27 OCTOBER 2023
Nearly 100 people who purchased defective apartments in a Western Sydney development will have their contracts rescinded and deposits returned under a landmark agreement.
Key points:
- Government inspectors found “serious defects” in 2021 and stopped buyers from moving in
- Developer said “serious defects” had been rectified prior to the receiver being appointed
- Apartments can’t be sold for 10 years, and future buyers must be alerted to any defects
The undertaking, struck between the NSW building commissioner and a developer in receivership, is the first of its kind and designed to serve as a caution for financiers considering lending to risky developers.
Karen Stiles, executive officer of the apartment owners’ peak body the Owners Corporation Network (OCN), said it was and “incredible breakthrough”.
“It’s a wonderful thing for those people. I cannot imagine the stress they have suffered,” she said.