Sunset clause reached and builder is asking for more money

Hi all, I bought a off the plan property in December 2012. Original sunset date was 23 December 2013 but the builder went in liquidity so we received a letter for sellers conveyancer to extend the sunset date for 6 months which we agreed as we bought this property to live in and sydney prices has appreciated a lot.
But new builder has not started the building yet we have reached the sunset date.
Now seller is saying he has lost 200k in this so we should be receiving a letter soon.
Now my question, can builder terminate the contract even if we want to allow extension of sunset date? Can he ask us to compensate his losses and ask for new contract price. Not sure what our options are.
Please help.
 
Hi all, I bought a off the plan property in December 2012. Original sunset date was 23 December 2013 but the builder went in liquidity so we received a letter for sellers conveyancer to extend the sunset date for 6 months which we agreed as we bought this property to live in and sydney prices has appreciated a lot.
But new builder has not started the building yet we have reached the sunset date.
Now seller is saying he has lost 200k in this so we should be receiving a letter soon.
Now my question, can builder terminate the contract even if we want to allow extension of sunset date? Can he ask us to compensate his losses and ask for new contract price. Not sure what our options are.
Please help.

Read your contract. Whatever you agreed to is in there. Sometimes there are special conditions that if either party becomes bankrupt, or an administrator etc appointed the either party can rescind.
 
Read your contract. Whatever you agreed to is in there. Sometimes there are special conditions that if either party becomes bankrupt, or an administrator etc appointed the either party can rescind.

Actually we bought it from a realestate agent and he had a contract with the builder. He has'nt declared himself bankrupt yet so how can he rescind?

Can he ask for money legally after the sunset date?
 
Actually we bought it from a realestate agent and he had a contract with the builder. He has'nt declared himself bankrupt yet so how can he rescind?

Can he ask for money legally after the sunset date?
I think I know the answer, but for the sake of completeness: did you get legal advice before signing the contract? Have you contacted the lawyer who gave you that advice to ask these questions?

If, as I suspect, you didn't get legal advice, then you need to do so, rather than asking on the forum.

The only advice that somebody here can give you would be general advice, that may not apply to your particular contract's conditions.
 
I think I know the answer, but for the sake of completeness: did you get legal advice before signing the contract? Have you contacted the lawyer who gave you that advice to ask these questions?

If, as I suspect, you didn't get legal advice, then you need to do so, rather than asking on the forum.

The only advice that somebody here can give you would be general advice, that may not apply to your particular contract's conditions.

I did get legal advise as my conveyancer is a lawyer. I had a chat with him even 2 weeks before and he was saying that the agent can ask for another sunset extension but can not increase the price. But when I called the realestate agent yesterday to findout the progress then we came to know that he is willing to increase contract price. So obviously there is something I am missing and my solicitor is missing that as well.
 
I did get legal advise as my conveyancer is a lawyer. I had a chat with him even 2 weeks before and he was saying that the agent can ask for another sunset extension but can not increase the price. But when I called the realestate agent yesterday to findout the progress then we came to know that he is willing to increase contract price. So obviously there is something I am missing and my solicitor is missing that as well.
I'm glad you had legal advice. :)

If you're just getting told verbally that they want to increase the price, I'd completely ignore it. If and when you get a letter saying the same, get your lawyer to respond.

If your lawyer says that they can't increase the price, I'm not sure what you're asking here. We can't possibly know enough to say that your lawyer is wrong, if that's what you're after.

What may be happening is that the builder does have some right to terminate - what does your lawyer say on that point? - but is willing to sign a new contract at a higher price. That would not technically be "increasing the price", but would be a mechanism by which the same end could be achieved.
 
Remember what the purpose of a sunset clause being put into a contact is.

I have seen land sold OTP with a sunset clause. The developer exercised his right under the clause, terminated all the contracts and gave back deposits. He then sold for a much higher pirce since the market price had increased significantly since being sold OTP.
 
I did get legal advise as my conveyancer is a lawyer. I had a chat with him even 2 weeks before and he was saying that the agent can ask for another sunset extension but can not increase the price. But when I called the realestate agent yesterday to findout the progress then we came to know that he is willing to increase contract price. So obviously there is something I am missing and my solicitor is missing that as well.

...you're wondering who to believe between your lawyer and the vendor's real estate agent?
 
...you're wondering who to believe between your lawyer and the vendor's real estate agent?

Exactly. but in 2 days time the picture will be more clear as sunset date is 23 June. Thanks for the response guys. I will wait till I get a formal letter then will decide.
 
Remember what the purpose of a sunset clause being put into a contact is.

I have seen land sold OTP with a sunset clause. The developer exercised his right under the clause, terminated all the contracts and gave back deposits. He then sold for a much higher pirce since the market price had increased significantly since being sold OTP.

This is a very real risk with OTP.
If the market has risen and the sunset clause allows the seller a way out they may take it and resell.
Even if you were willing to agree to another sunset clause they don't have to offer one if there is no more in the contract. It is up to them to propose another if they wish and then you to agree if you wish.
If the seller is moaning about losses I bet he wants to not offer an extension, give back all deposits and resell again.
 
Actually we bought it from a realestate agent and he had a contract with the builder. He has'nt declared himself bankrupt yet so how can he rescind?

Can he ask for money legally after the sunset date?

I don't know, read your contract and find out!

Anyone can ask for money anytime. there is a bloke down here on the corner who asked me for money every day. I am free to give it over or to say no.
 
I got out of an OTP contract last time by exercising the sunset clause but I was the buyer, not the seller. Didn't realise it can work both ways
 
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