Woollahra's $10.6m failed sale offers a lesson in contract law
But behind the scenes, the $1.06 million deposit owed on the exchange was fast becoming a matter of contention given claims Jabbour's first cheque bounced, and the sale was later secured by a bank transfer of $100,000. That equates to less than 1 per cent of the purchase price.
As Longhurst pursued his buyer for the outstanding amount, Gibson claimed she only became aware Jabbour had paid a fraction of the deposit until more than six weeks after the deal was due to settle, by which time they had already given Jabbour more time to finance her purchase, and the market had started its downward trajectory.
Gibson further claims she enlisted Longhurst on a 1.1 per cent commission, but that he reduced that by $16,000 after he broke the non-disclosure agreement by emailing his database with the bullish sale price. The commission was never paid.
The details behind the failed sale are set to be contested in the Supreme Court in coming months after Gibson launched legal proceedings in a bid to recoup her losses against Jabbour, Longhurst, and the agency's director, Michael Pallier.
Like Longhurst, Jabbour declined to comment for this story, so it remains unknown why she didn't complete on the sale, although their defences in the matter have been lodged with the court.
Pallier said he is included in the summons purely because he is the Sotheby's licensee, and had nothing to do with the sale.
But Pallier did back his leading agent Longhurst, ranking him among Sotheby's – and Sydney's – top sales guns.
Longhurst's own purchase of an almost $27 million home in Vaucluse recently made headlines in The Australian Financial Review, given it was the former home of Telstra executive director Maxine Brenner and her husband, One.Tel founder Jodee Rich.
Longhurst has form when it comes to selling high-end houses on a minimal deposit. Two years ago, he set a then-house price record in Paddington of $14 million when he sold the historic double terrace Brompton to Monte Carlo-based art adviser Richard Thompson.
But Thompson never settled on the purchase, and the seller Jacqueline Bailey was left with less than a 5 per cent deposit and the need to move back into the house before she relisted it a year later.
It eventually sold last September after what was ultimately a more than 18-month campaign, and for nearer to $12.5 million.
The binding nature of a sale contract and the 10 per cent deposit that is owed (regardless of what is agreed as an initial deposit) was most famously laid bare by Hollywood star Toni Collette and her former husband, musician Dave Galafassi in 2011 when they exchanged to buy a Paddington terrace for $6.35 million.
In Supreme Court proceedings that followed it was revealed that they later pulled out of the deal because they did not have the money.
The sellers Industrie Clothing co-founders Nick and Susie Kelly later resold the house for $5.5 million, and sued Collette and Galafassi for the difference. The celebrity former couple not only had to forfeit their 10 per cent deposit, but more than $600,000 in damages.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
West Australian
25 minutes ago
- West Australian
Pacific media face reckoning after US aid cuts
America's retreat from foreign aid is being felt deeply in Pacific media, where pivotal outlets are being shuttered and journalists work unpaid. The result is fewer investigations into dubiously motivated politicians, glimpses into conflicts otherwise unseen and a less diverse media in a region which desperately needs it. "It is a huge disappointment ... a senseless waste," Benar News' Australian head of Pacific news, Stefan Armbruster, told AAP after seeing his outlet go under. Benar News, In-depth Solomons and Inside PNG are three digital outlets which enjoyed US support but have been cruelled by President Donald Trump's about-face on aid. Benar closed its doors in April after an executive order disestablishing Voice of America, which the Unitd States created during World War II to combat Nazi propaganda. An offshoot of Radio Free Asia (RFA) focused on Southeast Asia and the Pacific, Benar kept a close eye on abuses in West Papua, massacres and gender-based violence in Papua New Guinea and more. The Pacific arm quickly became indispensable to many, with a team of reporters and freelancers working in 15 countries on a budget under $A1 million. "Our coverage of decolonisation in the Pacific received huge interest, as did our coverage of the lack women's representation in parliaments, human rights, media freedom, deep sea mining and more," Mr Armbruster said. In-depth Solomons, a Honiara-based digital outlet, is another facing an existential threat despite a proud record of investigative and award-winning reporting. Last week, it was honoured with a peer-nominated award from the Foreign Correspondents' Club of Japan for a year-long probe into former prime minister Manasseh Sogavare's property holdings. "We're just holding on," editor and co-founder Ofani Eremae told AAP. A US-centred think tank continues to pay the wage of one journalist, while others haven't drawn a salary since January. "It has had an impact on our operations. We used to travel out to do stories across the provinces. That has not been done since early this year," Mr Eremae said. A private donor came forward after learning of the cuts with a one-off grant that was used for rent to secure the office, he said. Its funding shortfall - like Port Moresby-based outlet Inside PNG - is linked to USAID, the world's biggest