Hearse v Staunton

[2011] NSWCA 139

NSW Court of Appeal

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Interrogate

Catchwords

1. Real Property
2. › Vendor and Purchaser
3. › Contracts for sale of land
4. › Variation of contract
5. › Addition of party after exchange
6. › Whether addition of name to existing contract without fresh exchange or formal variation creates enforceable contract
1. Agency
2. › Warranty of authority
3. › Solicitors
4. › Whether solicitor's correspondence constituted express or implied warranty of authority to act for non-client
5. › Whether solicitor represented authority to bind person as co-purchaser
1. Agency
2. › Solicitors' authority
3. › Conveyancing transactions
4. › Whether solicitors have implied authority to make contract on behalf of client in New South Wales
1. Real Property
2. › Vendor and Purchaser
3. › Conveyancing practice
4. › Exchange of contracts
5. › Presumption that parties do not intend to be bound until formal exchange
6. › Duties Act 1997 (NSW), s 18(3)

Quick Take

A solicitor's request to add a person's name to a transfer for stamp duty purposes under s 18(3) of the Duties Act 1997 (NSW) does not, without more, constitute a warranty of authority to bind that person as a co-purchaser under the contract for sale. No enforceable contract arises between vendors and an additional party where there is no fresh exchange of contracts or formal variation of the existing contract, particularly for valuable residential property.