The sunset clause that could see Crownview buyers lose their money

Alyce Fisher is a senior associate at Wollongong law firm Maguire and McInerney and has represented Shell Cove home owners over building defects.

More and more Crownview buyers want their deposit back but are being stymied by a clause in their contracts.

Those contracts include a clause that allows developer Robert Huang to keep pushing back the sunset date - effectively the expiry date of the contract - indefinitely.

All Mr Huang needs to do is supply a letter from his own architects - Urban Link from the Sydney suburb of Burwood - saying the delays are beyond his control.

"The parties agree that a certificate by the vendor's architect in relation to an extension of the sunset date is final and conclusive and binding upon the parties," the contract clause states.

Ms Fisher said this could allow Mr Huang to keep extending the sunset date, which now sits at July 25, 2024.

"Legally there's nothing wrong with it," Ms Fisher said of the clause.

Those people, when they purchased it you would hope that their lawyers explained it to them, otherwise you can get trapped in situations like this."

Buyers had been given hope by comments from Wollongong MP and Planning Minister Paul Scully that suggested they could get their deposit refunded.

However, this clause appears to overrule that advice.

Ms Fisher said one option for the buyers was simply to walk away from the thousands of dollars they put down as a deposit.

"The buyers are in a bit of a pickle," Ms Fisher said.

"They can get out of it but they're going to lose their 5 per cent deposit or whatever they've put down. Then the developer normally has to on-sell it which will be really hard for them.

"Without seeing a contract I can't be specific, but in my experience with these things you have to lose your money that you've already put down."

She also said selling the apartment back to the developer was an option; but the negative publicity surrounding Crownview makes this unlikely as it would be difficult to resell.

The buyers could also pray for the company to go into liquidation.

Ms Fisher said the Crownview case served as a reminder for those looking to buy off the plan, that they need to be cautious.

"On a broader scale people should be watching that in general when they're purchasing off the plan, because it's not as easy as you chuck down your 5 per cent and you get something in 12 months," Ms Fisher said.