Rosenberg v Percival

Rosenberg v Percival concerned a dispute between a vendor and a purchaser of a property. The purchaser, Mr Percival, sought to terminate the contract of sale on the grounds that the vendor, Ms Rosenberg, had failed to disclose certain information regarding the property. The case was heard by the High Court of Australia.

The central legal issue before the High Court was whether the vendor had a duty to disclose to the purchaser, at the time of entering into the contract for sale, that the property was subject to a registered easement which granted a right of way to adjoining landowners. The court was required to consider the nature and extent of a vendor's duty of disclosure in contract for the sale of land, particularly in circumstances where the information in question was publicly available through the Torrens system of land registration.

The High Court, by majority, held that the vendor did not have a duty to disclose the existence of the registered easement. The majority reasoned that in the context of Torrens title land, a purchaser is expected to make their own inquiries and is bound by registered encumbrances, whether they have actual knowledge of them or not. The principle applied was that a vendor's duty of disclosure is generally limited to defects or matters that are not discoverable by a reasonably diligent purchaser. The existence of a registered easement, being a matter of public record, was considered discoverable.

The appeal was allowed, and the purchaser's claim for rescission of the contract was dismissed.