Key Facts

• The original owners sold their Avondale property in November 2021 at the peak of the market for $1.925m.

• The buyer, intending to on-sell (“flip”), had a year to settle, but prices fell sharply, and he later alleged breach of a contractual access clause to try to cancel the contract.

• The High Court found no reasonable basis for cancellation — access was not unreasonably denied — and the contract remained enforceable.

• When the buyers finally resold the property in 2023 for $1.13m, the original owners suffered a loss of over $750,000 (net of deposit) and were awarded damages and interest.

Practical takeaways for property transactions:

✔️ Contract compliance matters: Attempting to rely on minor disputes (e.g. access for viewings) to repudiate a contract may not succeed if there’s no material breach.

✔️ Market volatility risk: Speculative buy-to-sell strategies in downturns can create significant contractual liabilities if the buyer tries to pull out.

✔️ Damages and interest: Courts can award significant damages (including contractual interest) when contracts are wrongly repudiated — potentially turning a failed flip into a near-$1m legal bill.

This case underscores how a cooling or falling market increases legal risk for property investors and resellers, especially where contracts allow long settlement periods and uncertainty about future buyer interest.