{"id":42823,"date":"2023-04-13T16:33:16","date_gmt":"2023-04-13T04:33:16","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=42823"},"modified":"2023-04-13T16:34:31","modified_gmt":"2023-04-13T04:34:31","slug":"real-estate-agents-and-property-developers-very-poor-form","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/real-estate-agents-and-property-developers-very-poor-form\/","title":{"rendered":"Real Estate Agent’s and property developer’s very poor form"},"content":{"rendered":"

PHOTO: Parkside Residences, Rochedale – Queensland<\/strong><\/p>\n

A couple has been slugged with a $210 a week rent rise after their home ownership dream was shattered.<\/p>\n

\n

A Queensland couple said they were left in \u201cshock\u201d after a developer building their dream home legally invoked a termination clause in the contract and they claim the property was offered up for sale just hours later for $250,000 more than the original price.<\/p>\n<\/div>\n

Thomas Fung and his partner signed a contract in July 2021 to buy a four bedroom townhouse in an off-the-plan development in the Brisbane<\/a> suburb of Rochedale.<\/p>\n

Mr Fung, 29, said they had purchased the property for $645,900 and put down a 10 per cent deposit to buy into the development known as Parkside Residences.<\/p>\n

\"Cohen<\/a><\/div>\n
\n
\n

Brisbane\u2019s buyer\u2019s agent to the stars<\/a><\/h2>\n<\/header>\n<\/div>\n

But the couple will no longer be able to live in their dream home because of the legal technicality.<\/p>\n

They have also been hard been hit by the rental crisis \u2014 with their rent hiked by a whopping $210 a week.<\/p>\n

Now, they have been left wondering how long it will take them to own a home after the developers Cannonview Developments Pty Ltd, activated the sunset clause to legally terminate the contract in February this year.<\/p>\n

\n
\"Thomas<\/div>\n

Thomas visited the site in December and found the townhouses construction seemed almost complete, he claimed. Picture: Supplied<\/strong><\/em><\/p>\n<\/div>\n

The young couple were also shocked to receive an email just four hours after their contract was terminated from a real estate agency, which they claimed was selling their townhouse for the staggering new price of $899,000.<\/p>\n

\u201cRochedale has become one of Brisbane\u2019s most popular suburbs given its proximity to the CBD, ongoing infrastructure and optimal capital growth. Now is the time to secure THE LAST REMAINING dream town home,\u201d the email said.<\/p>\n

It also revealed the townhouses were \u201calmost complete\u201d and due to be delivered by April this year.<\/p>\n

But the price increase would have meant the couple needed to find an extra $254,000 at the time to own the home.<\/p>\n

\"Jess<\/a><\/div>\n
\n
\n

25yo Brisbane property owner\u2019s surprising way to score first home<\/a><\/h2>\n<\/header>\n<\/div>\n

\u201cIt was just a shock \u2026 I said \u2018Where can I find another $200,000 to get it again?\u2019 And with the rental crisis and interest rates rising now we can\u2019t save up money. I am losing money and losing the opportunity for the home,\u201d Mr Fung told news.com.au.<\/p>\n

\u201cBasically it\u2019s all about money and I just want to warn everyone.\u201d<\/p>\n

But Cannonview Development\u2019s lawyers told news.com.au that its client was not aware of the property being re-marketed before 6 March this year.<\/p>\n

\u201cIt is common knowledge that the building industry is in crisis because of supply chain disruptions, skilled labour shortages and skyrocketing costs of materials,\u201d they said. \u201cAccordingly, any change in price reflects the increasing costs that our client is currently being challenged by.\u201d<\/p>\n

\n
\"The<\/div>\n

The email the couple received selling the townhouse for $899,000 just four hours after their contract was terminated. Picture: Supplied<\/strong><\/em><\/p>\n<\/div>\n

In Queensland, there is nothing the couple can do about the termination of their contract as the developer has done nothing wrong under the law.<\/p>\n

\u201cFor me I want to warn the people that if they try to purchase an off-the-plan property in Queensland this is what they can do,\u201d he added.<\/p>\n

\u201cNow with the rental crisis, just for my rent \u2026 for a two-bedroom apartment it was $485 before and during Covid and now they are asking for $695 if we want to renew.<\/p>\n

\u201cSo just in the space of two years it increased by $210. Fortunately my partner and I are professionals and can afford the money but we won\u2019t be able to save much.\u201d<\/p>\n

The dietitian, whose partner works as a social worker, said while his parents weren’t wealthy they had dipped into their retirement fund to help them secure the townhouse and instead their dreams have been shattered.<\/p>\n

But Cannonview Development\u2019s lawyers said Mr Fung had originally requested the sunset clause date be reduced to 30 June 2022, however the parties came to a compromise by setting it for 31 December 2022.<\/p>\n

\u201cThe possibility that property registration may not occur by the sunset date is an inherent risk associated with off-the-plan contracts,\u201d they added.<\/p>\n

\u201cIn this case, the result of the buyer\u2019s decision was that the sunset date fell significantly short of what was required to complete the development. It was the buyer\u2019s decision to accept this risk.\u201d<\/p>\n

\n
\"The<\/div>\n

The development site under construction back in August 2022. Picture: Google<\/strong><\/em><\/p>\n<\/div>\n

In Queensland, sunset clauses are legal and have been used on other developments in Brisbane and the Gold Coast.<\/p>\n

Other states around Australia have moved to put more protections in place for buyers who are purchasing off the plan.<\/p>\n

In New South Wales and Victoria, special laws were established requiring sellers to get consent from the purchaser or the Supreme Court before using the sunset clause to terminate an off the plan contract.<\/p>\n

