A retired couple from Queensland found themselves in a difficult situation just before Christmas when a developer canceled their contract for a luxury apartment using a sunrise clause. This clause permitted the developer to end the agreement unilaterally.
After selling their business in 2024, Pascale and Daniel Sinclair had invested in a three-bedroom flat at Ruby Ruby in Milton, with dreams of making it their permanent residence.
“It remains uncertain how the courts will view clauses like these, as they grant termination rights solely to the developer, unlike sunset clauses where both parties have the option to end the contract,” remarked a legal expert.
The Sinclairs have been given until January 16 to decide whether to agree to the new price or to accept a refund of their deposit along with interest.
Now facing a much-changed market, the couple fears they may no longer be able to afford a similar property.
They are concerned they have now been priced out of the market.
“I mean the building itself is phenomenal, it’s spectacular, but it’s definitely not worth $27,000 a square metre,” Mr Sinclair said.
In a statement to 9News, Kokoda Property Group said it became clear that additional revenue must be secured for the development of Ruby Ruby to be feasible and that the group exercised its contractual rights to terminate the contracts.
Early works have commenced and construction will continue once financing conditions are met.
