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WA Decided to Withdraw Building Project - Legally Get Out of It?

Discussion in 'Australian Consumer Law Forum' started by Dana, 7 July 2015.

  1. Dana

    Dana Member

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    My husband and I have signed with a land developer for a block of land (Perth, NOR) in February and pay a $1000 fee. We were told that the titles will be available in March/April. We had to choose a builder (they didn’t accept to only buy the land and build later, they wanted to have a building contract also in place).

    After several meetings with a builder, we signed a PPA on the 18th of March. Unfortunately, without any notification (to the land developer, the builder or us), the City Council implemented some regulations (all garages had to be on the LHS for instance) which required some changes on the plans we signed on the 18th of March and paid $2000 for the drawings. At the next meeting we had, on the 4th of July, the new plans added another $30,000 on the expenses list (due to the council’s changes and the builder’s mistake that incorporated the a/c and blinds on the specifications, but missed to add these onto the costs). With the new costs exceeding our financial possibilities and adding a higher risk for us, we decided to withdraw from this project, but we have been told that there is no way out.

    Our loan approval is due to expire at the end of July, however the titles will be ready in the next 4 weeks or so.

    My question is: with no titles and no signatures from our side on the latest PPA, can we get legally out of this contract under property law (we accept that we will be losing the $3000 paid)?
     
  2. Amanda E

    Amanda E Well-Known Member

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    Did you end up getting out of the contract, but having to forfeit the deposit?
    That's what I would have expected based on what you said (and you said you didn't actually sign the contract).
     
  3. Dana

    Dana Member

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    Thank you for your post Amanda. We ended up signing the contract.
     

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