Aireys Inlet Real Estate Open Home Inspections September 17 – 18
DUD AUCTION BUYER SUCCESSFULLY SUED
An auction â€˜buyerâ€™ whose cheque for the 10 per cent deposit bounced was successfully sued by the home’s owners in the NSW Supreme Court.
The SydneyÂ house, based in Collaroy, was initially sold for $2.3 million to Lily Gubbay, beating two other bidders.
But, asÂ The Daily TelegraphÂ reported, Ms Gubbay left a dud cheque for the compulsory 10 per cent deposit.
The owner, who eventually sold the house for $1.95 million, successfully sued Ms Gubbay in what the report said was believed to be the first case of its kind.
On Friday, Justice BerginÂ ordered the â€˜buyerâ€™, Ms Gubbay, to pay the $350,000 difference plus interest, costs of the first auction and the cost of reselling the house.
The total amount payable was estimated at $447,000 compensation plus legal costs of more than $50,000.
After Ms Gubbay’s $230,000 cheque bounced, her lawyer Damon HallÂ told the sellers his client “had no money,”Â Justice PatriciaÂ Bergin said.
Seller Pamela Clancy, who put the family house on the market along with her cousin David Burnet, said she would never sell a house by auction again.
“It gives you a nasty feeling,” Ms Clancy told the newspaper.
Real Estate Institute of AustraliaÂ president Pamela BennettÂ told theÂ Daily TelegraphÂ that she had never heard of this happening in her 35 years in the business but it shouldn’t put people off selling at auction as it simply reinforced that the process was legally binding.
“At all auctions you must be able to pay the deposit. It is unconditional,” she said.
Aireys Inlet Real Estate Open Housesjames@greatoceanroadrealestate.com.au 0418 585 815