Don’t Lose Your Deposit!
Why You Should Always Get Professional Assistance for Large Financial Transactions
A recent case from the Supreme Court just came to light where the buyers of a commercial property lost their $400k+ deposit due to a key contract oversight by both parties.
In July 2022, an issue arose between the buyer’s and seller’s contract. The day before the settlement of a $9.25m commercial property in Maroochydore, the Buyer discovered the Seller had not completed an important document required by a special provision in the contract. This provision required the new owners to complete a Deed of Covenant with the Council before or on the day of settlement. This deed was crucial as it was the only way for the owners to access the new property, over council land.
However, this issue was only raised the night before settlement by the Buyer’s Solicitor. The Seller’s Solicitor replied that the Buyer needed to sign the deed and get it to council on the same day. However, as the Buyer was unable to get two signatures on the same day, the deed could not be completed.
The Solicitors engaged in debate back and forth regarding who was at fault for not obtaining this deed. The Buyer’s terminated the contract, however the Seller’s deemed it was not valid to terminate the contract, due their own oversight. The Seller’s Solicitor then tried to forfeit the Buyer’s deposit on the property.
This issue went to the Supreme Court, who established both parties were at fault for overlooking this key provision. It was also established the buyers did have a right to terminate the contract, however, their deposit was forfeited. The buyer lost out on over $400,000 due to the unprofessional work of both solicitors.
This case highlights the importance of receiving professional advice when handling large transactions.
Here at Greenhalgh Pickard, our team prioritise our clients. Focusing our time and energy directly to our client needs, with expert and timely advice. We have a fully integrated company with professionals in every area of legal and accounting services, ready and equipped to provide you with assistance in all matters large and small.
Contact our conveyancing team today to help you safely secure your next property.
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Greenhalgh Pickard’s Conveyancing Team