Off the plan home - settlement date issues

Ldinesht on 16/08/2017 - 20:23

Hi Ozbargainers

I purchased an off the plan property in July of 2016, I was advised that the property would be completed by December of 2016.
I was advised of continuous delays and finally, I was provided with a formal email from my conveyancer advising of an estimated settlement date of 17th of July 2017.

I was not advised of an update by the builder or my conveyancer, I had to go to the property myself to speak to the builder who advised me on the spot that he will be submitting the papers “soon”.

I had organized for the rental property’s end of the lease and therefore have had to move out of my rental property and am living in a serviced apartment with all my belongings in a storage unit.

My conveyancer has not been able to help me as the sunset date on the contract of sale is July of 2018.

Given that I was misled on the settlement date, even if it be an estimated one of that, what are my rights on this matter? Who could I speak to on this matter to hold my builder accountable?

Many thanks
Dinesh

General Discussion

Comments

  • YRT on 16/08/2017 - 20:39
    +3

    You need to understand your contract clauses / speak to a lawyer. Conveyancer's job is to register the property under your name; they don't (and shouldn't have) give two hoots about the nitty gritty details you should've known yourself. They are paid to do the paperwork only, anything more they do, consider it a bonus to you.

    Usually, contract is written in a way that vendor / seller will never lose out in any situation. Which means unless you cannot backout the deal without their consent, but they can do anything the like as set out in the contract. At least, that's how Victorian section 32 works to my understanding.

  • TheBilly on 16/08/2017 - 20:43
    +2

    Sorry to hear that is really sucky for you. Unfortunately it is quite common in NSW with apartments being purchased off the plan. I highly doubt the contract has any terms that will provide you with any recourse, but definitely get a lawyers advice. Maybe also try finding a new rental apartment and dont hold your breath on the house being finished early or any big financial compensation coming your way.

  • djkelly69 on 16/08/2017 - 21:06
    +1

    I would be very surprised if your conveyancer did not discuss the large potential for settlement delays with an off-the-plan purchase, particularly if you were expecting it to be done in December 16 and the sunset date is July 18.

    I also don't understand how you would hold a builder accountable for giving you an estimated settlement date? It is just that, an estimate.

    As with basically all off-the-plan contracts, your only option is to wait for it to be finished.

  • garetz on 16/08/2017 - 21:23
    +1

    I wouldnt be surprised if they kept pushing it back, till the 2 year mark, and then withdrawing it from sale. It's been happening alot lately.

  • PAOK11 on 16/08/2017 - 22:27

    Get a good lawyer . My advice is to start looking for a lawyer because they have taken much longer than estimated and I would be proactive and start talking to a lawyer who can represent you, even if you don't need him right now. If you have a subject to finance clause I would consider pulling out of the contract. Also did you get a professional to look at the contract before you signed it ?

    • dinesht on 16/08/2017 - 22:39

      I only got the conveyancer to look at the contractor before signing it. I will start speaking to a lawyer as per your advice. thank you.

      I was advised last week that the property has been given an occupancy certificate, I've seen the property my self and it is actually complete, I'm just not sure what the issues are.

      • PAOK11 on 16/08/2017 - 22:42
        +1

        Your property might be ready but all the properties need to be ready before settlement begins.

  • Euphemistic on 16/08/2017 - 22:58
    +1

    This is one of the major problems with buying off the plan. It is almost normal for builds to go over time. So far you are lucky they haven't reached the sunset clause date and decided not to sell to you at the original price and will sell to some one else at a higher price.

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