Vasiliou v Westpac Banking Corporation

Vasiliou was the mortgagor of certain property, with Westpac Banking Corporation as the mortgagee. Following a default by Vasiliou, Westpac sold the property by private treaty, without advertising, to a tenant in possession. Vasiliou subsequently sought to set aside the sale on the grounds that Westpac had not obtained the proper price and had not acted in good faith with regard to Vasiliou’s interests. The dispute was heard in the Supreme Court of Victoria. Westpac argued that the sale complied with statutory requirements under the Transfer of Land Act 1958.

The court was required to determine whether Westpac had obtained the proper price for the property and whether the sale was conducted in good faith and with regard to Vasiliou’s interests. The court considered whether Westpac had complied with the statutory requirement under section 77(1) of the Transfer of Land Act 1958, which allows for the sale of mortgaged property by private treaty without advertising if the sale is conducted in good faith and with regard to the mortgagor’s interests. The court also examined the adequacy of the sale price and whether it represented the true market value of the property.

The court found that Westpac had conducted the sale in accordance with the statutory requirements, as the sale was in good faith and took into account Vasiliou’s interests. The court noted that Westpac had taken steps to ensure that the sale price was fair, including obtaining a valuation report and considering the tenant’s offer. The court held that the sale price was reasonable and reflected the market value of the property, given the circumstances of the sale. Consequently, the court dismissed Vasiliou’s application to set aside the sale.

Westpac Banking Corporation was ordered to retain the proceeds of the sale, and Vasiliou’s application to set aside the sale was dismissed.