Legal Tip 168: Joint Purchase but only 1 signs the contract

Legal Tip: Joint Purchase but only 1 signs the contract

Let’s say Mum and Dad agree to buy a property, jointly, in NSW and the contract is drawn up in both names, but only Dad signs the contract. Is it enforceable?

If neither party tries to pull out then there would be no issue, the contract would proceed and settlement occur as per normal, as long as the transfer was signed.

But if the contract doesn’t complete then the vendor could sue for breach of contract – but only the person that has entered the written contract, and signed it, could be liable as under s54 Conveyancing Act 1919 (NSW) no actions or proceedings could be brought against someone unless signatures are obtained:


(1) No action or proceedings may be brought upon any contract for the sale or other disposition of land or any interest in land, unless the agreement upon which such action or proceedings is brought, or some memorandum or note thereof, is in writing, and signed by the party to be charged or by some other person thereunto lawfully authorised by the party to be charged.

CONVEYANCING ACT 1919 - SECT 54A Contracts for sale etc of land to be in writing

I am not sure of the laws in other states on this

 

Would be a sloppy REA and solicitor to get that far I suspect. Same as signed by someone else (eg hubby signs for wife). But it happens.

 

Happens all the time, especially with the NSW contract - the place to sign where there are 2 people is not so clear.

 

In Victoria only the one person would be on the contract and a nominee added later.

An agent might make a mistake, but the conveyancers would shut down this problem very quickly, most likely re-writing the contract.

 

Come on Peter!

Standard practice in any state is for the purchasers to enter the contract. If there are 2 then both would enter it. It would be unusual to nominate an additional person to settle, though this may be a good strategy.