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[Anonymous]

In April I paid for a strata report on a building containing a flat which I wanted to buy. The strata report found no problems, and I went ahead with the purchase. I have now found out that special levies are needed to pay for $600,000 in water damage, and that this damage, and the costs, had been clearly minuted in past meetings of the owners corporation. The strata report missed it. What redress, if any, do I have?

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[Anonymous]

Hi Jacspencer

 

Broadly speaking there may be three possible causes of action – breach of contract, negligence and breach of Fair Trading Act / Trade Practices Act.

 

Generally you would look to sue in contract rather than the other two as it is easier. However, success in any of these actions depends upon the precise terms of the contract.

 

If the terms of the contract with the strata search firm (which may be oral as well as written) require disclosure of items which have not been disclosed, then there has been a breach of the contract. There are then a series of questions which need to be asked regarding whether the breach caused loss, etc (ie would you have purchased anyway if you'd been told the reality of the position or would you have purchased at a lower price, what loss have you suffered and how is it calculated, etc).

 

Actions in the CTTT or potentially the Local Court are possible, but again depend upon the precise facts (eg Local Court has a jurisdiction of disputes up to $60,000).

 

Let me know if you have any further questions.

 

Regards

 

Chris Kerin

TEYS Lawyers

chris@teyslawyers.com.au

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