Time Is Of the Essence in Conveyancing Contracts

The recent Queensland Supreme Court Case of Simpson and Others –v- Jackson is a timely reminder of the importance of ensuring that when you have a contract to purchase property you take very careful note of the various time limits set out within the Conveyancing Contracts.

In this case, there was a Building and Pest Inspection condition that expired on 09 December 2013 at 5:00 pm. At 4:57 pm on 09 December 2013, the Solicitor acting for the buyers sent a fax to the Real Estate Agent indicating that the buyers were satisfied with the Building and Pest Inspection. They did not, however, send that notice to the Seller’s Solicitors. At 6 minutes past 5:00 pm on 09 December 2013, the Seller’s Solicitors sent a fax to the Buyer’s Solicitors terminating the Contract due to the Buyer’s failure to give notice that they were satisfied with the Building and Pest Inspection. The Supreme Court of Queensland confirmed that this was a valid termination of the Contract. The Buyer’s claim for specific performance of the Contract was denied, and the Conveyancing Contracts was at an end.

This demonstrates very clearly the importance of ensuring that time limits are promptly and properly observed.

Aylward Game Solicitors

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