Their “heartbreaking” experience has left their home ownership dream in tatters, while they have also been slugged with a rent increase.
A Queensland couple’s “heartbreaking” experience has left them without their dream home after the developer legally and properly invoked a termination clause in the contract, which they claim has now left them $200,000 worse off.
Aleksandra Drapinska and her husband signed a contract in August 2021 to buy land for $306,000 from a developer and separately found a builder to construct their dream home in the Brisbane suburb of Hillcrest.
The couple purchased the land in a development known as Parkview Green, and were told in an email that the land’s infrastructure work had been delayed, and it was expected that all works would be finished by July 2022.
It was estimated that settlement would “likely occur” in mid-July 2022 but there were further delays.
Ducks even took up residence on the land after it flooded, pictures showed.
Now, the couple will no longer see their dream home built following a letter they received at the end of March — where the developers Lark Property Development Pty Ltd activated the sunset clause to legally terminate the contract in March this year, which was the developer was legally entitled to do under the agreement.
“It was absolutely heartbreaking – just the amount of time (lost) – it was just devastating both for my husband and myself. I was shaking when I got that letter, honestly I still haven’t gotten over it,” Ms Drapinska told news.com.au.
“If we purchased the land now it’s valued at between $450,000 and $470,000, it’s just horrible … The construction price went up by about least $70,000, so when you add all that up and if we had built next door we would be $200,000 up.
“But now in order to fulfil that dream we have to pay an extra $200,000 and I’m not sure if I’m going to be able to do that.”
Ducks can be seen swimming on the site. Picture: Supplied
The Parkview Green development site. Picture: Supplied
The 36-year-old added it was set to be their first home together in Australia and it had taken a number of years to try and realise their home ownership dream.
“My husband is very conservative when it comes to loans so he wanted to have a substantial deposit,” she added.
“He didn’t agree to go and buy a property when we had a 10 per cent deposit, he wanted at least 20 per cent so it took us longer as he wanted to feel financially safe.
“We have been living in at tiny duplex paying super low rent in order to save up and buy, so we have been paying ridiculously low rent of $275 for many years, as our was goal save up to buy a house.”
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Aleksandra Drapinska and her husband have been left heartbroken they never got to build their dream home. Picture: Supplied
But now the couple’s rent has also been hiked to $330 a week – a 30 per cent increase — and Ms Drapinska said the legal termination of the contract had “severely delayed” their home ownership dream as land and construction prices have soared.
“Trying to find land now is just so difficult and even when we do find something it’s so overpriced and I don’t know if I can find something within budget,” she explained.
“We are not able to afford a home in the same suburb or we will have move further to the outskirts or other areas and travel to work for two hours, rather than one so that’s the repercussions.”
The strata management expert added she had put her life on hold waiting for the dream home.
“I wanted to be in that home by the middle of 2022, so we are already a year past that time when the construction was meant to finish. I delayed travel to Poland to see my parents and I hadn’t seen them for three years because of Covid,” she said.
“I waited and thought the building would start soon so in the end I waited and waited and didn’t go until Christmas 2022. At that time I knew it was very unlikely that land would settle.”
The flooding on the site. Picture: Supplied
The letter from Lark Property Development’s lawyers legally terminating the contract in March this year said “due to unforeseen circumstances imposed by our client’s previous lender, our client has not been able to complete the registration of the land within 18 months of the contract date”.
News.com.au is not suggesting that Lark Property Development’s termination was not proper or within its rights under the contract, nor does news.com.au suggest that they’ve engaged in any wrongdoing.
Ms Drapinska said her lawyers had to chase for updates on when the land would be settled.
A trail of emails seen by news.com.au in January 2022 said the buyers were advised the anticipated time frame for registration of the land was in March 2022.
Then May 2022, the lawyers inquired about estimated settlement after being advised it would happen in mid July 2022 but this did not occur.
Aleksandra Drapinska wants to see changes made to Qld laws. Picture: Supplied
The couple were told that the Land’s infrastructure work had been delayed and works would be finished by September with an estimated settlement likely to occur in October 2022, a letter from the lawyers in July that year said.
Accuro Maxwell, the lawyers for Lark Property Development Pty Ltd told news.com.au that due to the “private nature of the transactions with each respective buyers” they would not provide any comments publicly regarding the progress of the project.
“If any buyer has queries regarding their purchase they are welcome to contact our office to communicate privately,” they added.
A Queensland couple’s “heartbreaking” experience has left them without their dream home after the developer legally invoked a termination clause in the contract. Picture: Supplied
In Queensland, sunset clauses are legal and have been used on other developments in Brisbane and the Gold Coast.
Other states around Australia have moved to put more protections in place for buyers who are purchasing off the plan.
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.
Ms Drapinska said while she knew the risk of buying off the plan, her lawyer told her it would be unlikely to happen.
“I never expected it would happen to me at all but knowing this and having experienced it I would never buy unregistered land. I would rather buy a very old ugly house and demolish it myself and build or buy from land where people couldn’t afford to build, but where it is registered land and its ready to build,” she said.
“I’m never going back to the off the plan market.”
Ms Drapinska lives close by so could see what was happening on the site. Picture: Supplied
The couple said they would never buy off the plan again. Picture: Supplied
Last year a spokesperson from the Office of Fair Trading told news.com.au that the Queensland Government was examining the issue of termination of off-the-plan contracts via sunset clauses, as part of the Property Law Review.
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 – but four months into 2023 and this still has not happened.
Ms Drapinska was highly critical of the government’s failure to implement changes to sunset clause laws like in other states.
“It’s very disappointing … and I wouldn’t be surprised if it doesn’t happen for another few years,” she said.
“This is something that should have changed yesterday – we should have followed other states.”
Queensland Attorney-General Shannon Fentiman. Picture: David Clark
A spokesperson for the QLD Office of Fair Trading previously told news.com.au that in August and September 2022 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.
“Responses 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,” they told news.com.au.
“Since the pandemic, the construction industry has also faced challenges such as rising costs and delays with obtaining building products.
“It is important the Queensland government continues to actively and thoroughly consider all matters and solutions that appropriately address the issues at hand, without inadvertently causing unintended consequences.”
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