Mr Fung has said Queensland law really needed to catch up with other states to offer buyer\u2019s more protection.<\/p>\n

\u201cIt\u2019s just very unfortunate. We paid rent for one year and all the extra costs add up,\u201d he said.<\/p>\n

\u201cI did purchase some furniture last year and I\u2019m lucky that the place wasn\u2019t charging any storage fees for the new furniture, but I\u2019m not sure if I can use it in another house as it\u2019s tailor made for the floor plan. It has messed up our plans.\u201d<\/p>\n

\n
\"The<\/div>\n

The real estate advertisement for the property included these images. Picture: Supplied<\/strong><\/em><\/p>\n<\/div>\n

\n
\"The<\/div>\n

The real estate email advertising showed a drawing of the building. Picture: Supplied<\/strong><\/em><\/p>\n<\/div>\n

Currently working with NDIS clients, Mr Fung said he was particularly angry as he had consistently chased for updates on the property.<\/p>\n

He claimed his own visits to the site suggested the homes would be complete before the sunset clause was reached in December last year.<\/p>\n

In a trail of emails seen by news.com.au, he was told by a real estate agent in August last year that the townhouses were due to be complete by November 2022.<\/p>\n

In September, the couple were told the homes were still due to be completed in November and be titled in December \u2013 and with the Fung\u2019s lease set to end in December \u2013 the property manager advised them to go month-to-month on the rental contract.<\/p>\n

However, in November the couple were told completion was pushed out to January due to supply chain issues and trade shortages. Then this was further delayed until February with settlement expected in March.<\/p>\n

\n
\"The<\/div>\n

The plans for the development. Picture: Supplied<\/strong><\/em><\/p>\n<\/div>\n

A month later the couple were told the completion of the homes would not occur until April with settlement in May.<\/p>\n

But just three days after an email update to Mr Fung, the bombshell letter from the lawyer’s developers dropped advising the couple their contract had been terminated.<\/p>\n

Cannonview Developments lawyers said completion of the development Parkside Residences has been subject to significant delays associated with material supply and trade shortages as well as prolonged delays with local authority sewer construction.<\/p>\n

\u201cAs a result, any anticipated time frames provided by our client were purely estimates, as it would not have been possible to provide a definite registration date,\u201d they said.<\/p>\n

\u201cOur client endeavoured to provide as accurate a time frame as possible, however registration of this development has still not occurred, which is some six weeks since (Thomas) Fung\u2019s contract came to an end and over three months from the sunset date in that contract.\u201d<\/p>\n

Unfortunately for the couple, it\u2019s not the first time they\u2019ve had their property plans fall through.<\/p>\n

\u201cWe did try to look for land back in 2020 and we got into the contract but that place was never settled unfortunately and then I had to break the contract as there was no response from the seller,\u201d he explained.<\/p>\n

\u201cIt was a private seller and we waited almost a year and tried to contact the seller\u2019s agents and they said they couldn\u2019t contact them either.\u201d<\/p>\n

\n
\"Mr<\/div>\n

Mr Fung claimed he later saw the property advertised for $849,000. Picture: Supplied<\/strong><\/em><\/p>\n<\/div>\n

\n
\n
<\/div>\n<\/div>\n<\/div>\n

The couple are not alone in being stung by the sunset clause issue, with three other Queensland families left\u00a0angry and distressed\u00a0after the developer legally ended the contract for their dream home.<\/p>\n

A Queensland mum was left\u00a0\u201ccrying every day\u201d\u00a0after her contract was cancelled due to their sunset clause.<\/p>\n

Last year a spokesperson from the Office of Fair Trading told news.com.au that the Queensland Government was\u00a0examining the issue\u00a0of termination of off-the-plan contracts via sunset clauses, as part of the Property Law Review.<\/p>\n

They added QLD Attorney-General Shannon Fentiman had advised that she intended to introduce legislative amendments to address the issue by the end of the year \u2013 but four months into 2023 and this still has not happened.<\/p>\n

Instead, it appears the QLD government is stalling on implementing any reforms with no resolution in sight.<\/p>\n

\n
\"Queensland<\/div>\n

Queensland Attorney-General Shannon Fentiman has failed to change the law to address the issue. Picture: Dan Peled \/ NCA NewsWire<\/strong><\/em><\/p>\n<\/div>\n

A spokesperson for the QLD Office of Fair Trading said in August and September 2022 that public consultation was held on off-the-plan residential property contracts, including the use of sunset clauses by property developers and early release of deposits.<\/p>\n

\u201cResponses to the consultation process are informing government deliberations and decision-making. However, property law is a complex and technical area that differs between jurisdictions, and this complexity was reinforced in the consultation responses,\u201d they told news.com.au.<\/p>\n

READ MORE VIA NEWS.COM.AU<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

PHOTO: Parkside Residences, Rochedale – Queensland A couple has beenRead More →<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":42826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[461747081],"tags":[478098538,478107447,478125205,478125199,478125209,478125208,478125200,478114631,478125201,478125203,478125202,478125207,478120063,478121054,478125204,478125206,478104752],"class_list":["entry","author-data123nz","post-42823","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australian-property-real-estate-news","tag-brisbane","tag-brisbane-suburb","tag-brisbane-townhouses","tag-cannonview-development","tag-parkside-residence","tag-parkside-residences","tag-queensland-couple","tag-rochedale","tag-rochedale-development","tag-rochedale-property","tag-rochedale-real-estate","tag-rochedale-townhouses","tag-sunset-clause","tag-termination-clause","tag-thomas-fung","tag-townhouse-development","tag-townhouses"],"yoast_head":"\nReal Estate Agent's and property developer's very poor form - 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