Hillview Estate Maudsland buyers distraught after Metacap Developments terminates contracts

Prospective first home-owners on the Gold Coast have been left in the lurch, and potentially hundreds of thousands of dollars worse off after a developer used a technicality to cancel contracts.

Prospective first home-owners have been left without homes and are potentially hundreds of thousands of dollars worse off after a developer used a technicality to cancel contracts.

The buyers signed contracts and paid 10 per cent deposits in mid-2020 to purchase land at Pitta Street, Hillview Estate on the Gaven Arterial Rd in Maudsland.

The prices ranged from $225,000 to $305,000.

They have all since engaged builders to construct home on the sites, originally expected to be ready in March this year.

Some even had soil tests conducted, purchased furniture and engaged pool builders.

However, a number of prospective buyers have had their contracts terminated by developer Metacap Developments, based in Upper Mount Gravatt in Brisbane, after it invoked a sunset clause.

The clause can legally be invoked by either the buyer and vendor if settlement has not been achieved 18 months after contracts are signed.

The Hillview Estate development in Maudsland. Picture: Richard Gosling.

The Bulletin has also spoken to a number of other buyers whose sunset clauses fall soon and they fear the same fate, amid claims contact from the developer and its representatives has dried up.

One of the buyers whose contract was cancelled, Craig Jensen, said the situation had caused “extreme distress” to his family and others in the same situation.

“Myself, my wife and two children moved up to the Gold Coast for a lovely lifestyle and to build a family home that we could live in for many years to come,” he said.

“We moved up here two-and-a-half years ago from Sydney to try and have that dream.

“We bought this block of land and we started to develop what we wanted to build.

“It’s close to our children’s school.”

Mr Jensen said that because of the dramatic surge in house and land prices on the Gold Coast since he signed the contract in May 2020, he was no longer in a position to buy elsewhere.

Similar plots at the next-door Niche Glade estate are on sale for prices ranging between $520,000 and $595,000.

“What I used to be able to buy for that sort of money, I’m now completely priced out of the market,” he said.

“Because of this situation, I’m really challenged now. I’m in a hard place.”

Another buyer, Rachael Kelly, said she and husband Josh had received notice of the termination of their contract on Monday, December 6, one hour before boarding a flight for their honeymoon in Hamilton Island.

“We were very, very surprised when we received that email,” Ms Kelly said.

“It was actually the morning that we were leaving for our honeymoon.

“... We had been driving to that block every two weeks to check progress. We were so excited. And it was just disappointment after disappointment.

“... To just get a random email (informing of termination), was just disgusting.”

Ms Kelly said the couple, who had agreed to pay $295,000 for their site, were now looking at paying far more to get their foot on the property ladder.

“We were looking at a $600-650,000 loan and now if we look to build again we’re looking at a $950,000 loan,” Ms Kelly said.

“But if we don’t build we lose our money (a deposit) with our builder.

“It’s definitely thrown us into a very unfavourable market.

“... It’s not a pretty way to try and find a new home.”

On the basis of advice that they had limited legal options to challenge the termination of their contract, Mr and Mrs Kelly accepted the return of their deposit – a decision Ms Kelly said they now regret.

Mr Jensen and others have refused to accept the return of their deposits, choosing instead to contest the termination of their contracts.

The Bulletin also spoke to prospective buyers whose contracts have not yet reached their sunset clause, but will do so in coming days and weeks.

They said they were fearful of suffering the same fate.

One told the Bulletin they had furniture for their new home in storage, had soil and survey testing done and had a builder “set and ready to go”, but were no longer receiving replies to their queries to the developer or its agents.

“We’re so worried,” they said. “There’s been no response from the other side.”

In letters to buyers whose sunset clause has been invoked, informing them of the decision, the developer listed a number of reasons for delays at the project.

“The Sunset Date under the Contract ... has passed,” the letters stated.

“By this letter, the Seller notifies the Buyer of its exercise of the right under (a) Special Condition of the Contract to terminate the Contract.”

New home sites at Hillview Estate in Maudsland. Picture by Richard Gosling.

The letters then proceed to set out “reasons” for the termination, listing a number of “Prescribed Events” including:

* A five month delay to construction due to adverse weather conditions, “rocky ground condition” and the “difficulty of the installation of deep footings in hard ground.”

* Delays with Council in securing appointments “for the necessary signing off and certifications”.

* Delays related to “restrictions and lockdown directions” in 2020 and 2021.

Division 5 Councillor Peter Young said he was “aghast” by what had happened, but was “confident” delays were not of council’s doing.

Location of the Hillview Estate in Maudsland.

In response to Cr Young’s queries, officers advised that elements of the estate had not been successfully completed by the developer, and that no ‘plan sealing’ (subdivision plan approval) application had been received.

“Both the Contributed Assets (Civil) and Contributed Assets (Landscaping) teams have advised that elements of the development, including a bio-retention basin and rehabilitation of natural areas have not been successfully completed to reach the on-maintenance and on-establishment milestones,” the officer wrote.

“I have also been advised by Plan Sealing that we do not currently have any applications before us for plan sealing. As such, we are not in a position to push forward with sealing plans so that the lots can be registered.”

Cr Young said that council had in fact been “continually haranguing the developers to complete their earthworks” because of “adverse impacts” being experienced by nearby residents.

Member for Theodore Mark Boothman. Picture: David Clark.

Theodore MP Mark Boothman, who represents Maudsland, said Queensland law does not prohibit developers from enacting sunset clauses for financial gain.

“This allows developers to renege on contracts that were signed before steep increases in property prices,” he said.

Following a number of similar cases, legislation was enacted in NSW in 2015 that outlaws the practice.

Mr Boothman last week wrote to Attorney-General Shannon Fentiman asking that similar legislation be brought forward in Queensland.

“Queensland buyers are seeking similar protections that our southern home buyers enjoy,” he wrote.

“The creation of these legal protections for all involved will serve as a necessary balance in the interests of the buyer and developer.”

The Bulletin sent a series of questions to Metacap Developments via its legal representatives, asking why delays outside buyers’ control had led to the invocation of sunset clauses.

No response was received by deadline.

The Bulletin also attempted to contact a Metacap sales agent who had until recently regularly sent updates to buyers on progress at the site.

They did not respond to the Bulletin’s messages.

They are also listed as an agent at Julie Harris Realty, which like Metacap has an address at Mount Gravatt in Brisbane.

At time of publication Julie Harris Realty had 16 sites listed for sale at Hillview Estate, 13 of which were described as “under offer”.

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