Daniel and Pascale Sinclair purchased the three-bedroom luxury apartment in 2024. (Source: 9News)

A retired couple has had the contract on their forever home ripped up just days before Christmas due to a little-known clause. They’ve now been asked to fork out an extra $1.2 million for the off-the-plan property.

Daniel and Pascale Sinclair purchased the three-bedroom apartment after they retired and sold their business in 2024. The Brisbane couple paid a $257,000 deposit for the luxury Ruby Ruby development in Milton.

Construction was due to start in January 2025, but Daniel said delays soon began.

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“Nothing happened, no demolition, no builder on site, no announcement … nothing,” he told 9News.

Then, three days before Christmas, the couple received an email from the developer Kokoda Property Group. The contract was torn up due to a “sunrise clause” that allowed the developer to terminate the agreement.

A “sunrise clause” requires the developer to start building work by a specified date or within a specified period.

It is different to a “sunset clause” which ensures the project will be completed by a specific date and if not, gives both parties the right to terminate the contract.

The email announced a new builder, Melbourne-based Maxcon Construction, would take on the project, and advised that the building contract and construction were subject to finance approval due to a “significant escalation in the build cost” and the “shortage of suitable builders”.

“Regretfully we have no other viable option but to terminate all existing contracts and resell apartments at higher prices,” the email said.

The next day, the couple was offered the chance to repurchase the apartment at just over $3.8 million, which is about $1.2 million more than their initial agreement.

Artist rendering of the Ruby Ruby development. (Source: Kokoda Property)

“We bought for $2.6 million, they’re gonna put it back onto the market at $4.14 million and they’re gonna give us an 8 per cent discount on that,” Daniel said.

In a statement to 9News, Kokoda Property said it became clear that additional revenue was needed for the development of Ruby Ruby to be feasible.

“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,” it said.

Early works have now commenced and construction will continue once financing conditions are met.

The couple has been given until January 16 to either pay the higher price, or get a refund of their deposit and interest. But they are worried they have now been priced out of the market.

“I mean the building itself is phenomenal, it’s spectacular, but it’s definitely not worth $27,000 a square metre,” Daniel said.

Queensland’s Office of Fair Trading recommends off-the-plan buyers seek “specialist legal advice” before signing a contract.

It also urged people to be aware of the risks associated with buying off-the-plan, including contract clauses that allow it to be cancelled.

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