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walking away from an apartment bought off the plan

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pjw911 | 05 Nov 2016, 09:34 PM Agree 0
hi I have a question about buying off the plan my step daughter is buying an apartment off the plan and is about to settle soon in NSW ,she and her partner have just broken up , they have paid the stamp duty and the deposit ,if she walks away from the whole thing will she have a bad credit rating ,or just loose there deposit ? .
  • | 16 Nov 2016, 02:46 PM Agree 0
    Just a note to say that she needs proper legal advice and go back to the developer/seller, but here is some information:

    http://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Buying_property/Buying_off_the_plan.page
    And a SMH article: http://www.abc.net.au/news/2016-05-26/apartments-off-the-plan-carry-huge-risks-for-buyers/7449296

    It seems it depends if you have a sunset clause (and when that ends) whether it can be cancelled OK. We have an open credit record system in Australia so your daughter can peruse her record and score. It is free if you wait 10 days. See https://www.veda.com.au/
    Good luck with enquiries... it pays to fight in the most logical way first before giving up on the money.
  • Jennifer Lancaster | 16 Nov 2016, 03:02 PM Agree 0
    Please read up on the legalities of contracts with help of Fair Trading, including Sunset Clauses.
    http://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Buying_property/Buying_off_the_plan.page?

    VEDA holds Australian credit records and scores, and if prepared to wait 10 days, getting the information is free. Doesn't look good for the deposit if it has gone past the final date but the main thing is to get legal help to avoid being liable for the entire contract amount. Another option is if its still a viable investment to look for another private buyer.

    Also check out this article.
    http://www.abc.net.au/news/2016-05-26/apartments-off-the-plan-carry-huge-risks-for-buyers/7449296 Extract from SMH:
    "We found that up to 50 percent of cases the value actually came in lower than the contract price."
    If this is helpful please see my book, How to Control your Financial Destiny, on Amazon.
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