Conveyancing and Body Corporate contracts – basis for termination

Pazcuff Pty Ltd v Farmilo & Ors [2009] QSC 230

This recent Supreme Court decision (August of 2009) determined that the purchaser was able to terminate the contracts of sale as a result of the sellers’ failure to provide disclosure statements signed by the sellers (or person specifically authorised by the sellers to do so), before the contracts were entered into, as required under s 206 of the Body Corporate and Community Management Act 1997 (the Act).

s 206 of the Act provides:

  • “(1) The seller of a lot included in a community titles scheme … must give a person (the buyer) who proposes to buy a lot, before the buyer enters into a contract to buy the lot, a disclosure statement.
  • (2) …
  • (3) The disclosure statement must be signed by the seller or a person authorised by the seller …”

The disclosure statements were simply not signed and provided to the purchaser with the executed contracts under cover of the seller’s solicitors letterhead.  The Court said that was not good enough under s206 of the Act.

Conveyancing is not simple. Much attention to detail is required and mistakes are very costly. Engaging our expert, experienced and careful Property Lawyers and Conveyancing Solicitors makes good sense.

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