Written by: David Rule
If you’ve found the perfect property and are ready to sign, keep in mind that your real estate agent works for the Seller and can’t change or negotiate the contract terms on the Seller’s behalf.
Why is this so important to remember? Once the contract is signed, you’re responsible for meeting all the terms and deadlines given.
If anything is missed along the way, you could lose your deposit and potentially be sued by the Seller for any further losses.
Consider the following case that recently made its way to the Queensland Supreme Court: Evans v Jan [2025] QSC 31.
Buyer Misses Property Contract Deadline (By One Day)
On 22 January, 2024, Mr. Evans (the Buyer) signed a property contract with Ms. Jan (the Seller). The contract required Mr. Evans to pay a deposit of $98,500 the next day, 23 January, 2024.
Unfortunately, Mr. Evans couldn’t make the payment on time because his online banking wouldn’t allow him to transfer that large amount of money in one go without changing his account settings.
So, Mr. Evans opted to make the payment in smaller amounts over the next two days. Although he paid the full deposit in this timeframe, the payment was technically late according to the contract terms.
As a result, Ms. Jan terminated the contract on January 29, 2024, saying the late payment was the reason.
Eventually, the case was brought to the court. Mr. Evans wanted the court to force Ms. Jan to go through with a property sale after they both signed a contract. However, things didn’t go as planned.
The Court Sided with The Seller
You may be surprised to learn that the court sided with Ms. Jan and rejected Mr. Evans’ request for the court to force the sale.
As a result, Mr. Evans lost his $98,500 deposit, and Ms. Jan kept it, along with any interest that had accrued from January 29, 2024.
But what led the court to rule in favour of Ms. Jan? After all, Mr. Evans was only one day late with the full deposit payment.
Why the Court Upheld the Property Contract Terms
In this case, the legal battle between the Buyer and Seller revolved around the following questions:
- Did Ms. Jan’s real estate agent have the authority to grant an extension of the payment due date for the deposit?;
- Did Ms. Jan choose to go along with the late payment even though it breached their contract?;
- Could Ms. Jan be stopped from terminating the contract because her agent had allowed the delay?
Keep reading to learn how the Queensland Court answered each of these questions.
1. The Agent Didn’t Have Authority to Change the Payment Date
The judge ruled that the real estate agent didn’t have the authority to change the deposit date.
According to the contract, the agent’s job was just to introduce a buyer to the Seller, but the authority to change the terms was something that only the seller or their conveyancing solicitor could do.
2. Ms. Jan Didn’t Have to Accept the Late Payment
The court decided that Mr. Evans couldn’t argue that Ms. Jan had agreed to the delay because the real estate agent didn’t have the power to make that decision.
3. Ms. Jan Could Cancel the Contract
The court emphasised that the contract made it clear that timing was crucial, and Mr. Evans should have made sure he could meet all the terms before signing the contract.
Take Property Contract Terms Seriously
This case shows just how important it is to follow contract terms exactly, especially when it comes to paying deposits.
Even though a one- or two-day delay might seem small, in property contracts in Queensland, timing is very important (contracts provide that it is ‘of the essence), and missing a deadline can lead to serious consequences like losing your deposit.
It also shows that real estate agents don’t always have the authority to make changes to a contract. Buyers should make sure that if any changes or negotiations are needed, they’re done directly with the Seller or with the Seller’s solicitor.
Lastly, this case serves as a reminder to make sure your finances are in order before entering into contracts with big financial responsibilities and to get legal advice about the consequences of not following contract rules strictly.
If you have questions about property contracts or need legal advice, reach out to our property and conveyancing solicitors.
Disclaimer:
The information contained in this article is for general informational purposes only and is not intended to provide legal advice or substitute for the advice of a professional. This information does not consider your personal circumstances and may not reflect the most current legal developments. Should you need advice, please contact our firm for targeted information relating to personal your situation.
Greenhalgh Pickard’s Conveyancing Team
