Warning to home-buyers: get-out clause can lift cost
A smart practice widely condemned when it was adopted by a property developer in Queenstown has found its way to Christchurch.
Sunday, February 29th 2004, 12:09PM
by The Landlord
Buyers who had paid deposits on the first 48 sections in the Ellington Estate Development in Mairehau-Shirley have been told their contracts are no longer valid after the developer failed to get a resource consent by February 20.A get-out clause in Ellington's contract with section buyers allows the developer to break the contracts even though the buyers believed a deposit had secured the land.
The practice was criticised last year after it was highlighted in a wrangle over a large Lake Hawea development, when Queenstown developer Chris Streat cancelled purchase contracts on 15 sections in the Grandview subdivision.
He then upped the individual section prices by as much as $40,500.
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