OTP help

[Peter_Tersteeg]

Yeah i definitely will. Please send me a PM if you know of any solicitors that can assist.

I've sent you a PM with solicitors details who have some property specialists. They've also got a great conveyancing department.

Overall it sounds to me like they want you to resign so you can't execute the sunset clause and get out of the contract. There's a half truth in what the developer is saying. If people don't resign, they have to return deposits and the bank will pull the financing from the developer for the project.

When you hear about developers going bust (happens quite a lot), this is often the trigger. An overdue and over priced development, people pull out, the bank follows and the developer declares bankruptcy.

 

[VYBerlinaV8]

Hi everyone,

I have a question regarding my partner's OTP purchase.

The contracts were signed in July 2011, with a 42 month sunset clause. Last month the developer called my partner and wanted to speak to her face to face regarding the apartment she purchased.

I decided that I would go along with her as I was curious as to why he needed to speak to her face to face. He said that there had been some delays getting some permits and that he needed her to sign a new contract. He offered a $3,000 discount and an air con if she signed the new contract. We obviously suspected something was up, so we said we'd think about it. He sent an email (see below):

Hi,

As discussed, there have been delays in dealing with government bodies and therefore the builder will not be fully mobilised until Dec 2013, which has pushed the completion date out to March 2015. The bank requires a 6 month buffer on the contract sunset clause and the completion date, in case of unforseen delays in construction. Although your contract will not expire within the construction phase, the bank would still like to see it extended until late 2015.

I have attached the letter that we need to sign in conjunction with the new contract of sale. I would suggest we date the new COS 17th May 2012, as this would satisfy the banks requirement (new sunset clause Nov 2015), and as I understand, will not disadvantage your FHOG, but do please check this date for yourself.

I'm basically looking for some advice on this forum as the solicitor we were using has not gotten back to us (too busy etc). Thanks in advance for your assistance.

Based on the information in this thread, I would be walking away immediately. Do so through your solictor, and request immediate refund of any money you've paid as deposit. When they call you asking you to reconsider, politely inform them your decision is made and any and all correspondence should be forwarded to your solictor.

Don't wait and be one of the chumps who doesn't get their money back. If the bank pulls out (new contracts, hmmm), the project is probably dead in the water and any non-bank money will have up and vanished like a fart in the wind.

 

[Mazda]

All throughout the conversation he kept reiterating that "you must settle".

I had the same tactic used on me, on an OTP project. Same excuses too The extension is to satisfy the banks, construction will go ahead no problems, the apartment will be built before sunset clause date.

If the project will definitely be completed before sunset clause date, then why should I sign an extension?

I said I'll settle on the original contract, refused to sign, asked for the deposit back as I didn't agree to the extension. About 1.5 years later, and after calls once a fortnight, they returned the deposit.