NSW Offplan apartment rescission contract request

[SkyVeronica]

My relative had purchased OTP back in 2014 in Sydney and it was supposed to finish around 2016 but at that time, the developer had sent her to sign to request for sunset clause extension till June 30 2018 in which she signed

The property was to be completed and settled around June but she got an email a few days ago saying now that it has been pushed back till at LEAST mid August again. She feels that she has enough and she is wondering if she can cancel the contract with penalty since it has passed the sunset clause date period?

Her solicitor seem to be not useful so thats why its better to ask here as it doesn't hurt to get more info

Your advice will be appreciated. Cheers

 

[Rob Legat - SBPL]

I don't know the specifics of NSW property law, so take these comments accordingly (I practise in Queensland, which is similar in general respects).

If your relative agreed to extend the sunset date to 30 June, 2018, then it has not yet passed the period in which the developer can settle. The proper action would be to:

a) Decline any request for a further extension of sunset period. Take care to review the contract terms about what happens in that case. The developer may then seek to terminate the contract; or
b) If the developer does not request an extension of date, do everything practically necessary to settle on 30 June, 2018. When the developer fails to do so, terminate in accordance with the terms of the contract. Making sure you are ready to settle is important. It is often the case that you must show you are 'ready, willing and able' to settle on the due date (or to the extent you are reasonably able to do so) in order to take advantage of rights to terminate under a land sale contract.