WWLegal.com :: Mayer Mansion - Owners Win Suit Against Developer

Mayer Mansion - Owners Win Suit Against Developer
Posted on Monday, August 27, 2007 - 12:00 AM

Delays by the buyer, Travista Development, ended in deal being cancelled. The Owners of Mayer Mansion on Devonshire Road can keep the $3m deposit. They have a new offer of $42m from another buyer.

The case began in December 2006 when Travista agreed to buy Mayer Mansion and offered the owners of the 10 unit residential property $30 million in the collective sale.

However, Travista, which had to get a qualifying certificate to buy the property because it was foreign-owned, did not complete the transaction by March 12, 2007 as had been agreed between the parties.

Travista sued the owners on April 3,2007 and applied for an injunction to restrain them from exercising their rights under the agreement, but failed in its application.

Two days later, the owners notified Travista that they had rescinded the sale and purchase agreement. Travista finally obtained the qualifying certificate on April 11, 2007.

The case went to the High Court where Travista argued that it was entitled to complete the purchase but owners argued that Travista was obliged to use its 'best endeavours' to obtain the certificate and to do so 'without delay'.

Travista's case was dismissed by the High Court in May 2007 and the Court of Appeal in July 2007.

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