All Topics / Legal & Accounting / Need Help – Off the plan damages

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  • Profile photo of Janes188Janes188
    Participant
    @janes188
    Join Date: 2020
    Post Count: 0

    Hi, I am living overseas and paid 10% deposit for investment property. But, somehow the Australian regulation changed for foreign investors and I cannot apply for mortgage anymore and on top of that Im also having financial difficulty, hence I do not have funds to settle the rest on time (Feb 2020). What I know is my 10% deposit will not be returned and Im willing to let it go. Now, 10 months later (Dec 2020), I got a letter from developer’s lawyer stating that they decide to affirm and ask me to complete the payment in 2 weeks time with interest. May I know whether anyone have ever been in this kind situation? Whats the result? Any advice on how should I deal it with?
    Thanks, Jane

    Benny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Jane,

    Wow, it is awful when laws change and the results of your earlier decisions become a minefield through no fault of your own.  I don’t know the answer for you, Jane, but I wanted to say there are a number of very smart people who are members, and I am hopeful that someone might have an answer that they can share with you.   I will leave it there right now, as I can offer no more than a little hope for you, but I do at least that – I hope things work out for you in the best way they can.

    Benny

    Profile photo of Janes188Janes188
    Participant
    @janes188
    Join Date: 2020
    Post Count: 0

    Thanks Benny, waiting for others to comment. Really need some advice and insights on this.

    Cheers, Jane

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi Jane,

    I’m sorry to hear about this.

    I am not a lawyer, and as this is a contractual matter, it is important to know your rights and obligations, especially if you are overseas.

    The contract you signed, together with consumer law, will determine the rights and responsibilities of all parties.

    Usually, if you sign a contract and fail to perform, you will lose any deposit and have to compensate the other party for losses incurred. As such, and this is not advice, I would expect you to lose your deposit, and you may be liable for any shortfall in sales price the builder / developer incurs selling the property to another party.

    The short answer is this: get legal advice, quickly. If the lawyers bring absence, you will need representation or you could find a judgement is made against you.

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

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