OTP Development Sunset Date

Hi All,

I purchased a OTP 3 years ago and the final sunset date is coming up in 7Months, the original sunset date was October this year but developer has extended the sunset for another 4 months due to an extension clause, as for the development, they are currently still digging a hole( its deep ) but no foundation has been layed out yet. The apartment is 10 storey with 3 basement parking.
I've been told its is highly unlikely the development will be finished in 7 months, I've spoken with my lawyer and they have advised me to wait out till sunset clause date. I'm feeling very anxious as what to do and what to expect should i seek opinion from another lawyer or should i just wait it out? has this happened to you?
I don't understand why they are seeking to extend the sunset date if the development wont be going ahead.

Appreciate your feedback.

 

Maybe theyre looking to sell the project. Triggering the sunset clause would mean they have to return deposits.

 

The project wont be developed in time even if it was to be resold. I don't understand why holding out longer would help with reselling the project?

 

So whats the problem then? Youve waited this long. A few more months.

Maybe the rate cuts will make it easier to sell the project.

 

Does the developer have a right to extend the sunset date further? If so, waiting might not be the best strategy. Otherwise, I agree with that approach.

Not sure where the property is located. There’s an argument a sunset date can’t be extended if it’s Qld.

 

Completion will take 12-18 months. There may be an issue with finance thats stopping them from commencing construction.

How many units have they sold within the complex and when did they commence excavation?

Do you feel comfortable with the project (even if it was built in 7 months time) in light of the recent events @ Opal and Mascot?

 

You have to realise the buyers are not the priority to the developer.

 

Your solicitor is correct. Most Off the Plan contracts allow for a purchaser to withdraw from the contract once the sunset date is reached. No compensation is paid, you will get your deposit back and if it was invested any interest it gained, these are they most common terms.

 

I’ve been waiting 3 years for something similar. Developer went broke, new owner now. I think they’re going to pull it off in time, they went from an empty block to almost lockup in less than 10 months

Was advised the same thing, just have to wait

 

Hi Fobo,

That's really quick for a development, can i ask how big this project is?

eg how many floor levels, basement levels? is the 10month from the moment the hole was already dug?

Thanks

 

Much smaller sorry, 8 townhouses all above ground. Started from an empty block