Smart Property Investment magazine talk to Ray Ellis.
The West Australian Supreme Court decided that a buyer was entitled to rescind the contract on her purchase of the $390,000 unit because of the seller’s failure to disclose historical problems with a neighbour living upstairs in the strata complex.
The buyer discovered the issue herself after being informed of abuse directed at tradespeople undertaking renovations before she moved in. Further inquiries at that point revealed prior reports of belligerent behaviour on the part of the neighbour.
There is still an ongoing compensation claim being made by the buyer, which now exceeds $500,000. The ruling in the compensation claim rests on a determination of the fair value of the property, had the conduct of the neighbour been taken into account at the time of purchase.
First National Real Estate chief executive Ray Ellis has said this incident should serve as a warning to all parties involved in a strata sale.