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ARTICLE · 10 SEPTEMBER 2019

Going once, going twice ... and sold to the man from Adelaide (or was it?)

Interesting article about recent case where developers were held liable for misrepresentations made to achieve a sale.

AustraliaReal Estate and Construction

The Federal Court of Australia recently confirmed that the word "Sold" can carry a number of different meanings and the owner of the land carries risk in relation to the use of the word "Sold" by its agents.

Additionally, the primary judge in Eckford v Six Mile Creek Pty Ltd (No 2) [2019] FCA 1307 found that where the developer knew, or had a reasonable suspicion that those properties marketed as "Sold" were not bona fide, were "bodgy" or were "dodgy", the developer may be personally liable for committing the tort of deceit and/or fraudulent concealment.

Background of case

In about September 2007, Mr and Mrs Eckford, whilst on holiday from Dubbo, took a scenic drive from the Gold Coast to the Sunshine Coast.

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