1A solicitor retained to act on the purchase of commercial property owes a duty to advise the client prior to exchange on obtaining building and pest reports and on the essential terms of the contracts, and the complete absence of contemporaneous file notes, correspondence, or written confirmation of advice is a powerful factor against accepting a solicitor's claim to have given extensive oral advice.
2A local council exercising discretionary building inspection and enforcement powers under the Building Act 1993 (Vic) does not owe a duty of care to a subsequent purchaser of commercial property to prevent pure economic loss, where the purchaser was not vulnerable and was capable of obtaining independent professional advice.
3In a 'no transaction' solicitor's negligence case where the plaintiff would not have entered the transaction but for the negligent failure to advise, damages are ordinarily assessed on a diminution-in-value basis (difference between price paid and actual value) rather than on the cost of repair or reinstatement of the property.
Case Details
Citation[2025] NSWSC 24
CourtNSWSC
JurisdictionNew South Wales
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