Discussion in 'Legal Issues' started by wombat777, 6th Jun, 2015.
Would they then have to write what the practical steps are?
I sold a unit this week off the plan where the purchaser what the sunset clause reduced from 18 to 12 months. Not every situation is the same.
The developer? Depends what your clause says. I imagine that if you sought legal advice from a competent property lawyer, they'd have dealt with this many times before and know precisely how best to protect one's interests when buying OTP. At a guess, it might involve laying out the anticipated milestones, regular reports to buyers as to progress against milestones and any delays, arbitration of delays in excess of a certain length, making the sunset clause only in favour of the buyer, etc.
Is it the buyer's solicitor's job to find these clauses and ask for them to be removed?
You need a sunset clause otherwise your contract is open ended.
It's the buyer's solicitor's job to ensure that their client knows what they're signing up for, and, if it's too one-sided, suggesting amendments to better protect their client's interests.
Anything can be put in or out of a contract but if the industry standard is to include a sunset clause then its going to be hard to exclude or modify it
Will developers look at you like youve run over their dog if you ask for no sunset clause or a modified one that stops this from hapoenijng?
They bought the land early January 2014 with expected title registration in April, then July, then November, then March.... Sunset is August 2015 but my money is on them using the sunset clause and pulling out.
They are lower than a snake's belly.
If they're ethical and acting in good faith, then they shouldn't.
If they do, then at least - if you decide to proceed - you enter the contract knowing that you've only signed up for a "hope", and have no cause to complain when the contract you've signed saying "please shaft me", results in you getting shafted.
^ nb NOT saying that all who are victims of sunset clauses are in this situation. Saying that this would be the situation *if* you got prior legal advice.
on the flip side, when the market turns and you have extended your sunset clause and want an out, don't come a whingeing on here.
let's stop and consider the purpose of a sunset clause...it's to terminate the contract so that the parties aren't hanging out in the wind for excessive time whilst the market changes around them. if the sunset clause is unnecessarily long then its purpose is defeated
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