The state government will give more power to people buying property off-the-plan in a crackdown on developers.
The government last week announced changes to off-the-plan contracts so they cannot be terminated under sunset clause provisions without the written consent of the purchaser, or by order of the Supreme Court.
Currently, developers can exploit the sunset clauses by delaying construction of an estate to terminate signed contracts of sale. They then re-sell the property for a higher price.
As reported by Star Weekly in May, up to 100 buyers were 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 buyers significantly worse off due to increased land values.
At the time 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.
A group of 24 Emerald Park buyers who had their contracts revoked have now taken out an injunction against Grassylands.
One of the buyers involved in the legal action, who wished to remain anonymous, said while the government’s changes won’t help those who have already had contracts cancelled, it was a positive step forward.
Consumer Affairs minister Marlene Kairouz said: “We’re giving Victorians who buy off-the-plan more control and peace of mind by cracking down on … developers.”
Wyndham councillor Josh Gilligan branded the move “a good correction” that favours the buyer rather than the developer.
“It’s a big win, a good result,” Cr Gilligan said.
Consumer Affairs Victoria is investigating the correspondence received by Grassylands in relation to the delayed commencement of the Emerald Park development, according to Wyndham mayor Peter Maynard.
