By Julian & Renee (Australia) – with writing support from Alberto Aldana (Colombia)
The recent case of Balout v Dobro Dosle Pty Ltd shows us a great deal about property transactions. Property transactions are often governed by legal agreements that bind buyers, sellers, and lenders to specific terms. This case addresses several key issues in property deals with reference to the rights and obligations of the parties involved. It is important for conveyancers to understand how cases like this affect the handling of contracts to ensure smoother transactions for their clients.
In Balout v Dobro Dosle, Touma lent funds to Balout in relation to the sale of Property 127. The agreements also set out terms for the sale of Property 127 and how the loan would be financed. There were specific provisions stating that Touma was entitled to be paid a large amount of money if Property 127 sold for over $16 million. More specifically, this amount was $22 million, depending on which version of the agreement applied. The case then moved through arguments over missed payments, missed deadlines, and failure to disclose key contract information — a situation that teaches crucial lessons for property practitioners.
In this instance, the consequences were considerable when it was established by the Court of Appeal that Touma lost his entitlement to payment under the agreement as a result of his failure to make the required payments. The key lesson was the importance of performing contractual obligations in a timely manner. To avoid a legal dispute and the loss of entitlements (for example, a deposit), the buyer, seller, and their respective solicitors must ensure that all relevant terms are complied with, such as the agreed payment schedule. Likewise, it is important to disclose all relevant documents in full, as non-disclosure could give rise to claims of misleading or deceptive conduct.
Our team of professionals at Flash Conveyancing (led by Julian and Renee), as property transaction experts, understands how even the slightest oversight can lead to major problems down the track. With years of experience working with councils in Blacktown, Hornsby, Parramatta and more, we carefully manage our clients’ property dealings. If you are involved in property transactions in Kellyville, Castle Hill or The Ponds, we are here to help and provide tailored advice and professional support to ensure your settlement is completed smoothly.
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