Hi,
I paid 10% deposit for an off the plan unit with no settlement date or sunset clause due date (at the time I dropped by & there was building activity so I truly believe it can't be long). Its been months and still no action on buildings.So what's the default date if there's no date on the contract? I have a letter from the vendor that say I may take my deposit and any interests accumulated. I have spoken to the person who sign this letter who has advised that due to the Sunset Clause I cannot get my deposit back.
Nowhere on the contract is there a settlement date or a sunset clause period. So what are my legal rights regarding getting out of this contract? They can't hold me in the contract say if they never finish building?
I have a finance preapproval letter, which is only valid for 12 months. If they don't finish by then I can say that its too late, I cannot get the finance no more? (ie I don't want to get the loan no more and get out of the contract that way?)
Any help is appreciated.
If I was in your position I would definitely be visiting a good solicitor to see exactly what my options are in regards to the contract you signed. It will take the guess work out of your decision. Others here may have viable options and opinions for you, but in my own opinion, spending some dollars could give you the answer with legal backing.
Martin
It sounds like the vendor has given you two sets of advice – the letter saying you can get your deposit back and the contract that says you can't. If you were to take this matter to court, you would be bound by the contract, not by the letter. Was the letter before or after you signed the contract?
Ask the vendor to tell you in the contract where the sunset clause is. Then, if you still don't understand it, go and get legal advice.
Cheers
K
Hi
Thanks for the replies so far, I am having my lawyer look at it. I got the letter after the contract was signed. I have looked through the contract myself and cannot find any time frame or specific date under the Settlement or Sunset clause of the contract which I find unusual in itself. I will also be contacting the local council regarding the building plans lodged with themThanks all
often the sunset clause is worded like "contracted must be completed within 14 days of registration of titles" etc. Is there anything like this in the contract?
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
Hi Terry,
This is what's in the contract:
This Contract is subject to and conditional upon the Seller registering the Plan under the Land Title Act 1994 and establishing the Scheme under the Act on or before a date that is 3 years after the Contract Date ("the Sunset Date").
13.2 Seller's Obligations
The Seller must take all reasonable steps to register the Plan and establish the Scheme by the Sunset Date.I have gone through the contract and cannot find any date mentioned in the contract, so my next logical step is getting in contact with the the councils/government body to find out when the plan was registered/approved.
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