A shocking property case in Australia has highlighted the severe consequences of breaching real estate contracts, after a homebuyer lost his entire deposit and the chance to purchase a new home due to being just two days late with payment.
Court Ruling Forfeits $98,500 Deposit
Stephen Gary Evans' dream of buying a property turned into a financial nightmare when the Supreme Court of Queensland ruled that his $98,500 deposit would be forfeited. The March 2025 court decision has prompted property experts to issue urgent warnings to homebuyers about the costly risks of failing to adhere strictly to contract terms.
The Property Purchase That Went Wrong
The situation began when Mr Evans agreed to purchase a five-bedroom home in Shailer Park near Logan, south of Brisbane, from vendor Yea Lan Jan for $985,000. Both parties signed the property sale contract on January 22, 2024, with the real estate agent confirming the sale the following day.
The contract specifically stipulated that the 10 percent deposit must be paid on the same day as signing. However, Mr Evans was unaware of Queensland's stringent property purchase laws and encountered banking transfer limitations that complicated the payment process.
Banking Limitations and Communication Breakdown
Mr Evans was advised by his bank that he would need to visit a branch in person to increase his transfer limit beyond the $50,000 threshold. He initially transferred $45,000 into the real estate agent's trust account the next day, texting the agent: 'Do apologise, deposit today and balance tomorrow. Very sorry, bank is very painful to deal with.'
The agent responded: 'OK. As long as I let seller know. Two deposits today and tmr.' Mr Evans transferred the remaining $53,500 in three instalments the following day, believing the matter was resolved.
Vendor Terminates Sale Over Breach
Three days later, the agent informed Mr Evans that the vendor had terminated the sale due to the deposit not being paid by the contractual due date. When Mr Evans attempted to force the sale to proceed by taking the matter to the Supreme Court of Queensland, the vendor testified that she never authorized any extension period for the deposit payment and was not properly advised by the agent about potential delays.
The court ultimately dismissed Mr Evans' claim and ruled that Ms Jan could legally keep the $98,500 deposit plus accrued interest, finding that the contract breach was clear and significant.
Expert Warnings for Homebuyers
The court outcome has prompted buyer's agent Jordan Veleski to speak out about the expensive consequences of breaching property contracts. 'The first thing to do when looking to buy a home is to engage a conveyancer and solicitor - you shouldn't be doing it alone,' he emphasized. 'You need to understand what you're getting into before you sign the contract.'
Mr Veleski, who has built a property portfolio worth nearly $5 million across Australia, described what happened to Mr Evans as devastating and expressed concern that the terminated contract could set a dangerous precedent. 'What happened was morally wrong but legally correct,' he stated. 'It could have easily been avoided. It's not a good look if we want people to get into the property market.'
Public Reaction and Legal Reality
The case has generated strong reactions from Australians, with many expressing shock at the outcome. 'That's straight up evil,' one person commented on social media discussions about the case. Another added: 'That's unacceptable. Give the man his money back.'
However, others took a more legalistic view. 'Rules are rules....it's clear when buying property. It's also stated in the contract. Can't pay, don't sign,' wrote one observer. Another commented: 'Breach of contract is breach of contract. Expensive lesson unfortunately.'
Critical Lessons for Property Buyers
Mr Veleski detailed how he structures property deals to protect buyers, including allowing time in contracts for pest control inspections, building assessments, and finance approval. He also ensures contracts specify that deposit balances must be paid within 24 hours of the contract becoming unconditional.
Homebuyers must be aware that property transfer laws and contract requirements vary significantly between Australian states and territories, making professional legal advice essential before signing any agreement. The Queensland case serves as a stark reminder that even minor delays in meeting contractual obligations can result in substantial financial losses and the collapse of property transactions.
