Bonacci v Ruyten

Bonacci was the owner of a property in Geelong, which he sold to Ruyten. Ruyten later discovered that the property's title was not as described in the contract of sale. Ruyten sought relief under the Sale of Land Act 1962, claiming that the sale was defective due to the non-compliance with certain statutory requirements. The dispute reached the Supreme Court of Victoria, where the court had to determine whether the sale was voidable due to a breach of section 32(2)(b) or (e) of the Sale of Land Act 1962.

The primary legal issue was whether there was a breach of the statutory requirements under section 32(2)(b) or (e). Section 32(2)(b) pertains to the sale of land in a subdivided state without the consent of the vendor, while section 32(2)(e) relates to the sale of land without a certificate of title. The court examined the facts to establish if either of these provisions applied to invalidate the sale. The court considered whether the property was sold in a subdivided state without consent and whether a certificate of title was required and provided.

In its decision, the court held that Ruyten's claim under section 32(2)(b) was not substantiated as there was no evidence that the property was sold in a subdivided state without the vendor's consent. However, the court found that the sale was voidable under section 32(2)(e) as there was no certificate of title provided at the time of sale, which is a mandatory requirement under the Act. Consequently, the sale of the property was deemed defective due to the non-compliance with statutory provisions, and Ruyten was entitled to relief.

The Supreme Court of Victoria declared the sale of the property to be voidable and ordered that the sale be set aside. The court further directed that the property be reconveyed to Bonacci and that Ruyten be refunded the purchase price, less any damages or costs incurred by Bonacci due to the void sale. This decision underscores the importance of adhering to statutory requirements in real estate transactions to avoid potential voidability of the sale.