Developer tricks to watch out for when buying off the plan...
http://www.news.com.au/finance/real...clause-cash-grab/story-fndban6l-1227385761594A GROUP of 34 home buyers has launched one of the biggest class actions of its kind after their contracts to buy luxury apartments were torn up under a controversial sunset clause.
Experts have warned of the growing trend of unscrupulous developers intentionally triggering sunset clauses, which give either party the right to pull out if the construction isn?t completed by a given date. The clauses allow developers to cancel contracts and resell the properties at higher prices.
That leaves many first home buyers priced out of the market altogether and unable to buy back in with their original deposits.
The group of Sydney buyers, who entered into off-the-plan contracts between November 2009 and May 2010 to buy units in a luxury apartment complex in Sydney?s Wolli Creek, have launched legal action against the developer, Kaymet Corporation, after it rescinded their contracts in March 2013.
The units in the development have appreciated by between $150,000 and $200,000 each. Kaymet Corporation stands to gain about $5 million if it is successful in relisting the units at their current market price.