hi there all i know this might sound stupid but if ive signed a contract for a deal and settlement is taking longer then expected and the area is going for a down hill slide what would i need to get out of a contract i know i can if the developers take longer the 18months what else would be writing in the contract would you expect ? i am new to this and am feeling really not compfterble with the deal i have haven through a buyers agent iam doing my own research and looking for ways out and move on i think any info would be so helpfull thanks alot danielmattnzParticipant@mattnzJoin Date: 2007Post Count: 574
So is there a sunset clause that is for 18 months?
With a sunset clause is that on the developers side of things or mine ?Reno101Participant@reno101Join Date: 2013Post Count: 26
Hi Daniel , did they give you an exact settlement date ? Look into a sunset clause , and or any non delivering of end product , ie body corporate items , do you have a solicitor who can look into the fine print
Yes I do have one I will be in contact with them and see what they say thsnks mateJosh AthertonMember@josh-athertonJoin Date: 2011Post Count: 269
your solicitor will be the best for this. Sometimes a breach of contract can be found on very minor technicalities when issuing the contract for example. However 18 months later it can be hard.
OTP contracts are generally executed fairly well as developers dont want buyers to be able to change their mind half way through. the sunset clause applies for both parties. If they have gone past the date then could have an out fairly easily
Good luckJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
I agree with Josh on this – the best person to seek advice from is your solicitor. Unfortunately most OTP contracts are water tight and very difficult to get out of – hopefully they can discover a way.
JamieTerrywParticipant@terrywJoin Date: 2001Post Count: 16,173
Often there are sunset clauses which allow either party to rescind in something, such as registration of strata plan, isn't done by a certain date. I successfully got out of a long off the plan contract in VIC many years ago because they were so slow and prices had not increased – probably dropped.
Talk to your lawyer asap.vagirl2012Participant@vagirl2012Join Date: 2012Post Count: 47
Def see your lawyer as soon as possible. You will need someone to go through the contract with a fine tooth comb. Good luck.rhino101Participant@rhino101Join Date: 2008Post Count: 31
If you're talking about your Gladstone place, despite the current drop, it is still a booming town with plenty of diverse long term industry and the property market will balance itself back out in time. If you end up not being able to pull out, the place should still be a reasonably stable long term investment, the gains just might not be as quick as initially hoped for.
BTW – they seen to be moving again in Oasis – 7 or 8 houses now up.
thanks ryanrhino101Participant@rhino101Join Date: 2008Post Count: 31
No worries, looks like they have really picked up the pace in there over the last week or so – houses and earthworks going on left right and centre.Josh AthertonMember@josh-athertonJoin Date: 2011Post Count: 269
The construction of new houses is not really an indication of a booming property market, it is more an indication to the success of property marketers.CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404Josh Atherton wrote:The construction of new houses is not really an indication of a booming property market, it is more an indication to the success of property marketers.
So true. I remember Sydney 2002. Developers were building like crazy to catch the craze going on. Resulted in some shoddy work due to the rush and then the boom ended. People got caught with a property finished after the boom and not worth what they predicted. Plus a declining market and then years of no growth.
Unless you can predict a property boom before it starts I'd be wary of OTP.
You must be logged in to reply to this topic.