Dozens of buyers from the Castle Hill Development Mountain Vista Estate have been stung with tens of thousands of dollars in extra charges. Many purchased the properties two years ago by paying a 10% deposit and have been waiting for the works to be completed. Delays in engineering works have meant that the subdivision works have not been registered in time; this in turn means that the Contracts may be rescinded. The developer has offered some buyers the option of not rescinding the Contract, if they fork out an additional $75,000.00 on top of the already agreed purchase price. Last year changes were made to off-the-plan development laws, that were supposed to stop developers from taking deposits, rescinding the Contracts once the date for registration had expired and then on-selling the properties for a higher price. This issue is currently before the Supreme Court of NSW and will test the new measures to see if the buyers will in fact be protected.
If you are thinking of buying off the plan, please read our blog which outlines the benefits and risks involved with buying off-the-plan: http://ozpropertylaw.com/buying-property-off-the-plan/