Land Not Settled after 4 Years - Looking for Advice

Lhar0p on 02/06/2021 - 09:48

Hi All,
Looking for some advice here as I'm not sure what to do at this point.
I kept a 10% deposit (close to $30,000) for a block of land in Melbourne, which was supposed to get titled in 1 year.
After 4 years and Im still waiting,
The developer now says they cannot give me a settlement date as they are having issues with lying pipes and drainage as it's hard to get permits from other estates/Council.
In the contract, they have not specified a clause in regards to a settlement date so I guess they have covered their a**. (I know I should have not signed it)

The only options they give me:
- They will return the deposit (sunset clause)
- Continue to wait
- I can swap to another block

If I get the deposit back I can't afford to buy new land at today's prices.
The swap of land they are suggesting is to swap to land in their current release, which is today's price. I can rather get the deposit and buy somewhere else

Either way, I'm losing money if I want to keep/buy. As I paid for a land price of 4 years prior

Is there a way I can get some compensation for the loss of value/money?

Home & Garden

Comments

  • mini2 on 02/06/2021 - 09:59
    +1

    What does your conveyancer say?

    • har0p on 02/06/2021 - 10:09

      He said I dont have any legal right I can go buy as they haven't specified a date

      • mini2 on 02/06/2021 - 10:30
        -3

        Get a second opinion elsewhere outside of OzB?

  • EightImmortals on 02/06/2021 - 09:59
    +1

    Dammit, beaten by 'that' much.. :)

  • djkelly69 on 02/06/2021 - 09:59

    What did your solicitor/conveyancer say?

    Edit: Hahaha, it appears everyone is on the same track

  • Chandler on 02/06/2021 - 10:01
    -5

    So you want compensation because it hasn't settled, but it isn't overdue as the contract you signed had no date.

    What did the developer say when you asked for compensation?

    Oh, you didn't ask because you know what they'll say.

    But you asked your question here…

    Member Since 29/09/2016

    … knowing what we'd say…?

    • har0p on 02/06/2021 - 10:20
      -1

      Hi OP, I asked him. You guessed right. He said nothing they can do.

      With a Swap of land they will not reduce anything as well

      • Muzeeb on 02/06/2021 - 10:48
        +8

        Aren't you the OP?

        • SF3 on 02/06/2021 - 11:39

          Next Question from OP, what is OP.

          EDIT: Looks like another sleeper account (and didn't pick up the lingo), 5 years for 1st comment/post vs User 32, 14 years.

          For reference a post on some common acronyms on OzB

  • robbyjones on 02/06/2021 - 10:04
    +4

    A conveyancer isn't going to give advice, they're there to see the contract through.
    It's a decision only you can make OP. If you wait it out you may never get the land sorted. If you get your deposit back you may have to pay todays prices but it's better than it'll be in another 4 years. Why don't you see if you can negotiate a discount on one of their other blocks of land.

    • har0p on 02/06/2021 - 10:22

      Thanks OP, I tried to negotiate on a different block They said They can reduce $2000 on a block which is now $368,000 which for the same size of block I got for $320,000

      • netjock on 02/06/2021 - 12:29
        +4

        Put it on OzB market place or gumtree. If someone paid you $30k to bail you out for a block that is now worth an extra $50k provided they can get it titled. Bargain of the century.

  • netjock on 02/06/2021 - 10:08
    +11

    As I paid for a land price of 4 years prior

    You paid 10% on the price of land 4 years ago. Don't mess it up.

    If say land prices have gone up 5% per year. Assuming on a $300k piece of land you are making good money. If you say you can't afford to buy the same land if you got your deposit back you must have made $100k+ ($400k total value) what are you complaining about making $25k a year on $30k you've put down?

    One alternative is to contract on sell at the current price and let some other person wait it out. There will be no shortage of suckers.

  • garetz on 02/06/2021 - 10:28
    +6

    Seems like you screwed up, they can hold you to ransom for pretty much as long as they want while holding onto your money. Take your money and run, could be worse, you could of lost 30k instead. You might lose out on the price difference of the block of land, but at least you know these people are not trustworthy, and not to deal with them again in the future.

    • har0p on 02/06/2021 - 10:33

      Yes thats where Im leaning towards as well

  • Ocker on 02/06/2021 - 10:32
    +10

    I would be curious as to whether the developer is just stringing you (and the other buyers) along in the hope you will cancel the deal and they can pocket the gain in value.
    Have you done any checking with the authorities to see just how genuine the developers claims are?

    • har0p on 02/06/2021 - 10:37

      Hi, I have checked with my conveyancer, and he says since I have signed, it's legal.

      So does this mean they can do this to anyone as they please and get things done in their own accord? There should be somewhere I can go to pledge my case as its not right.

