A retired couple have been left devastated after their contract to purchase a multi-million pound dream home was terminated by the developer just days before Christmas, citing a little-known contractual clause.
The Dream That Turned into a Nightmare
Retirees Danny and Pascale Sinclair paid a substantial £257,000 deposit on a three-bedroom apartment within the Ruby Ruby development in Milton, inner-city Brisbane. They had purchased the off-the-plan property for £2.6 million in 2024 after selling their business, believing they were securing their future home.
However, on December 23, they received an email from the Kokoda Property Group informing them the agreement was being terminated. The developer invoked a 'sunrise clause', a provision often related to construction start dates, allowing them to cancel the contract due to escalated costs and builder delays.
A Staggering Price Hike and Tight Deadline
Following the termination, Kokoda has re-offered the 178 luxury apartments at significantly higher prices. The Sinclairs were given the option to repurchase their apartment for £3.815 million, presented as an eight per cent discount on a new asking price of £4.14 million. This represents a staggering increase of approximately 47 per cent on their original agreed price.
The couple have been given until January 16 to decide whether to pay the extra million or accept a refund of their deposit plus interest. Mr Sinclair expressed his shock and frustration at the timing and the pressure of the short deadline, stating, "It was only three weeks over Christmas. It's crazy, and I reckon they chose that timing to cause the most disruption."
Developer Cites Industry Crisis and Contractual Rights
In a statement to the Daily Mail, a spokesperson for Kokoda Property Group defended the decision. They cited an extensive review which found construction costs had escalated above original expectations, making the project unfeasible at previous prices.
The developer blamed extraordinary industry conditions, including:
- Severe shortages of key construction materials.
- Limited availability of contractors and labour constraints.
- The insolvency of various builders and subcontractors.
Kokoda stated it had exercised its contractual rights to terminate the contracts and secure additional revenue needed to meet finance conditions for construction, now proposed to be carried out by Maxcon Construction.
Mr Sinclair revealed he was unaware of the implications of the 'sunrise clause', which was worded as 'late estate' in the contract, and was angry his conveyancing lawyers did not highlight it. The couple, who had received reassuring updates throughout 2024, feel the situation is profoundly unfair, especially as they claim other apartments in the same building saw smaller price increases.
