Off the Plan – buyers beware of Sunset Clauses
Whilst signing an “Off The Plan” (OTP) Contract and paying a deposit is a real commitment, purchasers need to be aware of their rights and obligations. Clients need to be fully informed. A starting point is the contract is conditional upon the vendor / developer completing the construction and registering the plan of subdivision in a defined period of time. The contract will in effect contain a sunset clause. If the construction and registration of the plan is not completed within x months from the date of contract, the purchaser has the right to rescind or cancel the contract and have the deposit fully refunded.
Within the special conditions the contract will categorically state the length of time of the sunset clause – it might be 12 months, 18 months (the default), 24 months or even 48 months. This date is fixed and cannot be arbitrarily changed. If the sunset period is reached and the plan of subdivision is not registered, you the purchaser can elect to cancel the contract. Or you can elect to continue with the contract until the project is completed.
Contact Matt Duker
Director & Licensed Conveyancer (Licence No 000935L)
Good Morning Matt, Jo & Darren, Thank you so much for your professional guidance and representation over the past 2 months. It has been so reassuring for us to have your experience and expertise on our side. It was a relatively smooth ride and we are so pleased everything went well. You're right. We are very happy here in Tassie and soon move into our own new (100 yr old) home on the north coast. We don't foresee buying again in Victoria, but we do have plenty of family and friends living there. We will be the first to recommend Conveyancing Excellence to them should they decide to sell / buy property. All the best for a successful 2015 and beyond. Your team is really a class above all competitors, and your name really should be Conveyancing Beyond Excellence, because the service you deliver is exceptional. We found you via much online research, and retaining your services sits high among the best decisions we have ever made. Thanks again for representing us so well,Scott & Rachel K Vendors May 2015