apartment internal size Smaller than original off-the-plan floor plan

Discussion in 'Legal Issues' started by James H, 3rd Aug, 2020.

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  1. James H

    James H Well-Known Member

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    Hi fellow property experts,

    After inspecting my off-the-plan apartment that’s due to complete, I realized the unit is more than 5% (6-7%) smaller than what’s in the original floor plan. That’s based on my own measurement. I’m trying to rescind contract based on this defect. My solicitor suggested hiring an independent professional to do the measuring. Is it how it’s normally done? Or do I wait for the developer’s measurement which is used for strata title? Thanks.
     
  2. Ace in the Hole

    Ace in the Hole Well-Known Member

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    How did you measure?

    I’m sure there’s plenty of examples like yours online, so here’s one which mentions 4 methods, and the banks apparently use the lowest area method - Maddocks | Size matters: Birch v Robek & Anor
     
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  3. James H

    James H Well-Known Member

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    Right. I’m using the lowest area method. I’ll ask my lawyer to raise this issue with developer and see what they say. Thanks.
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Registrar General
    New requirements for off-the-plan contracts from 1 December 2019

    NSW Fair Trading

    Changes to the building plans often occur during construction. The finished complex or unit may not be the same as in the original plan. Consider any terms in the contract that may allow these changes.

    For contracts entered into from 1 December 2019, the vendor must notify you of changes to ‘material particulars’. If you are notified about any change, you should discuss these with your lawyer or conveyancer right away. While legislation may allow you to pull out of the contract or claim compensation, you only have 14 days from being notified of a change to take action.

    Contract date ?
    Is it 5, 6 or 7% smaller? You seem unsure. If its affected, a material disclosure form is required to indicate the particulars eg area reduction etc
    Fair Trading acknowledge that plans will vary from finished product - Is the change material at 5%? It may or may not affect your use "adversely"