Legal Article

 

Obligations of promoter regarding veracity of the advertisement or prospectus - The Real Estate (Regulation and Development) Act, 2016

Obligations of promoter regarding veracity of the advertisement or prospectus is defined under Section 12 of the Real Estate (Regulation and Development Act, 2016).  

Where any person makes an advance or a deposit on the basis of the information contained in the notice advertisement or prospectus, or on the basis of any model apartment, plot or building, as the case may be, and sustains any loss or damage by reason of any incorrect, false statement included therein, he shall be compensated by the promoter in the manner as provided under this Act:

Provided that if the person affected by such incorrect, false statement contained in the notice, advertisement or prospectus, or the model apartment, plot or building, as the case may be, intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate as may be prescribed and the compensation in the manner provided under this Act.

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Establishing promissory estoppel

•       The assumption must be clear and unambiguous

Legione v Hateley (1983) 152 CLR 406 at 436 per Mason & Deane JJ; Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd [2016] HCA 26 at [35]

‘The statement that the tenants would be "looked after at renewal time" is not capable of conveying to a reasonable person that the tenants would be offered a further lease’ (Crown at [35])

•       Important information cannot be missing

•       DHJPM Pty Ltd v Blackthorn Resources Ltd [2011] NSWCA 238

•   Assessed by whether reliance is reasonable in the  circumstances

                                 ACC v Gray

‘a representation in estoppel [is] to be assessed by how it would be reasonably understood by the addressee in the context of the surrounding circumstances. Equity does not shrink from ascribing meaning to a representation and mere imprecision or loose definition will not preclude a remedy for unconscionability, at which … estoppel is ultimately directed.’

Accurate Financial Consultants P/L v Koko Black P/L [2008] VSCA 86, [134]-[135]