Off the plan sales (Victoria) rescission risk - What changes to subdivision plans will "materially affect" lots?

SUPREME COURT UPHOLDS PURCHASER RESCINDING CONTRACTS OF SALE OF REAL ESTATE

In Lockwood v PSP Investments Pty Ltd [2013] VSC 10, the Victorian Supreme Court held that the purchaser had validly rescinded off-the-plan contracts of sale on the basis that the vendor's amendments to the plan of subdivision materially affected the lots the subject of the contracts.

THE FACTS

On 24 January 2010 Lockwood, the purchaser, entered into eight off-the-plan contracts of sale of real estate with PSP Investments Pty Ltd, the vendor, in respect of a proposed development in Windsor called Ecosquare. Four contracts related to apartment lots and four contracts related to car park lots to be developed at Ecosquare. None of the contracts were explicitly interdependent, i.e. there was no provision making completion of each contract conditional on the Vendor being able to complete the other contracts. The purchaser paid a deposit of $21,500 on each apartment and a deposit of $4,500 on