“Off the Plan” buyers had decision against them
An interesting case was described in the recent REIQ Journal where a development company was aiming to achieve settlement of a unit it had built for a purchaser.
Briefly, the unit was completed and transfer documents requested from the developer’s solicitors by the purchasers’ solicitors, then the purchasers refused to settle on the grounds of non-compliance with section 22 of the Act.
Basically the purchasers were claiming that the two balconies were not compliant as per the plan “with up to 5% (more or less) from that shown in the Disclosure Statement.”
On completion of the building the southern balcony was 15.38% smaller and the northern balcony was 10.35% smaller than originally projected.
There were also one or two legal issues involved regarding settlement.
His Honour Justice McMurdo found the purchasers were obliged to complete settlement as basically the internal structure of the unit was very similar to the plan and the that the total size of the subject apartment (including the exterior and interior) were within the 5% tolerance permissible.
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