How We Saved Our Client $41,000 After Hidden Contract Changes in a Land Purchase

In March 2022, our client entered into a Contract for Sale to purchase a vacant parcel of land. As the transaction progressed, we received an updated plan and Section 88B instrument from the vendor’s solicitors. It became immediately apparent that new restrictions had been added—restrictions that were not included in the original draft plans annexed to the contract.

These changes raised serious concerns. They had a direct and material impact on our client’s intended use of the property, specifically their plan to construct a dual occupancy dwelling. We promptly issued a rescission notice, arguing that the changes materially prejudiced our client’s use and enjoyment of the property.

The vendor initially rejected our rescission, claiming the amendments were not material. However, we stood firm. Relying on Section 66ZN of the Conveyancing Act, we argued that any changes to material particulars—whether existing at the time of signing or arising thereafter—must be disclosed in the approved form. The failure to do so breached the vendor’s disclosure obligations.

We further demonstrated that the newly imposed restrictions would prevent our client from developing the lot as originally intended. This significantly undermined the value of the purchase and would result in a substantial financial loss, including the loss of potential dual rental income.

Despite initial resistance, we persisted and clearly articulated how the vendor’s actions had not only breached their statutory obligations but also that these changes compromised our client’s expected investment outcome. Ultimately, our arguments prevailed.

Outcome:
Our client successfully rescinded the contract and was refunded their entire deposit of $31,500, along with $9,500 in previously paid stamp duty—a total recovery of $41,000.

This outcome is a testament to our team’s diligence, legal precision, and unwavering commitment to protecting our clients’ rights in property transactions.