Hi all,
We bought a block of land off the plan prior to registration, selling our house to do it, only to hear that the developers now want to pull out of the contract presumably because they want to sell it for a higher price. This has happened to the whole subdivision thus affecting 50+ buyers, who I`ve heard made similar sacrifices to us, by selling their homes to be able to build.Just wanted to know if anyone has experienced this situation and what resulted from it.
Thanks
ClintI guess the ‘sunset period’ has expired?
Some developers deliberately do up contracts with so that they can do this. I don’t know what you can do about this unfortunate situation.Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes that`s exactly what they have done Terry,
I know some other parties have placed caveats and planned class actions, I know the subdivision will soon be registered. I just wanted to know if there is any hope of still settling on this block and whether these greedy developers will get away with it.Clinton
It may be difficult to get the block now, but if you all stick together you can make it hard for the developers. I myself rescinded a contract for a unit I purchased off the plan after the sunset clause had expried (didn’t go up in value enough), and the developer could not do anything about it – they had to send back my deposit bond.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Can you say who the developers are? Or at least what state?
As I’m just about to purchase some units and land Off the Plan and don’t want to be caught by the same Co.
Thanks
Hi,
It`s in Qld, on the coral coast, be very careful
apparently there has been a lot of this going on in recent times.Very dodgy people!!!Had some friends in a similar position. Only they didnt sell their house to finance it. They did however not bother to look for more land as they believed they had their land. Therefore price they paid for their new block was far greater then what they would have paid 6-12months ago when they put the first contract on.
Dissappointing for them.
Hi – I understand you are in Queensland. I have an insight for people in WA concerning s 20 of the Town Planning and Development Act. Basically a contract to buy/sell land in WA is not valid where the land in question is not a “lot” and where the contract is not made subject to s 20 of the Act. It is something that can crop up on a regular basis. I hope this helps someone. cheers —
We paid a 5%deposit on land off the plan in early July 2003. Supposed to settle November.In February agent rang to say deposit had to be 10%. “Values” had jumped by 25% in the interim, so it was sitting on a nice little capital gain, (462% gain on deposit) and we also thought developer must be trying to squeeze us out. Agent said, “no, it’s because his bank is requiring higher deposits in hand to continue finance”. We took the deposit back and parked it in an offset account and did a deposit bond instead.(did the calcs and it works out cheaper for us) We drive near the area on our daily trek to work, and the sitework is started so maybe it will settle by July this year!
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