In December’s newsletter we gave you some information about proposed new legislation regarding developers and sunset clauses.
That legislation has passed. There has already been a Supreme Court case where a developer sought to use a sunset clause to rescind, and the Court did not allow it.
If you missed that article, 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 again at a higher price.
The purchaser had certain rights but had to commence proceedings in the Supreme Court to enforce those rights, a lengthy and expensive process.
It is now the developer who must seek consent from the purchaser or failing that, commence the proceedings in the Supreme Court.
It doesn’t apply to contracts where the developer rescinded prior to the legislation, but it does apply to contracts which were signed prior to the commencement of the legislation.
If you are purchasing off the plan you should make an appointment to speak with Bruce Coode about your rights as a purchaser.