A recent Victorian Supreme Court decision ruling in favour of purchasers of an off-the-plan residential development has caused unrest among developers.
The decision found that a variation in the size of a lot, less than the 5 per cent tolerance rule, materially affected the lot in question—entitling the buyer to rescind an off-the-plan contract.
“I think the 5 per cent tolerance rule is fundamentally misunderstood,” SLF Lawyers property partner Brendan Hoogenbosch says.
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