Nov 8, 2011
This is a case where the Defendants had been unable to pay their mortgage payments on their investment properties and as a result were issued a Property Law Act Notice by the bank. The Notice expired and the two properties were sold. The Defendant’s argued that the bank didn’t do enough to get a good price for the properties and that they should have received more advice from the bank when they purchased the properties.
The High Court determined that the Manthorpes had legal advice from the outset and that the bank had no duty whatsoever to give them advice on the pros and cons of buying investment properties.
Further the Court was satisfied that the steps taken by the bank ie listing the properties on Trademe, Open2 View and in the NZ Herald were sufficient to discharge the banks responsibilities to properly market the properties.
THE MESSAGE HERE IS THAT IT IS IMPORTANT TO GET GOOD LEGAL ADVICE BEFORE YOU SELL YOUR PROPERTY FROM YOUR LAWYER AND THE DECISION BASICALLY ENDORSES THE MARKETING APPROACH WHICH IS ADHERED TO UNDER THE ACRES SYSTEM