A New Zealand real estate investor is faced with a staggering bill of almost $1 million by a High Court judge ruled he unlawfully abandoned the purchase of a home and issued a stark warning to anyone considering backing out of a signed agreement when the market turns.
Paljeet Singh bought a four-bedroom house in Avondale, Auckland, for $1,658,185 (NZ$1,925 million) at auction in November 2021, a time when the local market was booming.
He immediately paid a five percent deposit of $82,909 (NZ$96,250) and would settle the balance a year later.
The sellers, Robert and Margaret Smallridge, knew Singh intended to resell the property.
To facilitate this, they included an “access clause” in the contract, giving him “reasonable access” during the twelve months to refer potential buyers.
But by November 2022, as a settlement loomed, the market had taken a significant dive.
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The Avondale property sold at auction in November 2021 for $1,658,185 (NZ$1,925 million). Source: Ray White
Just six weeks before the due date, Singh pulled the plug on the deal.
His lawyer sent a letter on October 11, 2022, claiming that the Smallridges had breached the contract by denying access since October 2021.
“That loss means that my client is not in a position to reach a settlement with your clients,” according to court documents citing the letter.
“(…) Due to your customer’s violation, my customer is now formally canceling the contract. Immediately return my customer the $96,250 deposit.”
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Buyer Paljeet Singh planned to flip the property and sell it for a profit. Source: Ray White
These demands were repeated in a follow-up letter dated October 31.
The Smallridges’ lawyer quickly dismissed the claims, denying any contact regarding viewings and “notifying” Singh that they would seek “full compensation for any losses incurred” if the settlement failed.
Evidence presented in court showed that Singh’s own sales agent struggled to attract buyers, with one walking away after Singh demanded about $2.1 million (NZ$2.4 million).
The agent testified that few buyers showed interest because of Singh’s “unreasonable price expectations” and that no one had requested access.
With no other option, the Smallridges were forced to resell the property in April 2023, fetching a significantly lower $973,376 (NZ$1.13 million).
The building was a beloved family home. Source: Ray White
They then took Singh to the Supreme Court demanding compensation for their significant losses.
In a December 2025 judgment, Judge Tracey Walker ruled unequivocally that the Smallridges had not breached the access agreement.
“There is no evidence that Mr Singh was able to arrange the purchase without reselling the property,” she noted.
“It was much more likely that the settlement depended on it, despite his evidence that he intended to settle if there had been no alleged breach and that he could do so through financing.
“I am convinced that Mr. Singh’s inability to resell was a product of a declining market and his own unreasonable price expectations.”
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 768 1024"%3E%3C/svg%3E)
The house is located on 930 m².
The court ordered Singh to pay damages of $649,322.35 (NZ$753,803.25), plus contractual interest of $85,798.80 (NZ$99,604.48).
Further contractual interest on the net loss on resale was added at the rate of $230.86 (NZ$268.01) per day from April 15, 2023 until payment, along with legal fees.
The total amount owed now exceeds $964,762 (NZ$1.12 million) and will continue to rise by more than $230 daily until Singh pays off his debt.
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