Issue with seller of subdivided land

Hi Everyone,

I'm Dan from Perth, Western Australia.

I am in the process of purchasing a plot of subdivided land in the City of Vincent. I have a contract in place with the current owner, and have subsequently met the terms on my side of the agreement (financial approval).

For some unknown reason, the owner now wants to terminate the contract. Initially, he claimed that the council won't approve his subdivision application unless a parking bay is added to the existing property. He claimed that the process involved in doing so would cost anywhere from 50k – 200k depending on which option he went with, and this would make the subdivision unviable.

I have since contacted the City of Vincent, and I have been advised that the owner's claims about this parking issue are completely untrue. In fact, the City are happy for the front property to simply purchase a street parking permit. I have also contacted the WA Planning Commission, and they have stated that they have no issues with his proposed subdivision either.

I called him out on this, and he has since come back saying that street parking is unacceptable, and unless the City of Vincent will allow him to add a parking bay on the verge adjacent to the existing dwelling, he won't go ahead with the subdivision (Note: The City of Vincent have already said no to the verge parking option, as the existing dwelling is on a busy street corner).

Apologies if this is a stupid question, but is he allowed to just break the contract like this, even though the subdivision has been approved by all relevant government bodies? We've met our side of the agreement (finance). Surely he must do the same, otherwise what the hell is the point of the contract in the first place?

In our contract we have stipulated that a deadline of June 30th for hand-over of titles. What can we do if the current owner just drags his feet and does nothing to subdivide the land as agreed?

Just thought I'd ask for some advice on here before engaging a property lawyer.

Thanks in advance for any advice / insights!

Cheers,
Dan.

 

What does the property lawyer who reviewed the contract for you before you signed it say? This is part of their job and what you are paying them for.

 

Hi there. We used the standard REIWA contract. This is our first time purchasing land, so I'm guessing this is a rookie mistake?

 

What does the standard reiwa contract say about what happens if the seller refuses to do the subdivision and fails to settle? Eg penalty interest?

 

You should have had a property lawyer handling this from the start, especially if you don't understand your rights and obligations in buying land 'off the plan'.

They pretty must cost the same as a non lawyer settlement agent, so its a bit of a no-brainer. Get a lawyer asap imo.

 

The contract was likely on the condition that the DA is approved by council.
There may be a clause stating that the vendor should take all reasonable steps to get the DA approved, though you may need a lawyer to argue that.

 

What does it say in the Subject To section? Unfortunately if it was written by yourselves or the agent it might be too vague and not enforceable as to what conditions the seller has to meet for the contract to be unconditional