Dozens of families have been left in the lurch after a developer revoked sale contracts for land in a new Tarneit estate.
It is believed up to 100 purchasers have been affected by developer Grassylands Pty Ltd’s decision to trigger sunset clause provisions for the first three stages of land sold at Emerald Park estate, leaving affected purchasers significantly worse off due to increased land values.
One Tarneit resident, who wished to remain anonymous, said he purchased land in Emerald Park in January, 2017, for $200,000. He said the date for the title release was originally slated for September 2017, but it kept being delayed until the sunset clause was enacted and his deposit was refunded in February this year.
“If you go to other estates close by, they’re worth over $400,000 for land the same size,” he said.
A Grassylands spokesman said it had invoked the sunset clause because it had been unable to have subdivision plans registered with the land titles office by the required date.
In a letter sent to residents in February, Grassylands advised purchasers that it was still waiting on approvals from several government authorities and on the construction of a trunk sewer main and water mains.
Last week, Wyndham council called on the Consumer Affairs Minister to investigate the correspondence issued by Grassylands in relation to the reasons behind the delayed start of the Emerald Park development.
The council also agreed to write to the state government and request that it adopt New South Wales-style laws to provide greater protection for consumers in relation to the use of sunset clauses.
The council will contact both Grassylands and Emerald Park purchasers to clarify the council’s role in the process.
Councillor Josh Gilligan said purchasers now faced the dilemma of re-entering a contract at Emerald Park or finding land elswhere “in a much more expensive property market”.
“And of course on the flip side, the developer who still owns the land can go ahead with the development and re-sell that land at today’s market value,” he said.
