Posts Tagged ‘insurance’

Property Briefs

July 5, 2016

Misrepresentations in property transactions: keep to the facts

The difference between ‘misrepresentations’ (which may support a claim for damages) and ‘mere puffery’ (being statements no reasonable person would take seriously) isn’t always clear. Enticing a purchaser into a contract by misrepresentations was a costly mistake by the vendor in a recent case. (1)

Aldrie Holdings Ltd (through its director Ms Laboyrie) purchased a farm for $2,900,000, but failed to make proper investigations before confirming the contract. Instead Aldrie chose to rely on statements made by Mr Prout, the vendor’s agent. Mr Prout boasted that the level of pasture, milking shed and water at the property were ‘excellent’. Given Ms Laboyrie’s general business experience, the judge held that these statements were clearly puffery as a reasonable purchaser would have made further enquiries to validate those claims.

(more…)

Insurance cover when entering into an Agreement for Sale and Purchase

August 23, 2013

If you are considering entering into an Agreement for Sale and Purchase, whether it be for a rural or residential property, purchasers should be mindful that obtaining insurance for the property may not be as easy as it once has been. Following the recent earthquakes in Wellington and Malborough some insurers are restricting the issuing of new policies. Before any Agreement for Sale and Purchase is confirmed unconditional, purchasers need to first ensure they will have adequate (and acceptable to any lender) insurance cover in place for the property.

Fire & General Insurance – Be careful with the level of cover you choose

August 23, 2013

As a result of the Christchurch earthquakes and recent natural events, insurance has been thrust into the limelight, with regard to the increasing cost (and the extent) of cover. The cost of fire and general insurance has increased dramatically and, accordingly, people are looking much more closely at what they are getting for their premiums and at the level of cover they have. In some instances, people are deciding to live with a level of risk, but two recent cases[1] involving the same incident show just how dangerous some of these decisions can be. (more…)