Showing posts with label contract. Show all posts
Showing posts with label contract. Show all posts

Tuesday, August 19, 2014

Buyer Misses Out Because Notice sent to real estate agent

A recent Supreme Court of Queensland case shows that it is important to be precise when following contractual provisions.  A buyer and seller sign an REIQ contract of sale.  The contract includes a provision that the buyer must give notice to the seller that the building and pest inspection has been satisfied by 5pm on a particular day, and if such notice is not given by this time, then the seller can terminate.  The contract says that notice can be given by fax to the seller or the seller's solicitor.

The buyer's solicitor gave notice at 4.57pm to the seller's real estate agent, not the seller's solicitor.  So the seller terminated the contract at 5.07pm.  This termination by the seller was considered to be valid.

See Simpson v. Jackson [2014] QSC 191

Monday, February 13, 2012

End of the Road for Mirvac at Tennyson

Mirvac and an off-the-plan purchaser, Mrs Dunworth, have had protracted legal battles regarding Mrs Dunworth's contract to purchase an apartment at Tennyson Reach that flooded.  Mrs Dunworth got out of the contract in this decision.  Mirvac appealed that decision to the High Court, but on Friday last week, the High Court refused leave to hear the case, so Mrs Dunworth wins and does not have to settle.  A rare win for an off-the-plan purchaser trying to get out of a contract.

Wednesday, November 2, 2011

No Views at Bella Vue - Contract Terminated

A recent Queensland Supreme Court decision worth noting:  Nifsan Developments v. Buskey.  Mr Buskey purchased a penthouse apartment off-the-plan from Nifsan in the Bella Vue complex at Emerald Lakes.  The contract price was over $1.5M.  Before signing the contract, the sales agent told them about the uninterrupted views that the apartment would have.  However, the developer was planning a building in front of the apartment that would block the views.  The court rescinded the contract, and Mr Buskey got his deposit back.

Interestingly, the developer had a policy of not telling its sales agents about relevant information.  The sales agent may be honest, but being kept in the dark by the developer.

Also, the evidence before the court was that the apartment was not worth $1.5M when the contract was signed, and was now worth about $800,000.

Extreme care must be taken when buying off the plan.  You may be paying way too much. What the sales agents tell you may not be true.

See full text of decision.

Wednesday, November 24, 2010

Trying to Get Out of an Off-the-plan Contract

Here is a decision regarding an investor trying to get out of two off-the-plan contracts for apartments in The Oracle at Broadbeach. The judge decided that the case will have to go to trial. As purchasers at Tennyson Reach have found out, it is not easy to get out of off-the-plan contracts.