Sunset Clause - Breaking a contract beforehand? - Building Boost Issues

I apologize in advance if this isn't the best place to post this thread.

My relatives placed a deposit on an off-the-plan property in April 2012 taking advantage of the off-the-plan price, building boost, first-home buyers and a "haggled price".

The building was intended to have 20 floors + 3 underground levels beginning construction in Q4 - 2012. The sunset clause is set for April 2015. Low and behold construction has been delayed...

There are two problems. One is that construction has been delayed until Sep/Oct 2013 due to a lack of presales. The second is that the building boost (10k) package will be invalid if construction does not being by the 30th of April 2013.

Realistically if construction is delayed any later than this new Q4-2013 date its extremely unlikely that the complex will be completed before the sunset clause -is it possible for the buyer to break the contract due to this reason? (Considering construction will take at least 18 months by comparing similar buildings in the area)

Secondly we were constantly lied to by the real estate agent and probably the developer about current presales, his targets and construction dates. Because of this deception we will also loose out on the building boost package and thus cost us more money. Do we have any case if we were to purse legal action or would it inherently be a waste of time because we signed the contract?
 
Why has your friend placed a deposit based on what you have noted in the post?

Also what makes you think that they will not build it before the sunset clause? I have never seen this happen. Is it a larger builder?

You will need to get legal advice but I don't think you can terminate the contract on the basis that you 'think' it will not be completed by the sunset date. Again have the solicitor review the contract. I assume its too late to pull out?

Regards

Shahin
 
Yes it is too late, originally he signed the contract for the apartment in 2012 with an idea that construction would start mid 2012/ followed by late 2012/ and then early 2013. It was originally advertised with the QLD Building Boost grant (10k value)with settlement in late 2013/early 2014.


Construction has been pushed back to late 2013 due to a lack of presales - which is outside the date to be eligible for the Build Boost grant. They've had issues with the realtor and have replaced them.

I guess with the pattern of setbacks we were discussing what happens if it gets pushed back again into early 2014, will they have problems constructing 228-apartment complex in less than 16 months?
 
For the pulling part you will have to read what the contract says about this.

For the false and misleading bits, yes you could have a case.
 
Thank you - The original lawyer he used to check the contract was a bit laid back about the process so we'll have to scout a new one.
 
Send him off to Terry if he is NSW based.

He's actually in Melbourne - would you happen to know anyone/have a recommendation? Or does the lawyer need to be located in the same state as the building complex (which is indeed Qld)?
 
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