Any sympathy for these buyers in Sydney?

Or lesson learned and buyer beware...

‘Sunset clawback’ developer Ash Samadi goes into liquidation

One reason by the way why I am very selective in buying off the plan...

 

Just one of the (many) risks of buying OTP. The sunset clause was in the contract. It is a legal document and buyers should have hired a conveyancing solicitor to do a contract review before signing.

 

Agree with @Propertunity

Nothing good legal advise would have sorted

 

I don't think this can be pinned on bad legal advice. I must say, most off the plan contracts I have dealt with would have some way for the developer to worm out in the way this guy did (that is not to say the buyers would not have a legal remedy for the termination). Off the plan contracts are notoriously developer focused and the developer usually has a few rights of termination (sunset date, it is not viable for the development to proceed, cannot secure funding, insufficient presales etc).

 

I feel sorry for them, yes. Not a purchase I would make, but before SS/PC... who knows.

 

I feel sorry for them,
it wasnt the usual greed approach

also, its not like sticking a fork into a toaster,

some people think that every re is a safe investment,

obviously if they ignored legal advice its a different story

 

Saw on the highly credible ACA last night two people on centrelink are in financial troubles after getting a loan for 800k to buy 2 IPs.

Yup....

 

A related question:
Is anything wrong in what Ash Samadi has done ? It is legal I guess. Would be interesting to see the developers opinion.

 

I do feel sorry for them a bit but to be honest allot of people don't want to pay for good advice. So who knows the whole story.

 

In semi-related, want to know something troubling?

I have witnessed an OTP apartment building sold in Sydney recently where there was a recommended conveyancer to help purchasers with the paperwork.

Quick search revealed the same surname of the developer and the conveyancer.

Often people think they are getting good advice and don't know better.

 

You pay what you get for

 

That's always the problem when you sign undated papers,and the person on the other side of the desk just adds what required to push it through,but fmd how can anyone on centrelink
get a loan passed through all the systems in place which sometimes is tainted with dishonsety
moral blame and deception,800k on centerlink..

 

If the market had gone down in this time they would be loving the sunset clause to be able to get out of the contract themselves. It is there as a positive and negative for both sides

I do think that there may be an element of delay to be able to use the sunset clause in this case but we probably won't know now that this has happened. As a developer I don't think I could not honour the original agreement - it's not a legal standpoint for me but a moral/ethical one.

 

That has a whiff of pre GFC Americana lending about it.

"Yeah mate we'll just Negative Gear em out of our Centrelink Payments".

 

I have not read the clause, but I suspect that it would often be worded to provide no benefit to the buyer on downside, buy only benefit to the seller on the upside. Lesson here is buyer beware, and get a good lawyer when entering any business arrangement.

 

Wrong? Yes.

Legal? Maybe, (Disclaimer: I'm not a lawyer..) and this behaviour doesn't seem ideal for cultivating repeat customers...

 

another bad news re the use of sunset clause.
Sunset battle: Why Diane's dream house still hasn't been built three years later

 

People always talk about legal advice but is there such thing as a otp speciliadt lawyer ?

Cant imagine a regular lawyer unless they know the ins and outs of the industry being able to pick up on everything

Years ago i engaged a well reputable lawyer to look over my lease. paid $5k for it. they made a few changes.
However a year later i got caught (welll almost did) on a clause which i didnt know about (im no lawyer)
my lawyer didnt tell me about it but it wasnt a dodgy or obscure one.
So whos fault is that?

Damn you lawyers make our life difficult

 

Wasn't there a similar one a few years ago in Mandurah WA (OTP, waterfront apartments)

1 - Mums & Dads, 50k deposit to get in
2 - Prices start going crazy, M&Ds start selling the PPOR (downsizers) and get ready to move into their rapidly appreciating apartments
3 - Developer pulls out a clause, kills all pre-sale contracts and puts properties on the market for 100k+ more
4 - Screaming and Yelling ensures
5 - Market tanks, apartments end up below original OTP valuation

I was not part of it and going on memory, but I think the summary was that the developer got a bit greedy and ended up being bit in the bum

Still seems to be a lot of apartments struggling to sell there

cheers

greg