Harofam Pty Ltd v Scherman

(2013) 42 VR 372; [2013] VSCA 104

Victorian Court of Appeal

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Interrogate

Catchwords

1. Real Property
2. › Sale of land
3. › Contract
4. › Interpretation
5. › Time for registration of plan of subdivision
6. › Whether contract validly rescinded by purchaser
7. › Whether plan not registered on 'relevant date'
8. › Whether contract 'specifies another period'
9. › Sale of Land Act 1962 (Vic), s 9AE(2)
1. Statutory Interpretation
2. › Meaning of 'specifies another period'
3. › Whether clause conferring unilateral vendor power to extend registration period 'specifies' a period
4. › Requirement of fixed and ascertainable period at time of contract
5. › Sale of Land Act 1962 (Vic), s 9AE(2)
1. Practice and Procedure
2. › Stare decisis
3. › Intermediate appellate court
4. › Whether bound to follow previous decision of same court
5. › Whether bound to follow decision of another intermediate appellate court on legislation in pari materia

Quick Take

A contract for the sale of a lot on an unregistered plan of subdivision that confers on the vendor a unilateral power to extend the plan registration period — even if limited to a single extension of a maximum specified duration — does not 'specify another period' within the meaning of s 9AE(2) of the Sale of Land Act 1962 (Vic). To displace the statutory 18-month rescission right, the contract must specify a fixed and ascertainable period at the time the contract is entered into. Vendors drafting off-the-plan contracts must nominate a specific period (e.g., 30 months) rather than a base period with an extension mechanism.