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Whoops - Developers forgot to build 2 levels of Carparks

Discussion in 'Development' started by Redwood, 29th Oct, 2015.

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  1. Redwood

    Redwood Well-Known Member

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    Ok - this is an interesting one.

    Developer builds an apartment building, however forgot to build 2 of the 3 levels of underground car parks. Whoops!

    This is not an honest mistake - this is purely taking the piss. As a result, there may be a number of purchasers who purchased an apartment with a carpark/storage on that level - that will either not have a car park or will have a car park in an alternative location (i.e down the street).

    This will be interesting to see the outcome. There are clauses within a std OTP contract in Vic that protects the developer for anything (i.e they can change anything) however, there may be recorse under the Trade Practices Act that I will let the lawyers dig into to.

    Lets hope that the council says NO and does not issue the permit. In the meantime there will be a number of impacted investors (most likely foreign given the location) that will be in limbo.
    Read more
    http://www.theage.com.au/victoria/o...s-of-underground-parking-20151028-gkkhxv.html
     
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  2. Big Will

    Big Will Well-Known Member

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    Throw another log on the fire of why I don't buy OTP.
     
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  3. Chilliblue

    Chilliblue Well-Known Member

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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Saved the developer $@,000,000 in a rising market.

    Council can't give a $#!+ as it wants fewer cars in town.

    Purchasers can pull out if they feel that the delivered product is not what they bought.

    In the immortal words of Meatloaf "2 out of 3 ain't bad".
     
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  5. Big Will

    Big Will Well-Known Member

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    Need to change the words as it is 1 out of 3 :p
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    If its a rising market and purchasers pullout, then they might achieve even more for those units to new buyers. Win win for everyone :p
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    @D.T. absolutely right - the canny buyers would flip the units if the upside was greater than the loss of parking.
     
  8. neK

    neK Well-Known Member

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    These developers should be thrown in the jail for deliberately taking the piss.

    All for development, but there are always those who push the rules too far for the sake of $$$.
     
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  9. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Buyers would be materially prejudiced and able to terminate under OTP laws in QLD. Not sure on Vic but assume it would be similiar
     
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  10. neK

    neK Well-Known Member

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    But with the market growth, it would probably suit the developer more if they did cancel!
     
  11. Redwood

    Redwood Well-Known Member

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    Depends on how much they paid for the apt....not so sure abt market growth in the CBD.
     
  12. CosmicTrevor

    CosmicTrevor Well-Known Member

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    I don't think buyers will be materially prejudiced if they still have a car park but it is above ground instead of below ground. It doesn't say that buyers have missed out, just that it is inconsistent with the approved plans. If this is right then only the council can take action I would think.
     
  13. Chrispy

    Chrispy Well-Known Member Premium Member

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    Apparently some Owners are already living in the apartments. One of them phoned in to the radio today. How can this happen? Surely Council check that the building is as per permit?
     
  14. Scott No Mates

    Scott No Mates Well-Known Member

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    @Chrispy - maybe they used a private certifier
     
  15. sanj

    sanj Well-Known Member

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    gotta say there appear to be a hell of a lot more shonky scumbag developers in sydney and melbourne

    bedrooms disappearing, now carparks, fair few using sunset clauses to rescind contracts and resell at much higher prices etc. cant say this is a common occurance at all in perth, i cant think of a single occasion (apart from a couple of times sunset clause has been used - eg finbar with reflections)
     
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  16. neK

    neK Well-Known Member

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    And all they get is a slap on the wrists (if that) and a fine which they laugh at as its so minute in comparison to the extra profit made.
     
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  17. Chilliblue

    Chilliblue Well-Known Member

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    Agreed. If they had to knock it down then less of these issues would occur
     
  18. Scott No Mates

    Scott No Mates Well-Known Member

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    @Chilliblue - S96 application will solve all of the developers problems. Modify the DA, get rid of parking, justify the decision & problem gone. Building is now DA compliant.

    Developer and council happy.
     
  19. albanga

    albanga Well-Known Member

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    And here I am stressing that Chris and Marries didn't have the correct plant I had approved In my landscaping plans so I planted a similar alternative.
     
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  20. Scott No Mates

    Scott No Mates Well-Known Member

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    @albanga - today the plant, tomorrow the plant & equipment.