Hi fellow property hunters,
I?m currently consider to buying the above property in Gordon NSW from a developer named Chandos Group / Agent Jason Chen (Metro Domain or Raine & Horne Chinatown) and want get some advises from you guys. First, the price isn?t too bad compared to other off-the-plan development that selling at over 10% more than current market however, I think there are too much risks with this small unknown developer, agent and other risks follows.
1. Small and unknown, I can?t find any information about the developer and only lucky enough to find their previous development of 96 Chandos st St Leonards which isn?t well finished. The building looks roughly and cheaply finished with using a lot of plasterboards even between the units and common areas as well as many gaps and small unfilled holes. As the building is recently completed, there is no crack or structural damages to notice.
2. Refer to the contract, there are simply too many clauses to protect the vendor but not the buyer.
Unregistered vendor ? this guys don?t even own the land/property
No DA ? DA only submitted in August 2013
Due to above conditions, there are so many clauses to protect the vendor around whether the vendor has right to changes everything, pull out without any reasonable care to the project, even sell the project to someone else and etc.
They even removed the common clauses that the buyer can pull out if the completed unit is not according to plans and only right for the buyer is rescind the contract if >5% size change. ?The Purchaser acknowledges that the right of rescission under Clause 63.4 is limited to the area of the Property only?
There is a clause that force the buyer to settle even there is a special faults (special faults = structural fault and fault makes the property uninhabitable)
Also, very unusual clauses ?45.5 If the Purchaser breaches this Contract then in addition to the Vendor?s other rights under this Contract the Purchaser
45.5.1 Must remedy the relevant breach and where the breach is incapable of remedy, pay compensation to the Vendor?s satisfaction;
45.5.2 Must pay to the Vendor an amount equal to all costs, expenses, liability, loss or damage suffered or incurred by the Vendor as a result of the breach (together ?Loss?);
45.5.3 indemnifies the Vendor against Loss; and forfeits the deposit or any other monies paid under this Contract to the Vendor.?
I think the contract is written to protect the vendor only and passing all the risks to the buyer. The contract is poorly written by small suburb sole practitioner which requires a lot of clarifications, room for errors and excess use of ?vendor acting reasonably? even for the clauses where the purchaser has a right for determination. My solicitor has been trying to negotiate the contact to change/put some reasonable clauses but they been unreasonably deny all changes and saying things like ?sign now or we will sell it to someone else?. Due to the current market condition and incentives to a new buyer, I think there are so many dodgy builder/agent who thinks they can do anything. I think there are simply too much risks compared to any other NORMAL off-the-plan project I?ve seen before and unregistered vendor and no DA approval is really bothering me as other developers are usually have them. Any thoughts guys?
I?m currently consider to buying the above property in Gordon NSW from a developer named Chandos Group / Agent Jason Chen (Metro Domain or Raine & Horne Chinatown) and want get some advises from you guys. First, the price isn?t too bad compared to other off-the-plan development that selling at over 10% more than current market however, I think there are too much risks with this small unknown developer, agent and other risks follows.
1. Small and unknown, I can?t find any information about the developer and only lucky enough to find their previous development of 96 Chandos st St Leonards which isn?t well finished. The building looks roughly and cheaply finished with using a lot of plasterboards even between the units and common areas as well as many gaps and small unfilled holes. As the building is recently completed, there is no crack or structural damages to notice.
2. Refer to the contract, there are simply too many clauses to protect the vendor but not the buyer.
Unregistered vendor ? this guys don?t even own the land/property
No DA ? DA only submitted in August 2013
Due to above conditions, there are so many clauses to protect the vendor around whether the vendor has right to changes everything, pull out without any reasonable care to the project, even sell the project to someone else and etc.
They even removed the common clauses that the buyer can pull out if the completed unit is not according to plans and only right for the buyer is rescind the contract if >5% size change. ?The Purchaser acknowledges that the right of rescission under Clause 63.4 is limited to the area of the Property only?
There is a clause that force the buyer to settle even there is a special faults (special faults = structural fault and fault makes the property uninhabitable)
Also, very unusual clauses ?45.5 If the Purchaser breaches this Contract then in addition to the Vendor?s other rights under this Contract the Purchaser
45.5.1 Must remedy the relevant breach and where the breach is incapable of remedy, pay compensation to the Vendor?s satisfaction;
45.5.2 Must pay to the Vendor an amount equal to all costs, expenses, liability, loss or damage suffered or incurred by the Vendor as a result of the breach (together ?Loss?);
45.5.3 indemnifies the Vendor against Loss; and forfeits the deposit or any other monies paid under this Contract to the Vendor.?
I think the contract is written to protect the vendor only and passing all the risks to the buyer. The contract is poorly written by small suburb sole practitioner which requires a lot of clarifications, room for errors and excess use of ?vendor acting reasonably? even for the clauses where the purchaser has a right for determination. My solicitor has been trying to negotiate the contact to change/put some reasonable clauses but they been unreasonably deny all changes and saying things like ?sign now or we will sell it to someone else?. Due to the current market condition and incentives to a new buyer, I think there are so many dodgy builder/agent who thinks they can do anything. I think there are simply too much risks compared to any other NORMAL off-the-plan project I?ve seen before and unregistered vendor and no DA approval is really bothering me as other developers are usually have them. Any thoughts guys?
