Sterling Estates Development Corporation Pty Limited v Malouf & Anor

(2003) 58 NSWLR 685; [2003] NSWCA 278

NSW Court of Appeal

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Interrogate

Catchwords

1. Contract
2. › Construction of contract
3. › Contract for construction and sale of apartment
4. › Definition of 'Special Fault'
5. › Whether uneven floor constituted fault requiring urgent attention or posing danger to persons
6. › Application of noscitur a sociis principle
1. Contract
2. › Sale of land
3. › Contract for sale of land and construction of dwelling
4. › Implied terms as to fitness for habitation
5. › Vendor's obligations at completion
6. › Distinction between defects requiring repair before and after completion

Quick Take

In contracts for the construction and sale of apartments off the plan, a 'Special Fault' clause requiring repair before completion is to be construed as requiring a fault or defect of such a nature that the purchaser would be substantially unable to occupy the unit if it was not repaired prior to completion. The word 'urgent' in such a clause connotes immediacy, not merely priority. A 12mm deviation in floor level that can be rectified over two days by grinding and levelling compound does not constitute a Special Fault.