VIC Apartment OTP-external area smaller

[Albatross]

OTP apartment nearing completion. At pre-settlement inspection determined a significant shortfall in external area, 23m2 instead of 35m2 on plan/drawing we relied on when we signed contract. On that drawing, total area is 107m2 (internal 72/external 35).

In every other respect, the apartment is great; internally it measures up and the quality of the finishes is fantastic. Aware of standard clauses in contract, particularly around amendments to plan of subdivision (which allows for 5% variance) and construction alterations. If the former, we did not receive any notification from the developer.

We requested a meeting with the developer for an explanation of how this has come about, which they will hopefully agree to.

We are not necessarily looking to get out of the contract but keen to know what remedies may be available (if any) post-settlement. From our perspective it is unlikely we would have paid the price we did as the expected combined size of two separate balconies, their accessibility and views were a major incentive.
Will be grateful for any tips.

 

[Rod]

When is settlement?

I suspect you should talk to your lawyer who advised you on your purchase. If you only used a conveyancer, see a lawyer BEFORE settlement. It may well be settlement proceeds but with conditions attached, or a change in price. Doing something after the developer has the money in their pocket is likely to be difficult and expensive.

If you need a lawyer, you'll find my mail address on www.vichelp.com.au

 

[Albatross]

When is settlement?

I suspect you should talk to your lawyer who advised you on your purchase. If you only used a conveyancer, see a lawyer BEFORE settlement. It may well be settlement proceeds but with conditions attached, or a change in price. Doing something after the developer has the money in their pocket is likely to be difficult and expensive.

If you need a lawyer, you'll find my mail address on www.vichelp.com.au

Thanks Rod. Settlement due 14 days of Plan of Subdivision or Occupancy permit whichever the later; no indication yet other than ‘soon’. I’ll wait and see what developers come back with, hopefully this week. Getting legal advice pre-settlement makes sense!

 

[amberdreyer]

During this inspection with your builder, it is your responsibility to identify all of the defects and quality issues on your home/building. But, of course, its difficult for a home-owners without extensive building knowledge of the standards, and what to look for.. This is when a house inspection specialist becomes necessary, they put all the needed amendments in a report and make sure they have been rectified.