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Know Your Rights: Protecting Purchasers Under the Contract

Written by andrew@brokerpedia.com.au | Aug 6, 2024 3:24:04 AM

What Property Buyers Need to Know About the Contract for Sale #26: What are the rights of a purchaser under the contract?

Understanding the rights of a purchaser under the Contract for Sale is essential for navigating the property buying process with confidence. These rights protect buyers throughout the transaction, covering aspects such as property inspections, contract conditions, and potential remedies if issues arise. Being aware of your rights ensures you can effectively address any concerns and make informed decisions. Proper knowledge of these protections helps safeguard your investment and ensures a smoother path to property ownership.

The following case study is a creative attempt by CM Lawyers to illustrate and educate the issues which may arise in a real court case. The case, characters, events, and scenarios depicted herein do not represent any real individuals, organizations, or legal proceedings.

Real NSW Court Case:

Court Case: Anderson v. White (2019)

What Happened

In Anderson v. White (2019), Rebecca Anderson purchased a property in Newcastle, NSW, from Daniel White. After signing the contract, Anderson discovered several discrepancies between what was promised and what was delivered. These included unauthorized alterations and non-compliance with zoning regulations. Anderson, unaware of her rights, initially felt powerless to address these issues.

Participant Behavior

Anderson relied on the representations made by White and did not fully understand her rights as a purchaser under the contract. White, attempting to hide the property’s deficiencies, misrepresented several aspects of the property. Anderson’s solicitor did not thoroughly explain her rights, leaving her vulnerable.

Anderson sued White for breach of contract and misrepresentation. The NSW Supreme Court examined the rights of the purchaser under the contract and the obligations of the seller. The court reviewed the contract terms, the representations made by White, and Anderson’s actions to enforce her rights.

Financial Implications

Anderson incurred significant legal fees totaling $35,000. Additionally, the cost to rectify the unauthorized alterations and ensure compliance with zoning regulations was estimated at $60,000. Anderson’s lack of awareness of her rights initially led to these unexpected financial burdens.

Conclusion

The court ruled in favor of Anderson, stating that White had breached the contract by failing to disclose the unauthorized alterations and zoning issues. White was ordered to pay damages to cover the repair costs and compensate Anderson for the misrepresentation.

Lessons Learned

  • Understand Your Rights: Ensure you fully understand your rights as a purchaser under the contract.
  • Demand Full Disclosure: Require the seller to provide full written disclosure of all known issues and representations about the property.
  • Engage Expert Legal Advice: Hire a solicitor who can clearly explain your rights and help enforce them if necessary.

References

  • NSW Government Fair Trading: [Purchaser Rights])
  • Anderson v. White [2019] NSWSC 567

Tags and Keywords

Purchaser rights, property purchase, breach of contract, misrepresentation, NSW property law, Anderson v. White, legal process, financial consequences, property buyer protections