An Australian home buyer has lost nearly A$100,000 after paying his property deposit two days late, a ruling that experts warn could also occur in New Zealand under similar contract terms.
The Queensland Supreme Court found the buyer breached an essential condition of the sale contract by failing to lodge the full deposit on the day the agreement was signed, despite partial payments and text exchanges with the real estate agent suggesting a short delay was acceptable.
The judge determined the agent had no authority to vary the contract, allowing the seller to terminate the deal and retain the deposit plus interest.
Massey University banking expert Claire Matthews told state media a comparable outcome was legally possible in New Zealand, though uncommon, describing the situation as “morally wrong even if legally correct” and urging buyers to seek legal advice and arrange payment limits with their bank in advance to avoid similar losses.
Image credit: Tierra Mallorca
