Queensland Father's Property Dream Shattered by Banking Delay
A Queensland father has revealed how his life was nearly destroyed after losing a $98,500 home deposit and the property itself when a banking transfer delay triggered a harsh legal clause. Stephen Evans, a father of two, found a two-storey house in Shailer Park, Logan, in January 2024 and signed a contract to purchase it. However, when his bank repeatedly blocked attempts to transfer the full 10 percent deposit on time, the seller invoked a clause allowing them to terminate the deal and keep the money, leaving Evans devastated.
Heartbreaking Loss of Future Plans
'It tore my heart out. It's not just what I've lost at the moment, it's what I've lost for my future as well,' Evans told 9's A Current Affair. 'Losing that sort of money, not being able to provide a home for my two girls, it came damn close to destroying my life.' The dad explained he had spent years trying to break into the housing market when he discovered the Shailer Park property. He offered $985,000 with a $20,000 upfront deposit, which was accepted, but the seller insisted on a 10 percent deposit paid on the day the contract was signed.
Banking Limits and Failed Transfers
When Evans attempted to transfer the $98,500 deposit, his banking institution repeatedly denied the transactions due to a $50,000 daily limit. Despite receiving confirmation from the selling agent that it would be acceptable to transfer the remaining balance over the next two days, the seller ultimately decided not to proceed with the sale. The day after the deadline, Evans sent $45,000 and contacted selling agent Fiona Tan from Cocco Property to explain the rest would be paid the following day.
In a text message to Evans, Tan reportedly replied: 'Ok. As long as I let seller know. Two deposits today and tomorrow.' The deposit was then made in full, but Tan later notified him the seller would not be going ahead with the contract, allowing the seller to keep Evans' full deposit.
Legal Consequences and Court Ruling
'I just couldn't believe it. It's now set a precedent and could affect many, many other people who aren't aware of what potentially could happen from what an agent is telling you,' Evans said. According to Miller Sockhill Lawyers, under a standard Real Estate Institute of Queensland contract, a seller can terminate the contract and forfeit the deposit if the buyer breaches an essential term, including payment requirements.
Evans expressed confusion, stating, 'I didn't quite understand why. I had communication in writing that it was okay to pay the deposit over the next two days. We had indication from the agent it would be fine.' Although the seller eventually returned Evans' deposit, he wanted to proceed with the purchase and took the matter to Queensland's Supreme Court. However, the judge found Tan had no authority to change the terms of a signed legal document and ordered Evans to forfeit the $98,500 deposit to the seller, with interest, and pay the seller's legal fees.
Expert Advice on Property Contracts
Richard Holt from Holt Ronan Lawyers emphasized that standard REIQ contracts must be strictly complied with by both buyers and sellers. 'Buying a property is a serious matter, it is critical you get professional and accurate advice from an experienced property lawyer,' Holt said in a blog post. 'The agent does not have the authority to vary a term. Do not rely on their representations in that regard. While they are often trying to be helpful, a contract is a legal document which must be complied with.'
Holt added, 'Conveyancing transactions can, and do, go wrong sometimes and you could lose not just the chance to purchase the property, but your deposit (and more).' Evans now says he cannot afford to challenge the Supreme Court's decision or take Tan to court. When contacted for comment, Tan abruptly ended the call, declining to discuss the matter further.
