Join Australia's most dynamic and respected property investment community

Any sympathy for these buyers in Sydney?

Discussion in 'General Property Chat' started by big max, 23rd Mar, 2016.

  1. big max

    big max Well-Known Member

    Joined:
    30th Nov, 2015
    Posts:
    1,014
    Location:
    Gold Coast
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,224
    Location:
    NSW
    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.
     
    Warren, Big Will and Terry_w like this.
  3. Chilliblue

    Chilliblue Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,578
    Location:
    Australia
    Agree with @Propertunity

    Nothing good legal advise would have sorted
     
  4. JDM

    JDM Well-Known Member

    Joined:
    19th Jan, 2016
    Posts:
    145
    Location:
    London (ex Brisbane)
    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).
     
  5. Bran

    Bran Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    3,212
    Location:
    At work
    I feel sorry for them, yes. Not a purchase I would make, but before SS/PC... who knows.
     
  6. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    1,386
    Location:
    Melbourne
    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
     
  7. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,546
    Location:
    Melbourne, Australia
    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....
     
  8. Skilled_Migrant

    Skilled_Migrant Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    688
    Location:
    Melbourne
    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.
     
  9. jpcashflow

    jpcashflow Well-Known Member Business Member

    Joined:
    21st Jun, 2015
    Posts:
    371
    Location:
    Melbourne
    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.
     
  10. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    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.
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,544
    Location:
    Sydney or NSW or Australia

    You pay what you get for ;)
     
  12. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    1,688
    Location:
    Brisbane..
    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..
     
    Sonamic likes this.
  13. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    13th Jun, 2015
    Posts:
    2,942
    Location:
    Perth
    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.
     
    Skilled_Migrant likes this.
  14. Sonamic

    Sonamic Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    935
    Location:
    Sunny QLD
    That has a whiff of pre GFC Americana lending about it.

    "Yeah mate we'll just Negative Gear em out of our Centrelink Payments". :p
     
  15. big max

    big max Well-Known Member

    Joined:
    30th Nov, 2015
    Posts:
    1,014
    Location:
    Gold Coast
    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.
     
    Skilled_Migrant likes this.
  16. Ted Varrick

    Ted Varrick Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    563
    Location:
    No Mans Land
    Wrong? Yes.

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

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
  18. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    1,386
    Location:
    Melbourne
    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 ;)
     
  19. aushelby

    aushelby Member

    Joined:
    4th Feb, 2016
    Posts:
    7
    Location:
    Perth
    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