VIC Claim Compensation Against Developer for the Delay of Settlement?

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Liza

Member
2 April 2017
2
0
1
Dear forum friends,

I received the following email today from the land developer:

''Unfortunately stages 1 to 4 have not progress as quickly as we would have liked and titles have been put back about 6 months. We first anticipated titles/settlement for stage 5 in July/August – due to the above circumstances, the developer made the decision not to wait for the current contractors, but to engage another company to complete stages 5 to 11.

At this stage we estimate completion for stage 5 in October, with settlement in November.''

I've paid a deposit on a lot in stage 5. I'm currently renting to wait for the settlement. I've checked the contract and there is nothing about compensation if the vendor delays the settlement.

Could anyone please tell me that if I can claim any liability from the land developer because they delayed the settlement for four months? And what can I do if they delays again?

Looking forward for a answer!

Appreciate for your help!

Best regards,
 

Rob Legat - SBPL

Lawyer
LawConnect (LawTap) Verified
16 February 2017
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Gold Coast, Queensland
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I'm not sure about the situation in Victoria (so you'll need to check and take this with a grain of salt), but with off the plan contracts in Queensland you should have a sunset clause somewhere in the contract. If the vendor isn't able to register the title and settle by that date (or however else it is worded), you generally have the right to terminate the contract and get your deposit back. Sometimes the developer has the right to terminate. Either way, getting survey plans for subdivision and development registered can be a complex undertaking. Having them delayed for a period of months is not unusual. It's very possible the delay is something that is frustrating the developer too (as they generally want to push these things through and get to the money).

There's a range of issues that can delay these, for example: securing additional funding for unexpected expenses, Council fees changing, additional reports/works needed based on the outcome of hydraulic surveys, environmental impact requirements because of the discovery of a particular plant/animal living on the land.
 

Liza

Member
2 April 2017
2
0
1
Dear Rob, Thank you for your detailed reply.

I'm not sure about the situation in Victoria (so you'll need to check and take this with a grain of salt), but with off the plan contracts in Queensland you should have a sunset clause somewhere in the contract. If the vendor isn't able to register the title and settle by that date (or however else it is worded), you generally have the right to terminate the contract and get your deposit back. Sometimes the developer has the right to terminate. Either way, getting survey plans for subdivision and development registered can be a complex undertaking. Having them delayed for a period of months is not unusual. It's very possible the delay is something that is frustrating the developer too (as they generally want to push these things through and get to the money).

There's a range of issues that can delay these, for example: securing additional funding for unexpected expenses, Council fees changing, additional reports/works needed based on the outcome of hydraulic surveys, environmental impact requirements because of the discovery of a particular plant/animal living on the land.