Failed property deal costs $5800

GOT a legal query? Here’s the place to get an answer from the experts. Send in your questions here.

GOT a legal query? Here’s the place to get an answer from the experts.

Below, Brydens addresses a Public Defender reader’s question about property purchases.

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Ian asks: I found a property for my super fund and agreed to terms. The vendor asked for my building report then backed out. He said he was facing a fine for not having builders’ warranty insurance. I still wanted to go ahead. But he wouldn’t and he won’t refund our costs of $5800?

Answer: Unfortunately there is no binding contract in place for the purchase of a residential property until there has been an exchange of contracts and, generally, a payment of a deposit. In circumstances where there has been no exchange of contracts you
will not be entitled to recover these costs.

There may be rights to recover under other equitable principles whereby the proposed vendor has become unjustly enriched by obtaining the building report which you had paid for.

THIS legal information is general in nature and should not be regarded as specific legal advice by Brydens Lawyers or be relied upon. Persons requiring particular legal advice should consult a solicitor.