All Topics / Help Needed! / Pricing mix up by developer for off the plan purchase

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of laiyee2000laiyee2000
    Join Date: 2007
    Post Count: 4


    I would like your opinion on the following matter:

    On 8/10/2007 we signed a booking reservation form for
    unit B2.02 (91 m2 with park view) for $375,000.

    On 13/12/2007, the developer has come back to us
    saying they had a pricing mix up and that our unit
    should have been $430,000.

    I have a reservation agreement clearly stating the
    price and unit number and also an email from the
    developer acknowlegding they had a mix up.

    As a consumer, what are my rights? I have been told
    only a contract of sale holds any weight in Victoria
    property law, and since I didnt sign one, I dont have
    a case.

    Doesn't the reservation agreement count as some form
    of written contract? The developer is offering an
    alternative unit (without park view) for $375,000.
    Should I be compensated in  any way if I decide to go
    ahead with the purchase?

    Profile photo of propertypowerpropertypower
    Join Date: 2006
    Post Count: 312

    If the contract has not been signed by both the parties, I think it will be a challenge to get the developer to change. Maybe you can ask the developer to tell you the prices of adjoining townhouses. Assuming they have similar finish and aspects, you can see if there is a genuine mix-up or the developer is just trying to get some more money out of you.
    Good luck and keep us posted on progress.

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    I am no lawyer, but believe you do not have a valid contract unless the vendor has signed and you have the contract with their signature on it. But there are exceptions to this rule so discuss it with a lawyer.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide)

    Profile photo of laiyee2000laiyee2000
    Join Date: 2007
    Post Count: 4

    Unfortunately, i dont have any legal rights to this issue. We have decided to take the alternative unit and the developer is giving 5,000 of the sale price to compensate.

Viewing 4 posts - 1 through 4 (of 4 total)

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