In South Australia, a purchaser discovers after exchange of contracts that the vendor failed to disclose a registered easement affecting the property. The easement was recorded on the certificate of title but not mentioned in the vendor disclosure. What is the purchaser's strongest legal position?
Correct Answer
C) An application to the court to avoid the contract because Form 1 was defective
Form 1 must set out particulars of mortgages, charges and prescribed encumbrances, and an encumbrance includes an easement. Under s 15 of the Land and Business (Sale and Conveyancing) Act 1994 (SA), where the statement is defective the purchaser can apply to court, which may avoid the contract, award damages against the vendor (or an agent at fault) or make other orders if the purchaser was prejudiced.
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