Event and Time
Event Description
The case involves a dispute between Northwalker Realty Pty Ltd, a real estate agent, and TFM Chatswood Land Pty Ltd, a property developer. The plaintiff sought to recover commission under an agency agreement pertaining to the sale of units in a residential complex known as the Xanadu project. The commission was contested due to conditions surrounding the completion of contracts that were contingent on the registration of a strata plan, which was not achieved by the agreed timeline.
Application and Claims
- Plaintiff: Northwalker Realty Pty Ltd claims it is entitled to a commission of $1,504,110.59 under the agency agreement for facilitating the execution of 30 contracts related to the sale of apartments.
- Defendant: TFM denies the entitlement to commission, claiming the sales did not complete primarily due to the late registration of the strata plan, affecting the validity of the contracts and the absence of certain compliance elements under the Property and Stock Agents Act 2002 (NSW).
Judicial Decisions
- The court ruled that the plaintiff was entitled to the commission as claimed, amounting to $1,504,110.59, including interest.
- The defendant was ordered to pay the costs of the proceedings, but the judgment's enforcement was to be stayed for 28 days to allow the defendant to seek to set aside the judgment.
Dispute Points and Legal Basis
Dispute Points
- Plaintiff's Claim:
- Asserted entitlement to commission per the agency agreement based on the commission structure outlined (5.5% on total sales). - Marketing efforts led to 30 contracts being signed; thus, commission should be due despite uncompleted sales.
- Defendant's Defence:
- Claimed that completion of contracts was conditional upon strata plan registration, which was missed, and thus agency duties could not be fulfilled. - Argued that the agency agreement did not comply with the Property and Stock Agents Act, specifically as it did not adhere to required writing and specification standards.