Rescission of Apartment Sale Contract Due to Internal Area Discrepancy
📌 In brief
The claimant successfully rescinded a contract for the sale of a residential apartment because the actual internal area of the apartment was more than 5% less than the expected area. The court ruled in favour of the claimant, returning the deposit.
⚖️ Legal holding
A purchaser of a residential apartment can rescind a contract if the actual internal area of the apartment is more than 5% less than the expected internal area.
📚 Full judgment
The summary, holding and questions above are VadeLab’s own material. The official decision itself is published by the court, and we do not reproduce it on this page.
📄 Read the full judgment⚖️ View on the official court website ↗
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The expected internal area of the unit was 75 m² because this fact was known to both parties when they entered the contract.
- The buyer could rely on her partner's knowledge about the internal area because he acted as her agent.
- The contract for sale off the plan by a developer was considered conduct in trade or commerce, making the consumer law applicable.
- The buyer's partner would have rescinded the contract if he had known the true internal area was more than five percent less than 75 m².
- The section 96 plan, approved by the Council, supported the 75 m² comparator as it was an objectively discernible document known to both sides.
❌ Tends to be rejected
- The argument that the agency relationship was diminished because the buyer received legal advice was rejected.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What was the dispute about?
The dispute was over the internal area of a residential apartment, where the actual area was less than the expected area by more than 5%.
How did the court decide, and why?
The court decided in favour of the claimant, ruling that the actual internal area of the apartment was less than the expected area by more than 5%, allowing the rescission of the contract.
What was the argument that mattered most?
The argument that mattered most was that the actual internal area of the apartment was less than the expected area by more than 5%, allowing the rescission of the contract.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, allowing the rescission of the contract.
What does this mean for someone in a similar situation?
Someone in a similar situation can rescind a contract if the actual internal area of the property is more than 5% less than the expected area.
What evidence or documents mattered?
The evidence that mattered included the actual internal area measurements and the contract terms regarding the expected internal area.