High Court refused fast track summary judgment for a $1.2 million loss on resale after default on a 2021 purchase of two Auckland apartments following allegations the resales were not bona fide sales with the developer accused of rigging the resale.
A full court hearing is required to sort out the facts.
Evidence was given that an investment company called GWT NZ Ltd purchased the two apartments in Ranfurly Road Epsom at some $1.8 million each. Director Wei Lang guaranteed payment.
GWT defaulted on settlement eighteen months later. Property prices had fallen in the interim.
The general rule is that a defaulting purchaser is liable for any loss on resale.
Property developer Ranfurly Jixiang Development Ltd sued both GWT and Ms Lang, seeking High Court fast track summary judgment for the resale loss.
Associate Judge Taylor ruled circumstances surrounding each resale require investigation.
Ms Lang alleges there was no bona fide resale process.
The apartments were offered for sale at an immediate discount of more than $500,000 each with no attempt to gauge current market prices, she claims. Listing agreements with real estate agent Barfoot & Thompson made no provision for advertising costs. These listings expired with no advertising and no sales. The two apartments were subsequently sold in what amounted to private sales with the purchasers suspected of having links to a director of Ranfurly Jixiang Development, she claims.
Ranfurly Jixiang Development Ltd v. GWT New Zealand Ltd – High Court (10.10.24)
25.011