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The recent case of Stake Property Limited v Coate & Ors demonstrates the importance of legal advice before signing an agreement for sale and purchase.
This case displays the normal hallmarks of subsequent disaster - a slightly unusual property that had resulted from a subdivision where there were two separate dwellings. However, one dwelling comprised two flats while the other was a free standing house. The vendor intended selling the two flats while the purchaser, who did not inspect the properties prior to the agreement becoming unconditional thought that the unit containing the two flats and the free standing house comprised the two units being sold. Incorrect title references compounded the confusion.
Add an unseemly and unnecessary amount of urgency to the mix and you have all the ingredients of a train wreck.
Round one of the legal proceedings saw the purchaser try to have the Court order the sale of all three properties - or two - depending on your perspective. The Court declined to do so and so the outcome of the matter will now depend on either settlement between the parties or a substantive hearing.
In the meantime, all parties are in limbo and the legal costs are mounting. The cost to avoid the situation? Perhaps half an hour of the vendor's lawyer's time.
If you would like some pre-purchase or pre-sale advice, please call a member of the Ayres Legal team on 309 3202 (or e-mail vicki@ayreslegal.co.nz if you need some after hours advice. At Ayres Legal we know that not all deals are done between 9 and 5).