A recent decision in the Western Australian Court of Appeal
relating to Section 13 of the Sale of Land Act 1970 (WA)
(Section 13) has major implications for local
property developers, as it is now apparent that contracts that
contravene Section 13 cannot be enforced by sellers.
In this Alert, Senior Associate Anthony Pitt and Associate
Darren Zusman discuss the Court of Appeal's decision, and
outline its consequences for land developers.
Key points
- A contract that contravenes Section 13 is unenforceable.
- Developers are now prevented from presenting sales contracts to
banks prior to becoming the registered proprietor of the relevant
land.
- Contracts containing provisions which state that the contract
is conditional upon the seller becoming the registered proprietor
of the land will be rendered ineffective, should Section 13
apply.