      • garetz on 02/06/2021 - 10:40

        Right or wrong is irrelevant, you are arguing semantics , the law trumps any of those, you signed the contract so nothing you can do about it.

      • Ocker on 02/06/2021 - 10:51
        +1

        Did you conveyancer alert you to the fact the contract did not contain a completion date?
        CAV state "They can be engaged by a buyer to check the vendor’s statement, advise on the terms and conditions in the contract of sale and conduct searches."

        • har0p on 02/06/2021 - 11:02
          +3

          I didnt contact a conveyancer before signing the contract :(

  • kusama on 02/06/2021 - 10:47

    You mentioned sunset clause, can they potentially use that on you when they sort out their issues and then sell it for profits?

    I've been screwed by that on a house/land deal.

  • Lexus101 on 02/06/2021 - 10:48

    Without knowing the specifics….who is the builder, land owner, council etc.

    4yrs is a very long time in my books, the land could be titled next year or in the next 5 years, who knows?

    I would get my money back and go buy somewhere else. It does seem like they have issues with it and sounds like an uphill battle.

    $30K is a lot of money. You alone have to decide what it's worth to you.

    Good Luck on your decision.

  • hurtsville on 02/06/2021 - 10:54

    You may want to contact fair trading, they do have some protection in place for people buying off the plan so developers don't screw them. Would probably be good for you to find out if the developer were to go bankrupt tomorrow, would your 30k be safe?

    Be proactive and more forward rather than the reactive sucker you've been for 4 years. Maybe go in at the developer and demand a big discount on another block of land or you'll kick up a big fuss.

    • har0p on 02/06/2021 - 11:04

      Thanks, I tried contacting them a few times. But they are not supportive at all.

      • sparkles on 02/06/2021 - 11:32
        +6

        Pick up what @hurtsville is saying, and go next level. Contact Fair Trading, contact the council to find out the truth, push much, much, much harder. You are rolling over at every turn and they can probably see that. If neccessary, get someone hardcore on your side to help you deal with the developer. Sadface emoji's don't solve problems, being a hardarse does.

        • hurtsville on 02/06/2021 - 11:47
          +1

          Yeah cookie monster knows what's going on, they are totally palming you off. Its not even a matter of when they'll get council approval, its if they get council approval. I wouldn't risk waiting another x amount of years.

          I got a good example of being a proactive though (aka be a pain in the arse).

          When I bought my off the plan apartment many years ago, they had an external elevator shaft running outside my bedroom window as higher levels weren't complete yet. Workers would go up and down from 6am onwards. After many back and forth emails to their senior management, I threatened them with legal action (total bluff) so they gave me a 2x2m storage cage in the basement to shut me up.

          Hate to see someone else getting screwed by developers but you've got to harden up, don't take no for an answer.

          • Drakesy on 02/06/2021 - 14:14

            @hurtsville: I hope you already were provided a storage cage as is required in the apartment code.

        • Quantumcat on 02/06/2021 - 13:28
          +1

          Username does not check out lol

          sparkles

          being a hardarse

          • sparkles on 03/06/2021 - 06:11
            +2

            @Quantumcat: Heh.

            I'm seeing an untapped small business potential: Hardarse For Hire. Introverted? I'll shout for you!

  • rambutann on 02/06/2021 - 10:58
    +2

    Just out of curiosity, did you engage a conveyancer prior to signing a contract, and did they look over the contract before you signed it? They would have told you to include a time clause if they were a good conveyancer.

    • har0p on 02/06/2021 - 11:03
      -1

      I know now that I should have but I didn't at that time :(

      • rambutann on 02/06/2021 - 11:08

        Right.. that sucks.. sounds like you need to just keep waiting until it settles.
        Maybe think about it as an investment property? Buy another place, then sell this place as soon as its built (well, I think you'd have to wait 12 months because of capital gains tax, so maybe rent it out for a year) - take the profits and put it towards the new place?

  • JIMB0 on 02/06/2021 - 11:35
    +4

    They want you to back out the deal in frustration. Then they will complete the development and sell it to someone else at today's higher prices. They're just playing a game, probably not applying for the permits properly so that they get rejected.

  • Drakesy on 02/06/2021 - 11:44
    +5

    Sounds like the developer is going for the sunset clause to get the land back.
    Having worked in development the excuse that "they are having issues with lying pipes and drainage as it's hard to get permits from other estates/Council." is complete bullshit.

    We'd churn blocks out over the space of 3-6 months with a maximum of 1 year to get certified (worst case scenario). I'd be thinking that they're holding out and using your money to fund their development until you give in and leave. Did they at least give you a guide on when your area would be built/released?

