Moffa v Starr

In the matter of Moffa v Starr, the dispute revolves around the sale of two properties in Norwood, jointly owned by Michele Moffa (deceased) and Andrew Moffa. Michelle Moffa, supported by other respondents, filed an interlocutory application seeking directions for the administrator, Mr Macolino, to sell these properties. Andrew opposed the application, arguing on behalf of the estate's beneficiaries. The central legal issues pertained to the appropriate timing for selling the properties, considering the fluctuating property market conditions and the impact of the Reserve Bank of Australia's interest rate increases.

The court examined the evidence provided by both parties, including affidavits from Michelle, Andrew, and a real estate agent, Christos Dimitrak. Dimitrak testified that the Adelaide property market had experienced a boom, but interest rates hikes since May 2022 had resulted in decreased buyer interest and lower property prices. He opined that selling the properties six months ago would have fetched a higher price and predicted further declines in property values. The court also considered reports from Domain and CoreLogic, which showed marginal increases in median house and unit prices, though these reports were explained as lagging indicators.

After weighing the evidence, the court concluded that selling the Stephen Street property was not advisable at this time, but the Edward Street property should be sold. The court issued orders directing the administrator to sell the Edward Street property, indemnify him, and permit him to use estate funds for related expenses and fees. Andrew was allowed to purchase the property if he wished, and the administrator was granted leave to file cross relief for the sale under the Law of Property Act 1936. The court also granted liberty to apply for further orders as needed.