A vendor fails to disclose that their property is affected by a significant planning restriction. What is the most likely legal consequence?
Correct Answer
B) The purchaser may be able to rescind the contract or claim compensation
Failure to disclose material facts such as planning restrictions constitutes a breach of disclosure obligations and may give rise to misrepresentation. The purchaser typically has the right to rescind the contract and recover their deposit, or alternatively, complete the purchase and claim damages for any loss suffered.
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A purchaser in Victoria signs a contract on Saturday afternoon for a residential property. When does their cooling-off period commence?
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A property developer selling land in NSW fails to disclose a significant planning restriction affecting it. The purchaser discovers this after settlement. If the restriction materially affects the land's value and use, what is the most likely outcome?