Hello almighty brains of PC. Hope everyone has found time to enjoy the holiday period! What is your opinion on placing a sunset clause into the “off plan” purchase contract, not to benefit the developer (we legally cannot pull out of the deal) but to benefit the purchasers? For example, should they not like the finished completed development they(the purchasers) can pull out and have their deposit repaid. Is this unheard of?
Developers don’t necessarily like having to sell off the plan as it reduces the return compared to selling the finished product. They sell down stock to gain more favorable finance.
Be interested to know how the lenders see this. If a contract with this sort of get out of jail free clause counts towards presales for lending, what's to stop developers from just preselling everything to straw buyers with this clause?
Can you please elaborate, tried to google AFAIK but got nothing. Its definitely a no go for developers as of only a few years ago, just not sure if this is the case for the purchasing party
Sunset Clause for off-the-Plan Purchases - Don't Be Caught Out New requirements for off-the-plan contracts from 1 December 2019
Thank you!! That mostly explains it, great article. Also- AFAIK (as far as I know)- my wife literally rolled her eyes at. Haha
Sunset clause laws vary from state to state. Its one for your solicitor. Some states have not updated laws and other like NSW banned the whole practice.
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