Pulling out of a contract

I would like to pull out of a contract for an apartment I purchased in October 2015 in Bowen hills. The developer is Starhill and the complex is called Topaz Residences.

The estimated project completion date was April 2015, however construction has not even started.

The property team at Topaz Residences at Bowen Hills

The project was supposed to consist of two towers with 156 apartments in total. The towers would wrap around a restored heritage house.

However I have just been informed by my solicitor that Tower B will no longer be built. This changes the whole look of the complex and I am sure the strata fees will be increased as there are now less owners to share the expenses with.

I have tried to email the developers via their website to find out exactly what the changes are and what the new completion date is (at the moment no construction has started on the site) but they have not replied to my email. They were very quick to reply to my sales enquiry before but now I feel I have been left in the dark about what is happening to this development.

Is it possible to get my initial deposit back? How should I go about trying to get this back?

 

The project was due to complete before you purchased it? Or is that a typo?

I would think the only way you could get out of it is if there is a significant change to your unit (over 5% change usually). I would expect that the loss of the other tower wouldn't count as a significant change as it doesn't affect the floorspace of your apartment.

The other out is if there is a sunset clause for either starting or completion of the building of the unit. It's usually several years out from purchase date so I would think it wouldn't be up as yet, but you never know. It'd be worth checking your contract.

Anyway, I'm no lawyer, just basing this on my own experiences

 

Questions for your solicitor.
Marg

 

Sorry the project was due to be completed in April 2017

 

The sunset clause is 3.5 years from the contract date so I suppose I will just have to wait till then, but thank you for your response. You confirmed what I thought. There is no way to get out of it just because they are not building a tower which doesn't affect my individual apartment.

 

So sunset clauses are usually well over 12 months after the expected completion date, so I highly doubt you'll be able to get out if it from that clause. Looks like you'll need to engage a solicitor. If you used one for the conveyancing you might be able to shoot them a quick email and ask if there's any way out of the contract.

 

Yes, but still probably worth speaking to a solicitor. I'm not one, so don't want to tell you the wrong information.

 

Believe they have commenced, they have torn down the adjoining houses and there has been clearing activity on the site.

Another option might be to resell?

 

Uh if you are serious about wanting to pull out, then get legal advice on it now - it could make it much worse to wait until the sunset clause is up.

 

Clicking on the link on their website to find out more about Starhill comes up with this ....

Website Suspended Due to non Payment of Account

Not a good sign for the viability of the project

 

Yes just heard from an agent that the project has been delayed until further notice. I have tried emailing Starhill again to get an update but no one has replied.

My solicitor has confirmed that I will have to wait until much closer to settlement when the sellers advise of changed community managed statement and disclosure statement and see if those amendments give rise to a termination.

If I knew it was going to take such a long time to build I would not have purchased this.

 

Is your deposit held on a real estate agent or solicitors trust account ?...
Or how do you know it is ?

 

My deposit is held in a trust account. I asked my lawyer to find out what was happening to the developer and if there were still going to develop. I found this online
Insolvency Notices

Does this mean that it is unlikely they will develop? If this is the case do you think that they will return my deposit? Or will they only do that after sunset date which is mid 2019

 

Irony....I remember just 6 months ago people complaining they were getting deposits returned by builders who wanted to dump their customers to sell apts higher.....and here we are the slightest whiff of a downturn and everyone running for the exits.

 

Did you read the thread? This particular situation is a tad more than a whiff....

 

Developer can always sell the site (and often do) especially if they can't secure finance or adequate pre-sales.

 

Should not make much difference to BC charges. Fewer owners certainly, but only one tower to maintain, clean, insure, repair etc. instead of two.
Marg

 

What is your lawyer saying?

 

I just went through this with a client. Get legal advice. The liquidator etc will take that on and may complete. If you rescind the contract through actions and emails and correspondence you may lose that ability to settle and become a unsecured creditor rather than hold a right to the land which may rank preferentially.

It depends if the land has been completed or is still pending development ie native undev land land. A liquidator wont want to complete a major dev but may seek to sell the land to another dev. But then you may lose your land. Depends what agreed. If its 99% complete the liquidator may want to complete the dev if the lender agrees to finance it. A creditors meeting will explain.... Get your proof of debt lodged. Your solicitor should advise.

A slow and frustrating process. Normally the former parties will claim a huge amount and then the liquidator will dispute it....Takes time.

 

I emailed them 3 weeks ago and they said that they would look into it but still have not gotten back to me.

I tried to contact the sales agent as well but they said I should contact my lawyer. I suppose I will just have to wait it out.