Construction delays in new launch developments are not uncommon. For buyers counting on a specific TOP date, understanding what happens in a delay — and what your rights are — is important.
Liquidated Damages
If the developer fails to deliver vacant possession by the agreed date, you are entitled to Liquidated Damages — typically calculated as 8% per annum of the purchase price, pro-rated for each day of delay. On a $2 million property, 8% per annum is approximately $438 per day, or $13,000 per month of delay. These are paid by the developer directly to you.
The Long Stop Date
The Sales and Purchase Agreement specifies a Long Stop Date — the absolute latest date by which vacant possession must be delivered, usually 12 months after the original delivery date.
What To Do If Your Development Is Running Late
Monitor construction progress through site visits and developer updates. Maintain flexibility in your rental arrangements — avoid committing to a rental lease that assumes a specific move-in date without buffer. If the delay extends significantly, the SPA provides a framework for your rights which your conveyancing lawyer can advise on.