There has been an ever growing increase in purchasing real estate off the plan, as developers are selling properties this way in many suburbs across Sydney. New legislation will provide further protections for purchasers as against developers.
In the past some developers had used sunset clauses, where either party can cancel the contract after a certain period of time, to cancel the contract and then sell the apartment again at a higher price. These clauses were not intended to create an opportunity to gazump purchasers.
The purchaser had certain rights but had to commence proceedings in the Supreme Court to enforce those rights, a lengthy and expensive process.
Under new legislation introduced to Parliament, it is now the developer who must seek consent from the purchaser before they can rescind and this legislation is retrospective.
If the purchaser doesn’t agree then the developer has to go to court and convince a Judge that they should be allowed to terminate the contract.
It doesn’t apply to contracts where the developer has already rescinded, but it does apply to contracts which were signed prior to the commencement of the legislation.
While the legislation still needs to be voted on, if you are purchasing off the plan you should make an appointment to speak with Bruce Coode about your rights as a purchaser.