The recent Queensland Supreme Court decision in Evans v Jan [2025] QSC 31 serves as a compelling reminder of the importance of obtaining legal advice before signing any contract. In this case, the buyer failed to pay the deposit ($98,500) on time and based on vague comments from the seller’s real estate agent, believed that late payment might be accepted.
Facts
This case stems from a dispute arising from a residential property sale contract between the plaintiff, Mr. Stephen Gary Evans (the purchaser), and the defendant, Ms. Yea Lan Jan (the seller). The contract stipulated a purchase price of $985,000, with a 10% deposit of $98,500 payable upon execution.
Chronology of Events:
- January 22, 2024: The contract was signed electronically by both parties at different times.
- January 23, 2024: The seller’s real estate agent informed the purchaser via email that the property was “under contract now,” indicating that the deposit was due on this date. However, the purchaser did not pay the deposit as required.
- January 24, 2024: At 9:00 AM, the purchaser transferred $45,000 into the agent’s trust account and emailed the agent, apologizing for the delay and stating that the balance would be paid the following day. The agent responded at 10:58 AM, acknowledging the partial payment and indicating she would inform the seller about the two-part deposit.
- January 25, 2024: The purchaser completed the deposit payment by transferring the remaining balance into the agent’s trust account.
- January 28, 2024: The seller, upon receiving legal advice, terminated the contract due to the purchaser’s failure to pay the full deposit on January 23, 2024, as stipulated in the contract.
The court found that the agent did not have the authority to vary the contract, resulting in the contract’s termination and the buyer losing the deposit.
This case highlights a key risk: verbal discussions or informal assurances may not hold legal weight. If the buyer had sought legal advice before signing the contract, they could have avoided this costly mistake. Engaging a solicitor before signing a contract ensures you fully understand your obligations and safeguards your interests.
If you’re entering into a property transaction, make sure you get proper legal advice—before it’s too late.