single funder of development assistance, until Mr Trump axed its multi-billion dollar budget. Much of USAID's funding was spent on humanitarian causes - such as vaccines, clean water supplies and food security - but some was also earmarked for media in developing nations, with the aim of bolstering fragile democracies. Inside PNG used its support to build an audience of tens of thousands with incisive reports on PNG politics: not just Port Moresby, but in the regions including wantaway province Bougainville that has a long history of conflict. "The current lack of funding has unfortunately had a dual impact, affecting both our dedicated staff, whom we're currently unable to pay, and our day-to-day operations," Inside PNG managing director Kila Wani, told AAP. "We've had to let off 80 per cent of staff from payroll which is a big hit because we're not a very big team. "Logistically, it's become challenging to carry out our work as we normally would." AAP has confirmed a number of other media entities in the region which have suffered hits, but declined to share their stories. The funding hits are all the more damaging given the challenges faced by the Pacific, as outlined in the Pacific Islands Media Freedom Index . The latest report listed a string of challenges, notably weak legal protections for free speech, political interference on editorial independence, and a lack of funding underpinning high-quality media, in the region. The burning question for these outlets - and their audiences - is do other sources of funding exist to fill the gap? Inside PNG is refocusing energy on attracting new donors, as is In-depth Solomons, which has also turned to crowdfunding. The Australian and New Zealand governments have also provided targeted support for the media sector across the region, including ABC International Development (ABCID), which has enjoyed a budget increase from Anthony Albanese's government. Inside PNG and In-depth Solomons both receive training and content-focused grants from ABCID, which helps, but doesn't fund the underpinning costs for a media business or keep on the lights. Both Mr Eremae, who edited two major newspapers before founding the investigative outlet, and Mr Armbruster, a long-time SBS Correspondent, expressed their dismay at the US pivot away from the Pacific. "It's a huge mistake on the part of the US ... the world's leading democracy. The media is one of the pillars of democracy," Mr Eremae said. "It is, I believe, in the interests of the US and other democratic countries to give funding to media in countries like the Solomon Islands where we cannot survive due to lack of advertising (budgets). As a veteran of Pacific reporting, Mr Armbruster said he had witnessed US disinterest in the region contribute to the wider geopolitical struggle for influence. "The US government was trying to re-establish its presence after vacating the space decades ago. It had promised to re-engage, dedicating funding largely driven by its efforts to counter China, only to now betray those expectations," he said. "The US government has senselessly destroyed a highly valued news service in the Pacific. An own goal."
Perth Now
37 minutes ago
- Perth Now
Pacific media face reckoning after US aid cuts
America's retreat from foreign aid is being felt deeply in Pacific media, where pivotal outlets are being shuttered and journalists work unpaid. The result is fewer investigations into dubiously motivated politicians, glimpses into conflicts otherwise unseen and a less diverse media in a region which desperately needs it. "It is a huge disappointment ... a senseless waste," Benar News' Australian head of Pacific news, Stefan Armbruster, told AAP after seeing his outlet go under. Benar News, In-depth Solomons and Inside PNG are three digital outlets which enjoyed US support but have been cruelled by President Donald Trump's about-face on aid. Benar closed its doors in April after an executive order disestablishing Voice of America, which the Unitd States created during World War II to combat Nazi propaganda. An offshoot of Radio Free Asia (RFA) focused on Southeast Asia and the Pacific, Benar kept a close eye on abuses in West Papua, massacres and gender-based violence in Papua New Guinea and more. The Pacific arm quickly became indispensable to many, with a team of reporters and freelancers working in 15 countries on a budget under $A1 million. "Our coverage of decolonisation in the Pacific received huge interest, as did our coverage of the lack women's representation in parliaments, human rights, media freedom, deep sea mining and more," Mr Armbruster said. In-depth Solomons, a Honiara-based digital outlet, is another facing an existential threat despite a proud record of investigative and award-winning reporting. Last week, it was honoured with a peer-nominated award from the Foreign Correspondents' Club of Japan for a year-long probe into former prime minister Manasseh Sogavare's property holdings. "We're just holding on," editor and co-founder Ofani Eremae told AAP. A US-centred think tank continues to pay the wage of one journalist, while others haven't drawn a salary since January. "It has had an impact on our operations. We used to travel out to do stories across the provinces. That has not been done since early this year," Mr Eremae said. A private donor came forward after learning of the cuts with a one-off grant that was used for rent to secure the office, he said. Its funding shortfall - like Port Moresby-based outlet Inside PNG - is linked to USAID, the world's biggest single funder of