Stephen Wayne Velik v Noreen Steingold [2012] NSWSC 860

Stephen Wayne Velik v Noreen Steingold [2012] NSWSC 860

Although the vendor's Notice to Complete was invalid because it did not give at least 14 clear days, the purchasers had waived objections to the Registration Notice and agreed 26 February 2010 as the completion date. The purchasers then repudiated the contract by insisting on clause 7 withholding of disputed interest amounts even though special condition 37.1 prohibited those claims in connection with the vendor's contractual claim for special condition 55 interest, and by refusing to pay that essential interest in accordance with the contract. The vendor was entitled to accept that repudiation and validly terminated the contract on 15 March 2010. There was no sufficient basis to exercise...

Jurisdiction
Australia
Judgment Date
31 July 2012
Procedural Posture
Equity Division Proceedings Concerning Termination of a Contract for Sale of Land and Entitlement to a Deposit / Principal Judgment After Hearing
Outcome
Vendor validly terminated the contract; no order made for return of the deposit; parties invited to make submissions on costs.
Legal Topics
['vendor and Purchaser' 'contract for Sale of Land' 'notice to Complete' 'registration Notice for Subdivision' 'repudiation' 'forfeiture and Return of Deposit' 'conveyancing Act 1919 (nsw), S 55(2 A)']
['property Law' 'contract Law' 'equity'] ['vendor and Purchaser' 'contract for Sale of Land' 'notice to Complete' 'registration Notice for Subdivision' 'repudiation' 'forfeiture and Return of Deposit' 'conveyancing Act 1919 (nsw), S 55(2 A)']

Case Brief

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Procedural Posture

Equity Division Proceedings Concerning Termination of a Contract for Sale of Land and Entitlement to a Deposit / Principal Judgment After Hearing

Legal Issues

  1. 1 ['Whether the vendor served a valid Registration Notice under the contract sufficient to fix the completion date.' "Whether the vendor's Notice to Complete gave the purchasers the contractually required or otherwise reasonable time for completion." "Whether the purchasers' settlement claims and proposed withholding of disputed interest amounts were permitted under the contract." 'Whether the vendor or the purchasers were ready, willing and able to complete on 12 March 2010 and 15 March 2010.' 'Whether the vendor validly terminated the contract on 15 March 2010.' 'Whether the purchasers should receive repayment of the deposit under Conveyancing Act 1919 (NSW), s 55(2A).']

Ratio Decidendi

Although the vendor's Notice to Complete was invalid because it did not give at least 14 clear days, the purchasers had waived objections to the Registration Notice and agreed 26 February 2010 as the completion date. The purchasers then repudiated the contract by insisting on clause 7 withholding of disputed interest amounts even though special condition 37.1 prohibited those claims in connection with the vendor's contractual claim for special condition 55 interest, and by refusing to pay that essential interest in accordance with the contract. The vendor was entitled to accept that repudiation and validly terminated the contract on 15 March 2010. There was no sufficient basis to exercise...

Court Disposition

Vendor validly terminated the contract; no order made for return of the deposit; parties invited to make submissions on costs.

Orders

  • ['The parties are to file submissions about all issues of costs by 10 August 2012.' 'The proceedings are to be listed for short argument on costs at 9.30am on a day the following week, by arrangement with the Associate.' 'The parties are to bring in short minutes of order to give effect to the reasons.']