In 2009, the first respondents purchased a “trophy home” property on the Gold Coast, financed in part by the applicant. The first respondents fell into arrears on the loan and after the applicant obtained default judgment for recovery of possession of the property it contracted to sell it to the second respondents. Prior to settlement of the contract, the first respondents lodged a caveat on the ground that the applicant had failed to act in good faith in exercising its power of sale. The first respondents argued that a short marketing period, and a rapid sale within days of a failed auction, all of which took place whilst Queensland’s state and international borders were closed due to the COVID-19 pandemic, amounted to a breach of the mortgagee’s duty of good faith.
Shane Monks appeared for the first respondents, instructed by David Kam & Co.
The judgment is published here.