Friday, June 15, 2012

Oracle Buyers Loose Appeal

A number of off-the-plan purchasers for The Oracle development at Broadbeach refused to settle.  One reason they gave for their refusal was that Peppers purchased the management rights for the complex.  The purchasers lost their appeals today.  There were two decisions, Gough, and Walsh.  See also Courier Mail.

"... there is little support for the conclusion that, in addition to the role played by the Oracle name in identifying the apartments to be sold and purchased, there was also a promise by the vendor that Tower 1 be known or described as The Oracle at the date of completion. If such a promise existed, it needed to be inferred and the inference, if it could be drawn, was far from obvious.  ...  For the above reasons, I would order that the appeals be dismissed and that the appellants’ pay the respondent’s costs of the appeals, including reserved costs if any, on the indemnity basis."

The main reason the buyers did not settle was because the apartments dropped significantly in value between contract signing and settlement.  That is a risk of buying off-the-plan, and is not a ground to refuse to settle.

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