Hi everyone,
I'm buying an off-plan land lot at waterside which is developed by Stockland and I’m having a problem. I was told by its salesman the registration date would be next August (2011). They sent the contract to my solicitor and I met with the solicitor this morning. My solicitor brought up an issue about sunset date to me. The sunset date is about one year after the expected registration date, i.e. June 2012. And the contract says they rely on the sunset date to complete the land development, which means if they don’t complete the land development next August, they can extend it to at most June 2012. And only until then can I withdraw/terminate the contract. So the possible worst situation for me might be I end up without getting the land after about TWO years, and I can only get my deposit back and won’t get any compensation, and I waste two years to buy other land or house.
My solicitor also told me it’s normal there is a sunset date for off-plan lands and sunset date is normally 6-9 months after registration date. My situation is awkward because the expected registration date is already a bit long to now (next August). So plus one-year sunset date, it would be a too big risk for me. It wouldn’t be a problem if the expected registration date is 3 or 6 months later.
I’m very worried about the risk at the moment and am considering not signing the contract. Anyone has any comments/suggestion? Anyone had similar long sunset date and what was your experience? Any reply will be appreciated.
BTW, there is another requirement in the contract that I cannot start to build my house until they complete an acoustic wall and also complete several houses opposite to my land, which is required by Penrith council. So the plan for my land is not independent and instead is a part of neighbourhood development. I guess the reason for the two-year-later sunset date might be they need this time buffer to ensure they can complete all these work.