Am I Going to Lose Everything?
Hi Scott,
About 18 months ago I put a $15,000 deposit on an off-the-plan apartment. The idea was to sell my home for the same amount as the apartment and move in. But I have not sold my home and it is now worth less than the apartment. I have been caught by the development finishing six months early, combined with a flat housing market in Perth.
I asked for an extension and got 30 days from settlement, but after that I get penalised. So can I legally get out of this deal, or can they just bankrupt me? I only have my house, my car and a very little super, as I had a stroke in 2002 and used my super then. I also get easily bamboozled due to the stroke.
I work two days a week and am on a disability pension, earning approximately $44,000 per annum. I am 71 (and single), so my ability to get a loan or pay one off are minimal. Please help me -- I cannot see any way out except one, and that would leave a big mess for my children. I would not do that.
Jenny
Hi Jenny
You’re definitely in the dung ... I just don’t know how deep you are.Now, some people believe they can walk away from an off-the-plan development and only lose their deposit.
Yet that’s not always the case.
Ultimately it depends on what’s in the contract you signed, and how desperate the developer is … and given Perth apartment prices are cratering at the moment, I’d wager they’re as desperate as I was at my high-school formal.
The worst-case scenario is that your developer swallows your deposit, hits you with financial penalties for not settling, and then sues you for the losses of on-selling your apartment (when they eventually find a buyer).
But that’s all in the future, maybe.
Let’s you and I just deal with the next 30 days.
It’s highly unlikely you’ll be able to settle in the next month, and it’s also highly unlikely you’ll get bridging finance. So here’s my advice: see a lawyer immediately.
Let me be crystal clear, Jenny. Put down the newspaper. Pick up the telephone. Call a lawyer.
Have them review your contract, then ask their advice on mounting a case for being released from the contract due to your impaired judgement.
What are you doing still reading, Jenny?
Get on the phone. Now!
Scott
