer would accept.

    My intention was to build two townhouses and hold them for the long haul.  I have changed my mind and realised I am unable to afford to go through with the purchase and to tell you the truth, it was a mistakd to ever sign the contract.

    The developer is well within their time frames, therefore I am unable to used conditions 13 on the standard Joint Form and Conditions.

    Can anyone please tell me ways I can exit the contract without getting into legal problems?

    Thanks for your time!!

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 11, 2007 - 8:35 am

    Sounds like you maybe locked in. You may only be able to get out if they let you, or if one of the conditions are not met. With property purchased off the plan there are often clauses in the contract which state that if the title is not registered by a certain date, then either party may pull out without penalty and get their deposits back. If the price has risen and the blocks are selling good, the vendor may even be happy for you to pull out as they can resell for a higher price.

    Another option is to onsell the land before you settle. You still have a year and a bit left, so it will probably go up in value before then, and you may even make a small profit.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of sam2009856sam2009856
    Member
    @sam2009856
    Join Date: 2006
    Post Count: 79
    October 11, 2007 - 2:45 pm

    Hi Terry

    The develop is smack bang on time frames… the block has not gone up, in fact, half of them from the same development are still for sale.

    This is a big learning curve for me!!!

    Profile photo of StumunroStumunro
    Member
    @stumunro
    Join Date: 2006
    Post Count: 49
    October 11, 2007 - 9:36 pm

    What area is it in? If you are worried about it find someone to buy you out for the 10 grand you put in and to take over the contract.

    Profile photo of m.pulleym.pulley
    Member
    @m.pulley
    Join Date: 2006
    Post Count: 45
    October 11, 2007 - 11:54 pm

    Relax a little,
    you still have over a year before settlement,

    You could arrange to have townhouses pre-sold off the plan on the block.

    Hold on till close to the end and then find a buyer.

    Find a partner for the project.

     Is there a clause for early completion?

    Most of all relax you still have plenty of time to sort something out, but don't leave it till the last minute.

    All the best,
    Mark

    Profile photo of sam2009856sam2009856
    Member
    @sam2009856
    Join Date: 2006
    Post Count: 79
    October 17, 2007 - 3:48 am

    Hi There

    LOL relax :>  setlement is four months away… and the Perth market is over heated… no one is buying and flipping it out of the question… was so silly and it is great that i have learnt this lesson.

    I have just been advised the I paid at least 75K too much for this block..!!!

    I am in the process of seeking legal advice..

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