Falling Auckland house prices saw a buyer ordered to pay $553,300 damages covering loss on resale after he defaulted on a $1.38 million agreement to purchase a west Auckland home.
The High Court was told Piyush Makan agreed in September 2021 to buy a Simpson Road property in Ranui from Marc and Katherine Sofinowski. Contract price was initially $1.4 million; reduced by agreement one week later to $1.385 million. Settlement of his purchase was not required for eleven months.
One month prior to settlement, Mr Makan said he had been unable to raise finance. He again requested a reduction in price. The Sofinowskis refused, cancelling the contract when he failed to settle on due date. Simpson Road was put back on the market. Four offers were received, with a price differential of $80,000 between highest and lowest offer. They resold at $871,800.
Mr Makan was ordered to pay $553,300 for breach of contract. This included the difference between the original price and the price at subsequent sale, plus real estate expenses and interest on late settlement.
Sofinowski v. Makan – High Court (18.05.23)
23.073