Susan McCaw’s aunt agreed to sell her half a 33 hectare block of family land at Moerewa in Northland, left her with the job of getting separate titles surveyed off and then refused to go ahead with the sale after already receiving half the purchase price and letting them start building a home on site. The High Court ordered Mary Owen honour the sale.
In 2018, Aunt Mary told Susan and John McCaw to leave the Moerewa property. She planned to keep the $42,250 already received as part payment for purchase of the land, claiming the money as rent for occupation of her property. The McCaws stayed put, suing to prove ownership.
The High Court was told Mary Owen owned in conjunction with her late husband’s estate a 33 hectare block of poorly managed farmland near Moerewa. A March 2016 contract was signed with her niece Susan and husband John McCaw selling a fifteen hectare slice for $90,000. It transpired there was no resource consent for a subdivision and no survey yet completed to determine title for the McCaws’ fifteen hectares. A new deal was struck: the McCaws would arrange and pay for costs of the subdivision; the purchase price was reduced to $85,000; Mary would receive the $20,000 deposit directly even though there was as yet no clear title; and the McCaws could shift on site immediately and start building their family home.
Council subdivision requirements took longer than expected. Meanwhile, Mary demanded payment of the full purchase price. By early 2017, the McCaws had paid her half the purchase price and were holding the consents required from Far North District Council. All that was required was Mary’s signature as registered owner of the land being subdivided. She refused to sign, blocking the issue of new titles.
In the High Court, Justice Woolford ruled there was a binding contract for sale of fifteen hectares to the McCaws. Mary Owen was ordered to sign the approved subdivision plan. If she refused, the registrar of the High Court at Whangarei was authorised to sign the paperwork necessary to have title issued and land transferred to the McCaws.
McCaw v. Owen – High Court (7.07.21)
21.117