When developer refuse to sell last minute.

The vendor may be affected by consumer law, a real estate agent license and other matters. If a buyer placed a caveat on the land and progressed to fair trading it could affect the sale by the developer and lead to a negotiated outcome.

The framing of a contract should contains clauses to give rights and obligations. Para 48+ indicate a buyer may have grounds to at least pursue legal remedy even if that means settling for lesser damages than through pursuit in court. A developer could cross a enterprising landowner such as Mr T Waugh who could initiate their own claim and seek an injunction, caveat and other means to encourage damages to be paid for little cost than say myself who would need to engage representation. It would certainly encourage an arbitrated outcome above that of a deposit. Dont assume all people fear courts. Someone with suitable time, money and wealth may be driven by principle. Their father, mother, brother or friend may even be a QC or another qualified person of assistance. And wont let the bone out of their teeth no matter how hard you ask.

 

Thanks for the detail response Paul.
I read the document you shared.
I was wondering if “specific performance “ to force the vendor to sell - is this already part of the standard land contract in nsw or can be requested to be added?

 

Thats a question for a solicitor, not an accountant. My understanding is SP is a legal remedy available through a court hearing and favourable decision of the court. That is the court will award specific performance to have the vendor sell the land or face (further) damages. That is the Supreme Court of XXX state. A costly process to initiate and seek orders on. BUT a initial legal claim (ie a letter) that threatens that from a solicitor may be worthy of pursuit prior to the costs becoming high. Most court matters start with bluff and can be akin to playing poker. Bet what you can afford. If the claim is solid it likely to be difficult to defend. But its the cost that makes winning not palatable. You can win and still lose. A solicitor may be able to give a idea on costs. It wont be cheap - $15K++++ SP can be ordered but the court cant always force them. If the vendor refuses then further orders for damages must be considered. More cost. More delays. And damages will face a costs assessor - Like a insurance assessor they always seem to prune costs despite them being actual. If costs are awarded it does NOT mean all your legal costs are paid.

Can I Obtain Specific Performance For a Contract Breach?

 

Most developers want to get out fast. The cost of legal problems or any other problem is something they avoid. Sometimes developers sell land OTP and find it cant be registered as proposed. Thats different to refusing to settle.

A developer given opportunity to allow someone out in a rapidly rising market is different. Some may jump at the chance eg unexchanged contracts, options etc I heard of a couple who lost jobs due to covid and the developer happily gave them their deposit back and didnt keep it and promptly onsold the land at a higher price minutes later. $60K more. And the buyer happily paid that (a builder). But you cant enforce creation of an allotment that cant be registered. eg Council orders a ******ing basin on the lot they sold. They might offer another lot or may offer money back. I would steer clear of contracting with small time land developers in a new release area. Big time players just sell and move on to the next 60 lots and up the price and so on. The little guys will make mistakes, a take time and may even not be well financed to complete.

An old adage in sales - You cant sell it twice.