Notice to complete – Conveyancing — Contract for sale —— Where vendor failed to serve notice of attornment — Where vendor allegedly failed to provide documentation for calculation of adjustment figures — Where vendor allegedly failed to notify purchaser of breach of lease — Whether vendor’s conduct prevented issuance of valid notice to complete — Whether termination based on failure to comply with notice to complete valid
A notice to complete must satisfy several legal conditions to be considered valid:
1. Compliance with Contractual Terms: The notice must strictly follow the provisions outlined in the contract, including the specified timeframe for performance and any particular procedures mandated by the agreement.
2. Good Faith: The issuer of the notice must act in good faith, ensuring that their actions do not undermine the contractual relationship or constitute an abuse of process.
3. Substantial Performance: The party issuing the notice must have substantially fulfilled their own contractual obligations. Minor breaches or non-critical deviations typically do not invalidate the notice.
Bavulo Pty Limited v Zhang Property Pty Limited highlights the importance of sticking to the terms of the contract; acting in good faith when issuing notices to complete.
A vendor must make sure that they comply with the terms of the contract. Buyers should be aware that failing to adhere to a valid notice to complete can result in the termination of the contract and forfeiture of a deposit. This case is a reminder of the law in relation to notices to complete in real estate transactions.
