Couple’s contract for luxury apartment is torn up by the developer just days before Christmas over little-known clause: ‘Reeks of unfairness’
A devastated couple could lose their dream home after a little-known ‘sunrise clause’ saw their contract torn up by the developer just days before Christmas.
Kokoda Property Group said it exercised its contractual rights to end existing sales at its Ruby Ruby development in Milton, in inner-city Brisbane, after reviews found construction costs had escalated above original expectations.
The developer has since reoffered some of the 178 luxury apartments for at least $1million more than they were first advertised and purchased for.
Retirees Danny and Pascale Sinclair paid a $257,000 deposit on a three-bedroom apartment they bought for $2.6million in 2024 after selling their business.
But an email on December 23 informed the couple a ‘sunrise clause’ allowed Kokoda Property Group to terminate the agreement.
The couple were offered the chance to repurchase the apartment for $3.815million, an eight per cent discount on the new price of $4.14million.
Mr Sinclair told Daily Mail he and his wife were ‘shocked’ by the news.
‘It was absolutely devastating because we were chasing this dream for the past 16 months and when it went off track, we started to get worried,’ he said.
Brisbane couple Danny and Pascale Sinclair (pictured) have been left stunned after their contract for a off-the-plan apartment in Milton was torn up days before Christmas
Pictured is an artists impression of the luxury apartments in the new build block at Milton
The Ruby Ruby offers two, three, and four-bedroom residences
‘I didn’t know about it (the sunrise clause). In the contract it’s called ‘late estate’, and I didn’t know about it and I was quite angry, once I did find out about it, that my original conveyancing lawyers didn’t point it out to me.’
A sunrise clause is a contract provision that activates obligations at a future date, often extending protection backward or setting a starting point for development.
In real estate, it’s a stipulation requiring the developer to begin construction by a specific date, giving the buyer the right to pull out if work doesn’t start by then.
The Sinclairs were told their contract was terminated following a ‘significant escalation’ in construction costs and delays in securing a builder.
‘Regretfully we have no other viable option but to terminate all existing contracts and resell apartments at higher prices,’ Kokoda said in an email.
‘We are pleased to share that the builder who is proposed to deliver the construction of Ruby Ruby is Maxcon Construction. The continuation of the building contract and construction is subject to Kokoda obtaining finance approval.
‘As a result of (a) the significant escalation in the build cost; and (b) the shortage of suitable builders delaying security a builder, we are only able to secure a suitable funding package for Ruby Ruby after the revision of prices.’
Mr Sinclair said they received updates from the sales manager and Kokoda founder Mark Stevens throughout 2024, saying they were in the process of finding a builder and that everything was going ahead.
The couple are now deciding what to do after seeing the new price for their apartment
The company says Ruby Ruby is a ‘curated experience that immerses you in the elegance, atmosphere, and lifestyle’
‘At no stage did they ever make us believe, or think, that contracts would be cancelled and changed,’ he said.
The couple have until January 16 to decide if they will repurchase the apartment at the new price or be refunded their deposit plus interest.
‘It was only three weeks over Christmas. It’s crazy, and I reckon they chose that timing to cause the most disruption and put the pressure on us,’ Mr Sinclair said.
‘They want us to quickly buy it, or get someone else in to buy it and they haven’t made the pricing attractive to make us want to do it.
‘We were prepared to pay another 25 per cent, maximum, but ours is 47 per cent more. That just reeks of unfairness because other apartments in the same building are only being increased by 20 per cent.
‘We want to see the email about the builder (Icon) pulling out and some proof as to why they pulled out. We want to know when the new contract with the new builder was signed and why people are being charged differently.’
A Kokoda Property Group spokesperson told Daily Mail: ‘Following extensive review with our quantity surveyor, builder and financiers, it became clear that additional revenue must be secured for the development of Ruby Ruby to be feasible and to meet finance conditions for construction.
‘As a result, Kokoda Property Group has exercised its contractual rights to terminate the contracts. Buyers have been offered the opportunity to secure their residence at revised pricing.
‘Since Ruby Ruby was launched, the industry has faced extraordinary conditions including severe shortages of key construction materials, limited availability of contractors, labour constraints, unreasonable pricing practices, and the insolvency of various builders and subcontractors.’
