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Expired deposit bond held to permanently satisfy purchaser’s deposit obligations before completion

The Supreme Court of NSW has found that a vendor on a contract for sale of land had no entitlement to a cash deposit from a purchaser after a deposit bond used in place of cash by the purchaser had expired.

The decision of Parkes v Mamo [2016] NSWSC 1129 highlights the care vendors should take to have in place contract clauses to protect themselves when unforeseen delays result in deposit bonds or other guarantees expiring before completion. 

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