Off-the-plan buyers today won a massive victory in a landmark Supreme Court judgement and major test of new legislation to protect property purchasers.
A developer purported to terminate 12 off the plan contracts in a a new building in Surry Hills. The developer argued that it was entitled to rescind the buyers contracts because of numerous problems with the development, meant completion of the project pushed the completion beyond the sunset clause dates in the contract, therefore entitling the developer to rescind the contract.
The purchasers took action against the developer because they believed the developer was merely trying to cancel their contracts so the developer could obtain a higher price in an increasing market.
Justice Rowan Darke on Wednesday ruled the developer had not acted justly or equitably in trying to rescind the contracts. He dismissed the developer’s plan to rescind up the contracts, and the purchaser’s were permitted to complete their purchase. This is the first case to test the new laws that was introduced by the government significant changes to the legislation to protect buyers against developers trying to enact sunset clawbacks to increase their profits.
Read the full story on Domain here.
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