George v Fitzgerald

In *George v Fitzgerald*, the New South Wales Court of Appeal considered a dispute between a vendor and a purchaser concerning the sale of a property. The purchaser sought to terminate the contract of sale, alleging that the vendor had failed to disclose certain material facts about the property.

The central legal issue before the Court of Appeal was whether the vendor had a duty to disclose to the purchaser the fact that the property was subject to a registered easement, and if so, whether the failure to do so entitled the purchaser to terminate the contract. The Court also had to consider the implications of the purchaser's knowledge of the easement at the time of entering into the contract.

The Court of Appeal held that a vendor of land has a duty to disclose all material facts to a purchaser, even if those facts are discoverable through a reasonable inspection of the title. The Court reasoned that the purpose of disclosure is to ensure that the purchaser enters into the contract with full knowledge of all significant aspects of the property. In this instance, the existence of a registered easement was considered a material fact that should have been disclosed. The Court further found that the purchaser's knowledge of the easement at the time of contracting did not negate the vendor's duty to disclose, nor did it prevent the purchaser from terminating the contract based on the non-disclosure.

The Court of Appeal allowed the purchaser's appeal, finding that the vendor's failure to disclose the easement constituted a breach of contract, entitling the purchaser to terminate the agreement and recover their deposit.