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Sean
Sean, Experienced lawyer
Category: Australia Law
Satisfied Customers: 855
Experience:  Law degree with 1st class honours from Australian National University.
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I have signed a contract to purchase a block of land in WA.

Customer Question

I have signed a contract to purchase a block of land in WA. Finance has been approved and the land developer advised, tittles are due to issue then settlement. But last week I received a letter from the developer stating that WA Dept of Housing have purchased all remaining lots of land and the actual estate. Settlement I am advised will now be through the Dept of housing. I am advised that lots will be made available to the public to purchase as a shared equity with the dept of housing and the remaining will be public housing rentals. So, given the above I don't want to proceed. I have had a look at the contract and nothing stands out. But in short what should I be looking for in that my feeling is to request to be released from the contract to buy and receive my 1k deposit back. Any thoughts??

Submitted: 1 year ago.
Category: Australia Law
Expert:  Sean replied 1 year ago.

Hello and thank you for your question. Is there anything in the contract that deals with the land developer assigning its rights in the contract to a 3rd party (ie the Dept of Housing). There would need to be a clause like this that allows them to deal with the contract in this way.

Customer: replied 1 year ago.

There is nothing in the contract which indicates assigning its rights to a 3rd party.


 


In the letter I received under a heading of " Settlement of your lot" it states...


 


" Settlement will be required to occur as per your contract of sale. The only difference is that you will be settling with the Housing Authority"


 


Expert:  Sean replied 1 year ago.

OK, but who does the contract of sale list as the seller? And is there an entire agreement clause in the contract of sale, that says that this is the entire agreement between the parties? The reason I ask this is because if there is such a clause it would mean that what is written in the letter does not apply.

Customer: replied 1 year ago.

the seller is listed as Australand Industrial No. 140 PTY LTD no such wording/mention as to this being and entire agreement between the parties


 

Expert:  Sean replied 1 year ago.

Ok then what is said in the letter will effect the contract. Are you able to upload the contract so I can take a look at it for you?

Here is how you attach a document:

First type some text, anything - just a few words. Then highlight the words with your mouse.

Once you have done that, click the chain icon between the happy smiley face and the tree.

A pop up window will open. The first line should say Link URL. At the end of it there is a little square icon with a blue line at the top.

Click it and an attachment upload box will pop up.
Customer: replied 1 year ago.

Not really the contract is a bound booklet of some 60 plus pages...


 


From my reading of it once they are advised formal finance approval has been obtained contract is binding, but my question is given the above and that settlement has not yet occured can I simply say, sorry changed my mind dont want the land give back my 1k deposit??

Expert:  Sean replied 1 year ago.

Given that the contract does not provide for assignment to the housing authority, you could say that your contract is with the original seller and not the Housing Authority and given that the seller will no longer be going ahead with the sale, you want it to pay your $1K deposit back.

Customer: replied 1 year ago.

Ok..seperate to that because I have signed the contract to buy can they make me go ahead with it?

Expert:  Sean replied 1 year ago.

Given that there is no assignment clause in the contract, the company you contracted with (Australand Industrial No. 140 PTY LTD) is the only party who can make you go ahead with it. However, given that they have now sold the land to the Dept of Housing, they have nothing to sell so can't force you to go ahead with the contract if they aren't able to perform their side of the bargain, which would be giving you title in the property.

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Sean
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Law degree with 1st class honours from Australian National University.