development assistance, until Mr Trump axed its multi-billion dollar budget. Much of USAID's funding was spent on humanitarian causes - such as vaccines, clean water supplies and food security - but some was also earmarked for media in developing nations, with the aim of bolstering fragile democracies. Inside PNG used its support to build an audience of tens of thousands with incisive reports on PNG politics: not just Port Moresby, but in the regions including wantaway province Bougainville that has a long history of conflict. "The current lack of funding has unfortunately had a dual impact, affecting both our dedicated staff, whom we're currently unable to pay, and our day-to-day operations," Inside PNG managing director Kila Wani, told AAP. "We've had to let off 80 per cent of staff from payroll which is a big hit because we're not a very big team. "Logistically, it's become challenging to carry out our work as we normally would." AAP has confirmed a number of other media entities in the region which have suffered hits, but declined to share their stories. The funding hits are all the more damaging given the challenges faced by the Pacific, as outlined in the Pacific Islands Media Freedom Index. The latest report listed a string of challenges, notably weak legal protections for free speech, political interference on editorial independence, and a lack of funding underpinning high-quality media, in the region. The burning question for these outlets - and their audiences - is do other sources of funding exist to fill the gap? Inside PNG is refocusing energy on attracting new donors, as is In-depth Solomons, which has also turned to crowdfunding. The Australian and New Zealand governments have also provided targeted support for the media sector across the region, including ABC International Development (ABCID), which has enjoyed a budget increase from Anthony Albanese's government. Inside PNG and In-depth Solomons both receive training and content-focused grants from ABCID, which helps, but doesn't fund the underpinning costs for a media business or keep on the lights. Both Mr Eremae, who edited two major newspapers before founding the investigative outlet, and Mr Armbruster, a long-time SBS Correspondent, expressed their dismay at the US pivot away from the Pacific. "It's a huge mistake on the part of the US ... the world's leading democracy. The media is one of the pillars of democracy," Mr Eremae said. "It is, I believe, in the interests of the US and other democratic countries to give funding to media in countries like the Solomon Islands where we cannot survive due to lack of advertising (budgets). As a veteran of Pacific reporting, Mr Armbruster said he had witnessed US disinterest in the region contribute to the wider geopolitical struggle for influence. "The US government was trying to re-establish its presence after vacating the space decades ago. It had promised to re-engage, dedicating funding largely driven by its efforts to counter China, only to now betray those expectations," he said. "The US government has senselessly destroyed a highly valued news service in the Pacific. An own goal."
West Australian
an hour ago
- West Australian
Captain turns down Saudi riches to stay with Man Utd
Manchester United captain Bruno Fernandes has turned down a proposed move to Saudi club Al Hilal because he wants "to play at the highest possible level". Fernandes confirmed on Tuesday he had received an "exciting offer" from the Riyadh-based club to switch after what was a disappointing season for United. "They waited for me to think about my future, because I said only if Manchester thought it was the time to move on that I'd be willing to do so," Fernandes said through an interpreter. "I talked to the gaffer, Ruben Amorim, and at the time he asked me not to go. I then talked to Man United. They said they didn't want to sell me. If I wanted to go, I could, but they didn't need the money, they didn't need to sell me." Media reports suggested Al Hilal was prepared to pay 100 million pounds ($A209 million) to take the 30-year-old Fernandes from United, while offering him a wage of 700,000 pounds ($A1.46 million) a week to play for the Saudi Pro League team, which will compete in the Club World Cup this month in the United States. "It was a very exciting offer," Fernandes said. "The president of Al Hilal, he was very nice to me. He talked to my manager, but then I talked to my wife and as a family we wanted to see what I wanted to do. She asked me, what do you want to do with your future?" Fernandes last year signed a contract extension to stay at Old Trafford until June 2027. This season did not go as planned as the Red Devils failed to qualify for the Champions League after finishing 15th in the Premier League. United also endured the heartbreak of losing the Europa League final to Tottenham. "We had goals and we didn't meet them," said Fernandes, a key figure for United since his arrival in January 2020. He said it would have been easy for the family to make the move to Riyadh, and for him to adjust to the team with Portugal teammates Ruben Neves and Joao Cancelo already playing for Al Hilal. "I'm used to them, but I want to play at the highest possible level," Fernandes said. "I want play for major competitions. I know I still can, and I want to be happy doing the thing I love the most." Fernandes was speaking as a Portugal player before the team's Nations League semi-final against Germany on Wednesday (Thursday AEST) in Munich. The winner of that game will face either France or Spain in Sunday's final.