    TBH i'm surprised they'd let you put down money on a block yet to be released/that's been set up, In WA they'd only sell the stages that were getting developed in the next 6-12 months.

    • har0p on 02/06/2021 - 11:52

      Hi Drakesy, should I give is leave?

      • Drakesy on 02/06/2021 - 11:55

        How much do you value your $30k?
        But unfortunately in the case of a rapidly rising market/overcooked on investors, the sunset clause is in their favour.

        Could potentially on sell the right?

  • pharkurnell on 02/06/2021 - 11:51
    +6

    Who the hell would wait 4 years?

    • Big Lenny on 02/06/2021 - 11:57
      +6

      OP

    • netjock on 02/06/2021 - 12:26

      I've seen agents trying to sell land that won't get titled until late 2022. It is all predictions.

      Sounds like the developers have better opportunities selling the existing blocks than getting to OP's block way down the other end. Using OPs 30k as basically free money.

      It depends on whether you need the money putting $30k down and now it is worth and extra $50k (OP mentions their price agree is $320k and alternative block is currently priced $370k but they need to pay the difference). $10k return on $30k per year, 33% where else you going to get an investment like that.

      • pharkurnell on 02/06/2021 - 12:55
        +1

        Using OPs 30k as basically free money

        I see this too..
        I also see his block is now worth more $$$ and they want him to walk away and they resell it at higher price.

        But theres no way on this planet or any other planet I'd wait 4yrs to see I've been stooged.

        • netjock on 02/06/2021 - 13:02
          +1

          Depends on the contract.

          You are a secure creditor if they go bust. If you have maps to show the land boundaries. Problem if they go bust is whether you are on the hook for $320k less $30k plus cost of laying down the utilities.

          OP mention there was council issues, OP needs to investigate whether it is true (all correspondence should be in writing). If it isn't developers don't have a leg to stand on. If the block is not provisioned with utilities and developers have provisioned blocks like 50 meters away then it is not reasonable for them to just delay it indefinitely.

          • pharkurnell on 02/06/2021 - 13:04
            +3

            @netjock: They are playing OP like a guitar… Hes rolled over numerous times it sounds like, and they are making the most of it.

  • rektrading on 02/06/2021 - 13:11
    +1

    Investors that have a high conviction in their decisions don't mind waiting for four or ten years for their assets to give a good return.

    Investors that held on to their digital asset since 2017 was rewarded with a +200% gain.

    • mskeggs on 02/06/2021 - 17:31

      I have some Worldcom stock I will sell you that I have only been holding since 2001. Since I am a conviction holder it most certainly will rise eventually.

  • FloatingPoint on 02/06/2021 - 13:43
    +1

    I would get the deposit back right away and cut my loss if I'm you.
    The developer is likely to use the sunset clause to kick you out anyway. Why keep waiting and have your 30k cash sitting there do nothing but depreciating?

    btw I bet the title with all those pipes and drainage issues will be magically resolved the very next day after your contract terminated.

  • geekcohen on 02/06/2021 - 14:20
    -1

    I was in a similar position to you, it was about 3 years in the end. It isn't in Lara, VIC by any chance???

    Anyway, it eventually titled and came through. But, I would definitely get your deposit back and go elsewhere. $30k is 50% of a $600,000 house!

    Yes, the developer could sell it for more once you bail, but you don't want to continue putting up with that crap. 3 years was long enough for my wife and I.

    Get out and move onto something else.

    • djkelly69 on 02/06/2021 - 17:27
      +4

      $30k is 50% of a $600,000 house!

      Mmmm not quite…

  • shaybisc on 02/06/2021 - 17:16
    +1

    If the land has not been settled, i.e. growing of crops or building of permanent dwellings, it is terra nullius and you can claim it for free in the name of the Crown.

  • voiletmay on 03/06/2021 - 08:08

    Wow, I would get my $30K back and move on with my life and find something else.

  • 82norm on 03/06/2021 - 08:08
    +1

    Have you gone to council to enquire if there are any holds ups regarding the block of land? Sounds sus.

  • HeWhoKnows on 03/06/2021 - 09:33
    -6

    What sort of question is this OP?

    What do you expect?

    The developer has been very reasonable and offered you 3 excellent options !!!
    Now pick one of them and leave us alone.

    Unless of course you are so hopeless as the be unable to make that choice either.
    In which case i suggest you swap to another block given the way real estate prices are increasing

    Seriously I am sick of such unreasonable posters expecting ridiculous outcomes.

  • mhasan on 03/06/2021 - 11:53
    +2

    I would say waiting is your best option. You have accumulated equity on that land in the last 4 years. My land settlement was delayed 3 times and after 3 years when it finally got released the bank evaluation came back around $70K higher than the original price. I now have almost $80k equity in that land. I know it is very frustrating but keep the land.

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