Misleading behaviour by real estate agents

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Misleading behaviour by real estate agents

Recently, a property was advertised with no reference to the fact that is was Strata Title.  In settlement negotiations, the purchaser was shocked to learn that the property she was buying was in fact, strata title.

Under the Australian Consumer Law, it is illegal for a real estate agent to mislead by their conduct or representations.  A real estate agent could misrepresent the following characteristics of a property:

  • Size
  • Features and fixtures
  • Location
  • Future developments and potential
  • Price

For example, photos of a property which wrongly suggest it has sea views when that is not the case are illegal.

Silence can also amount to misrepresentation where an agent fails to mention relevant facts.

The misleading conduct by the agent does not have to be intentional.

If you are concerned about the conduct of a real estate agent and you are in the ACT, you should contact the ACT Office of Regulatory Services.

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