Multimillion Dollar Save

Melina’s client sold a multimillion-dollar property at auction. The Purchasers inadvertently noted the incorrect purchasing entity on the Contract and as a result were unable to secure the finance to complete. Melina was able to prepare a new Contract with the correct entity as well as a Deed of Mutual Rescission which was exchanged simultaneously with the new Contract meaning the Purchaser was still locked in, only this time the Contract had the correct entity noted as the Purchaser.

The new Contract reflected the same terms as the original Contract with the exception of the purchasing entity and the completion date. Rather than the Purchaser having another 6 weeks to complete after the rescission and re-exchange of Contracts, the new Contract reflected the original completion date being 6 weeks from the auction. This meant that the Vendors didn’t lose the sale and were able to recoup interest from the Purchaser for the delay to the original completion date.