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The Age
5 days ago
- Business
- The Age
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, 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.
Sydney Morning Herald
5 days ago
- Business
- Sydney Morning Herald
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, 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.
