Chandos Group 77 Ridge St off-the-plan development
Hi fellow property hunters,
I’m currently consider to buying the above property in Gordon NSW from a developer named Chandos Group 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 and other risks follows.
1. Small and unknown, I can’t find any information about the developer and only able 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 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 or pull out without any reasonable care to the project 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 >5% change. “The Purchaser acknowledges that the right of rescission under Clause 63.4 is limited to the area of the Property only”
I think the contract is written to protect the vendor only and pass all the risks to the buyer. I 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 current market condition and incentives to 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 off-the-plan project I’ve seen before and unregistered vendor and no DA approval is really bothering me as other developer are usually have them. Any thoughts guys? Thanks
Hi Dr Watson Thanks for the reply. The above issues are only a few that pointed out from my solicitor and we been trying to amend the contract so I have more right to rescind for other issues (not only for >5% change). But the solicitor on the other side is being unreasonable and not accepting any changes. Clearly, the developer knows the current issues (not won the land and no DA to start with = anything can go wrong) and not willing to take any risks with an attitude of take all risks and sign the contract or I sell it to someone who is silly enough to take all risks.
Don't accept ANY risks without clear and viable mitigations in place. When these things turn to poop it's always the creditors and purchasers who have to do the wiping and flushing.
Also, OTP developments will already include the developer's profit (can't get finance without it), so you have no real assurance that you are paying a fair price.
Unless it's a strongly and consistently rising market, and property is currently demonstrably undervalued, I'd say give it a miss.
Thanks for the replies. I decided to pull out from this purchases as there are simply too much risks compared to other NORMAL off-the-plan sales and the developer is definitely not ready with this project (without DA approval-they shouldn't even start selling this property). Also, I don't like their attitude of no changes to the contract and if you don't sign as it is then we will sell it to someone else. just ridiculous! It was most unpleasant experience compared to my other property purchases and never seen this very stubborn and unreasonable developer before. I guess this small developer is in the market to just make a quick $ and not interested in building a reputation for a long term business. Watch out for this guys (Chandos Group) as they may appear again in a different name (seems they are setting up a company for each project and wind up after the project is finished)
I purchased an apartment from this developer and didn't have a problem at all. I have also purchased a 1 bedroom apartment in their previous development and never had any issues. I am quiet surprised to read that you had so many issues... you may need to change your legal representation... the contract I signed clearly stated that I may rescind if my apartment is not built according to the plan or if it is not built on time. The contract further states that I can also rescind if the developer doesn't commence the development within 9 months...
I would like to add to my previous reply that you statements are incorrect. I actually live in one of the apartments at 96 chandos st st leonards and would like to state that the walls are all concrete, the whole building is solid concrete. they are not plasterboard... also as an owner within this development I am very happy with the finishes, they are not cheap in fact they used daiken airconditioners, and upmarket kitchen appliances. externally the building is very near and has no issues.
I would like to add to my previous reply that you statements are incorrect. I actually live in one of the apartments at 96 chandos st st leonards and would like to state that the walls are all concrete, the whole building is solid concrete. they are not plasterboard... also as an owner within this development I am very happy with the finishes, they are not cheap in fact they used daiken airconditioners, and upmarket kitchen appliances. externally the building is very near and has no issues.
Hi propertyinvestor1, I was completely forgot about this thread but as you sating my statement is incorrect and implying that I’m a liar, I gotta defend my ground as I know it is true and correct. I’m not too sure about the story of their previous development in St Leonard but their current project in Gordon doesn’t even have DA. Therefore, there are so many clauses in the contract to protect vendor’s ass but not the buyer. Also, compared to many other contracts that I’ve seen before, this contact is very unfairly written.
The below is the Purchaser’s rights in the contract but I don’t see any of rights you mentioned. If thread allows I would even include the full contract to show everyone that how unfairly written the contract is!! The strata plan only shows the blank area with total size and doesn’t show any details of lay out. Only the floor plan/concept plan shows the details of the unit. Usually other contract refers to plans (inc. strata plan, floor plan and other plans) then you can assure that you have a right to rescind if the finished product is not in accordance with the plan. I was trying to change the wording so that I have a right to rescind if they not build according to the floor plan/concept plan but the vendor refused. Also, refer to the 63.5, it says clause 63.4 is limited to the area and excludes all other variation. Thus, you only have a right to rescind if >5% change. As there is no DA, anything can change and while I was reviewing the contract there were DA changes and it changes of floor plan and size. My unit got reduced over 2 square meters after that. Also, they initially told me that DA will be approved in Oct then they keep delayed and now we are in Jan there is still no DA.
