Overview
Talon Legal acted for the seller of a residential property accused of misrepresentation by the buyer. The buyer alleged that the property was falsely advertised as containing “expansive double glazing in the lower area of the house” and demanded $70,000 in compensation for the purported missing feature. We were engaged to review the claims and respond decisively to defend an otherwise innocent seller against the allegations many months after settlement.
The Challenge
After settlement and months of occupying the property, the buyer raised concerns about the absence of double-glazed windows in the lower living areas, asserting that this feature had been a significant selling point.
Their property buyer’s claim relied on:
- Statements in a promotional brochure prepared by the seller’s real estate agent;
- A quotation obtained for the cost of installing double glazing, which they argued represented their damages; and
- Allegations of misleading or deceptive conduct under the Australian Consumer Law.
The buyer demanded $70,000 in compensation and threatened legal proceedings if their demands were not met.
Our Approach
Our strategy was to firmly reject the allegations while meticulously addressing each aspect of the buyer’s claims in order to dismantle their claim, and any prospect of litigation. This involved:
Analysing the Contract
- We highlighted the clear terms of the purchase contract, including clauses that placed the onus on the buyer to verify all representations prior to purchase.
- The buyer had obtained an independent building inspection during the cooling-off period and failed to raise the issue at that time.
- Any claim of error or misrepresentation was subject to a 14-day notification period post-settlement, which had long since lapsed.
Challenging the Promotional Brochure
- We established that the brochure’s contents, including the mention of double glazing, constituted mere “puffery” and did not form part of the contract.
- The brochure included a clear disclaimer that required buyers to rely on their own investigations and explicitly disclaimed any warranties or guarantees regarding the information provided.
Refuting the Basis of Damages
- The buyer’s quoted cost of $70,000 covered far more than the purported missing glazing and included unrelated improvements.
- We argued that any damages, if proven, would be limited to the actual loss of amenity, which was negligible given the property’s overall value and the buyer’s own responsibility to verify the claim.
Highlighting Commercial Realities
- We emphasised that the buyer’s claim lacked merit and would result in disproportionate legal costs.
- A pyrrhic victory, if achieved, would yield nominal damages at best while incurring significant expenses.
Citing Legal Principles
- Our letter relied on established principles of contract law and consumer law, reinforcing that the burden of proof lay with the buyer to demonstrate reliance on a misrepresentation, which they failed to do.
Outcome
Our detailed response successfully dismantled the buyer’s claims, leaving no legal or factual basis for further pursuit.
The buyer subsequently abandoned their claim and ceased communication after receiving the letter.
No further demands or legal proceedings were initiated. The seller was able to move forward without incurring additional expenses or reputational harm.
Key Takeaways
- Contracts Are Crucial – Clear terms in purchase agreements provide strong protection against post-sale disputes.
- Disclaimers Work – Including robust disclaimers in promotional materials can preempt and neutralise claims of misrepresentation.
- Swift, Strategic Advocacy – A precise, preemptive legal response can prevent baseless claims from escalating into costly litigation.
- Protecting Our Client – Our proactive approach ensured the seller’s reputation and financial interests were protected.
Legal Advice For Property Disputes in Adelaide
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