Last week the Queensland Court of Appeal confirmed that a contract was able to be terminated on the grounds that a covering letter sent by the seller’s solicitor did not properly direct the buyer’s attention to the 30C Warning Statement, Contract of Sale and Information Statement.
Following execution of the contract, the seller’s solicitor returned the executed contract to the purchaser’s solicitor, with a covering letter stating, amongst other things, “We now enclose Contract of Sale and Disclosure Statement for your attention …”
The letter did not specifically draw the buyers’ attention to the Warning Statement or Information Sheet, and subsequently, when the buyers sought to terminate their offer of purchase, they did so on grounds that there was no binding contract, due to the failure of complying with s 365(2A)(c)(ii) of the Property Agents and Motor Dealers Act 2000 (‘PAMDA’).
Whilst the solicitor’s for the seller argued in Court that the letter referred to the Warning Statement and Information Sheet as a collective document- ‘The Contract of Sale’, the Court advised that s 365 of PAMDA required that the buyers’ attention be directed to each of the three documents —the Contract, the Warning Statement and the Information Sheet.
This case serves as a timely reminder that contracts must be strictly prepared in accordance with the relevant legislation.
Affinity Conveyancing Lawyers on the Gold Coast hold a wealth of experience in property transactions, and if you require assistance or have a question, please do not hesitate to contact our office on 5563 8970 or admin@affinitylawyers.com.au
