Previously we noted that the Kawarau Falls case had been appealed to the Supreme Court and we were awaiting its decision (Kawarau Village Holdings Ltd v Sun [2017] NZSC 150). 

To recap on this case: in September 2016 the Court of Appeal held that in circumstances where an 'off the plans' project could not be completed and the Agreement for Sale and Purchase had been cancelled by the developer, the developer had to pay purchasers back their deposits. 

Although this result appeared to set a favourable precedent for purchasers, a purchaser's rights became uncertain when the Court of Appeal decision was appealed to the Supreme Court.

On 6 October 2017, the Supreme Court of New Zealand released its judgment . The majority of the Supreme Court agreed with the lower court and found that the deposits must be refunded to the purchasers, and dismissed the appeal.

The rights of purchasers, in circumstances where they have bought off the plans and the project cannot be completed, are now clearer.