New Zealand couple Robert and Margaret Smallridge agreed to sell the property in Avondale, Auckland to Paljeet Singh for $1,925,000 NZD (c. £840,000).

The deal was struck at the peak of the local property market in November 2021, but the market plummeted before settlement was due to take place in 2022.

Mr Singh had already paid a deposit of $96,250 NZD (c. £42,000) for the 930m² home.

The matter went to the High Court, which heard that Mr Singh told the Smallridges six weeks before the settlement date that he was cancelling the agreement because they had allegedly breached an essential term of the agreement – to allow Singh reasonable access to the property to enable him to market and on-sell it.

Following numerous discussions between both parties and lawyers representing them, the Smallridges decided they had no option but to resell the property, Stuff reports.

Their house sold for $1,130,000 NZD (c. £490,000) in April 2023.

Following the sale, the couple instigated a claim for damages for wrongful cancellation against Mr Singh, who responded with a counterclaim for return of his deposit.

After lengthy legal proceedings, Mr Singh was ordered to pay damages of $753,803.25 NZD (c. £328,500) — the difference between the first and second sale prices, plus the costs of marketing the property again, minus his deposit.

He must also pay interest at 14% for the period between the original sale agreement and the date the property actually sold, totalling $99,604.48 NZD, and contractual interest on the net loss on resale at $268.01 NZD (c. £117) per day from 15 April 2023 until it is paid, currently $270,958 NZD (c. £118,000).

The total sum which Mr Singh now owes the Smallridges is therefore over $1.1 million NZD (c. £480,000) and counting.