A homebuyer has lost his entire house deposit and new home because he was two days late with a payment due to his bank’s transfer limits.
Stephen Gary Evans’ hopes of buying a new property turned into a nightmare when the Supreme Court of Queensland ruled that his entire $98,500 deposit would be forfeited.
The situation began when Mr Evans agreed to buy a five-bedroom Shailer Park home near Logan, south of Brisbane, from vendor Yea Lan Jan for $985,000.
Both parties signed the property sale contract on January 22, 2024 and the sale was confirmed by the real estate agent the next day.
The contract stipulated that the 10 per cent deposit be paid the same day.
However, Mr Evans was unaware of Queensland’s strict property purchase laws and banking transfer limits.
He was advised by the bank that he would need to visit a branch if he wanted to increase his transfer limit from the $50,000 threshold.
Stephen Evans’ hopes of buying this five-bedroom Shailor Park home turned into a nightmare when the Supreme Court of Queensland ruled that his $98,500 deposit would be forfeited due to a breach of contract
The court outcome has prompted buyer’s agent Jordan Veleski (left) to warn homebuyers about the expensive consequences of breaching a contract and the importance of engaging professional experts
Mr Evans transferred $45,000 into the real estate agent’s trust account the next day.
‘Do apologise, deposit today and balance tomorrow. Very sorry, bank is very painful to deal with,’ he texted the agent.
The agent replied: ‘OK. As long as I let seller know. Two deposits today and tmr’.
Mr Evans did not hear anything further from the agent and transferred the remaining $53,500 in three instalments the next day.
Three days later, the agent advised Mr Evans that the vendor had since terminated the sale due to the deposit not being paid by the due date.
He tried to force the sale to proceed by taking the matter to the Supreme Court of Queensland.
Ms Jan told the court that she never authorised an extension period for the deposit and that she was not advised by the agent that there would be delays.
The court dismissed Mr Evans’ claim and ruled that Ms Jan could keep the $98,500 deposit plus interest.
The March 2025 court ruling has prompted experts to warn homebuyers about the expensive consequences of breaching a contract and the importance of engaging professionals such as a conveyancer and lawyer when buying a property.
The vendor terminated the property sale due to the 10 per cent deposit not being paid by the due date
Buyer’s agent Jordan Veleski hopes the court ruling does not set a dangerous precedent
Sydney property owner turned buyers agent Jordan Veleski has built a portfolio worth close to $5million, which includes five investments across Australia, as well as his own family home, which is nearly paid off.
He detailed how he structures deals and offers when dealing with real estate agents and vendors by allowing time in the contract for pest control, building inspections and finance approval.
Mr Veleski also ensures the contract allows the deposit balance to be paid within 24 hours of the contract becoming unconditional, to cover all bases.
‘The first thing to do when looking to buy a home is to engage a conveyancer and solicitor – you shouldn’t be doing it alone,’ he told Daily Mail.
‘You need to understand what you’re getting into before you sign the contract.’
He described what happened to Mr Evans as devastating and hopes that the terminated contract does not set a dangerous precedent.
‘What happened was morally wrong but legally correct,’ Mr Veleski said.
‘It could have easily been avoided. It’s not a good look if we want people to get into the property market.
Homebuyers are urged to seek advice from a conveyancer and solicitor before signing the contract
‘Why would someone do this to someone else, knowing full well how hard it is to get into the property market and how much these people would have saved to even buy this property.’
Other Aussies were just as shocked.
‘That’s straight up evil,’ one commented on Mr Veleski’s video.
Another added: ‘That’s unacceptable. Give the man his money back.
Others were less than sympathetic.
‘Rules are rules….it’s clear when buying property. It’s also stated in the contract. Can’t pay, don’t sign,’ one wrote.
Another added: ‘Breach of contract is breach of contract. Expensive lesson unfortunately.’
Homebuyers need also be aware that the laws regarding property transfers and contracts vary in each state and territory.
