At the centre of collapsed residential buildings are the purchasers who bought their units off-plan with the anticipation that the developer will complete the construction as agreed, the financiers who have advanced facilities to the developer, and insurance companies who have issued the WIBA policies.

With investments literally sunk, the purchasers are left to wonder what recourse they have. The remedies available to such purchasers are largely contractual, meaning the terms outlined in the Agreement for Sale are crucial.

We look at two (2) important clauses that purchasers can rely on when pursuing a legal claim.

1. Completion Date: In most contracts, this is usually fluid, as developers often do not like to tie themselves to a set completion timeline. This notwithstanding, a purchaser can claim anticipatory breach of the Agreement, seeing the complications presented by the collapsed building.

2. Remedies: With reliance on the anticipatory breach, a purchaser may bring a claim against the developer as envisaged in the contract document. However, the claims of other interested parties, such as the financing bank, which is a secured creditor, will rank higher than this unsecured purchaser.  

Given these complexities, it’s crucial for anyone investing in off-plan properties to seek legal advice to make informed decisions.

If you need further information, please contact us at info@cfllegal.com