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Ask RiotACT: Issues with IVAR Villa (Franklin)

By maulik1979 - 1 February 2016 9

Ask RiotACT

I have purchased an off-the-plan property in IVAR Villa (Franklin) a few months ago. I was advised that construction would start in September 2015 but nothing has happened yet. I would like to know if anyone else has had this type of experience with off-the-plan properties and the options that I have.

Also, has anyone purchased a property in IVAR Villa?

What’s Your opinion?


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9 Responses to
Ask RiotACT: Issues with IVAR Villa (Franklin)
riotim 2:32 pm 21 Mar 17

I just purchased the second last unit available in this complex. Construction is now well under way and I was advised that completion is looking at June/July this year.

maulik1979 9:58 pm 27 Feb 16

Thanks Everyone for your comments. I will contact solicitor and will check further options available.

rubaiyat 1:37 pm 03 Feb 16

Basically you are buying a very expensive pig in a poke from people who you only trust because of your good faith (not theirs) and they are telling you what you want to hear.

dungfungus 1:09 pm 03 Feb 16

madelini said :

dungfungus said :

Get your deposit back and thank your lucky stars you are no longer involved.

If the contract is exchanged, it’s binding and rescinding now would forfeit the deposit. While off-the-plan contracts usually only require a 5% deposit in the first instance, I can guarantee that there will be an annexure or special condition where the buyer is liable for the full 10% deposit if they rescind – meaning that the OP would have to shell out more money to get out of the contract.

The best course of action is to contact your solicitor. Confirm the arrangements date, request an update from the agent, and get a written statement of planned construction date from the seller’s solicitor.

You are quite correct. I was making that remark on the assumption that the OP may be able to eventually get the deposit back.
I mentioned on another thread last week that Daryl Dixon (on his regular ABC Radio Nightline slot) had warned investors to avoid “off the plan unit buys” in Canberra as a lot of contracts were being repudiated and deposits forfeited.
And it sometimes doesn’t end there as the vendor can sue for the difference if there is a downturn and values fall.

madelini 9:57 am 03 Feb 16

dungfungus said :

Get your deposit back and thank your lucky stars you are no longer involved.

If the contract is exchanged, it’s binding and rescinding now would forfeit the deposit. While off-the-plan contracts usually only require a 5% deposit in the first instance, I can guarantee that there will be an annexure or special condition where the buyer is liable for the full 10% deposit if they rescind – meaning that the OP would have to shell out more money to get out of the contract.

The best course of action is to contact your solicitor. Confirm the arrangements date, request an update from the agent, and get a written statement of planned construction date from the seller’s solicitor.

rubaiyat 6:57 pm 01 Feb 16

Surely your Real Estate Agent told you “But EVERYONE is buying Off Plan!”

Which is why I tell them, “Exactly why I AM NOT, particularly in Canberra”.

All you bought was a vague promise, from someone who works in an industry notorious for not meaning what they say.

The Mood Board & any Demo Interiors are usually labelled “Indicative of finishes and design”. You look at it optimistically and in good faith, they look at it as just a sales pitch, that you never get to keep anyway.

dungfungus 5:56 pm 01 Feb 16

Get your deposit back and thank your lucky stars you are no longer involved.

madelini 2:42 pm 01 Feb 16

This is a fairly common issue. Talk to your solicitor and ask them to review the conditions of the contract – there is often an “arrangements” date that is included in the special conditions, that will be when the funding/approvals should have been granted by. If there is no arrangements date, check the sunset/completion date; while these vary and it depends on the builder, it will give you an indication of when construction is due to be completed. Double check the extension clause as well.

It also depends on where you got the September 2015 date from. Construction usually commences once the approvals and finance have been granted; this could be triggered once a certain amount of early sales have exchanged. If the real estate agent gave the September date, keep in mind that it might have been the intention at that point in time to have construction underway by then, which also means that it might have been an optimistic intention. If you’re worried, get your solicitor to ask the seller’s solicitor for more information, and have them provide it in writing.

Ezy 10:50 am 01 Feb 16

This is pretty common. Chat to your solicitor.

I have had friends buy land in Tralee (now renamed South Jerrabomberra) and nothing has happened in two years.

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