Anyway, tell me by quoting the specific clauses where you seen the rights you mentioned in your comments.! It’s a legal document, if it is not in the contract DO NOT ASSUME that you will have the right!
Btw – if you are really living in the 96 chandos st st leonard (I been there inside one of the units for rental inspection), touch, knock and feel the emptiness (not solid) of the wall. It is a definitely cheap plaster board in the most of walls and definitely not full brick or masonry. If you can’t tell the difference, well, I don’t blame you as not everyone has building and building products knowledge.
Purchaser’s Right to Rescind 63.4 If there is a variation or amendment in the area of the Property as shown on the draft Strata Plan and those shown on the Strata Plan as registered and such variation or amendment reduces the total area of the Property by more than 5%, the Purchaser may rescind this Contract by written notice to the Vendor whereupon the provisions of clause 19 shall apply. 63.5 The Purchaser acknowledges that the right of rescission under Clause 63.4 is limited to the area of the Property only and specifically excludes any variation in unit entitlement in relation to any variation in which the Purchaser may make a claim, requisition, rescission, delay completion or terminate this Contract. 63.6 The right of rescission under Clause 63.4 must, to be effective, be exercised by the Purchaser within 14 days after the Purchaser’s solicitor receives written notice from the Vendor’s solicitor that the Strata Plan has been registered. 63.7 If the Purchaser does not exercise the right of rescission under clause 63.4 within the time required under clause 63.6, the right of rescission conferred on the Purchaser under clause 63.4 shall lapse and this Contract shall remain binding in all respects.
propertyinvestor1
20 Jan 2014, 03:46 PM
I purchased an apartment from this developer and didn't have a problem at all. I have also purchased a 1 bedroom apartment in their previous development and never had any issues. I am quiet surprised to read that you had so many issues... you may need to change your legal representation... the contract I signed clearly stated that I may rescind if my apartment is not built according to the plan or if it is not built on time. The contract further states that I can also rescind if the developer doesn't commence the development within 9 months...
Also, as there DA delays they keep changing their commencement date and sunset date. While I negotiating my contract they delays by 6 months and I don’t seen anywhere in the contract that you can also rescind if the developer doesn't commence the development within 9 months.
AGAIN tell me by quoting the specific clauses where you seen the rights you mentioned in your comments! Otherwise I claim that your statement is INCORRECT!
Read the below clauses in the contract and tell me how you interpret. I don’t see any of rescind right for development not commencing within 9months but worst, you are not entitle to make any objection of delay.
59.2 If the Development Activities have not been commenced by the Vendor by the Commencement Date the Vendor may, by notice in writing to the Purchaser, rescind this Contract. 59.3 The Purchaser acknowledges and agrees that, notwithstanding any provision of this clause, this Contract or any rule or law or statute to the contrary, the Vendor is under no obligation to commence the Development Activities prior to the Commencement Date or at any other time. 59.4 The Purchaser shall not be entitled to make any objection, requisition claim or terminate this Contract in respect of the failure of the Vendor to commence the Development Activities prior to the Commencement Date. 59.5 The Purchaser acknowledges and agrees that if the Vendor rescinds this Contract pursuant to clause 59.2 the Vendor will not be liable to pay to the Purchaser any damages, costs or expenses.
60.4 The Purchaser acknowledges and agrees that the Vendor is entitled to extend the Sunset Date by twelve (12) months by giving written notice to the Purchaser no later than three (3) months prior to the Sunset Date.
Property infestor 1 is obviously a representative of the developers or builders you are concerned about but saying that dont just buy 1 , get 2 or 3 . Property is the best investment. Good luck.
LOL They still haven't got the DA approval despite that they said it will be approved early this year 2014. From my source, apparently, the project is now terminated by the developer because of their financial problem. I’ve warned everyone not to trust these guys. Anyway good luck to all property hunters.
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